NOTE: The Apple company has been made aware of this practice, and that some of their employees are involved in this scheme, but so far Apple has done nothing about it. This particular scam has been going on for some time, but it continues today unabated.
This is a scheme that preys on the poor and the homeless - pretty much anyone who is desperate for cash.
Apple offers some of it's iPhone for free if a person signs up for a 2 year service contract. The person running the scheme will tell a homeless person, "if you go to the Apple store and get approved for a free phone, I'll give you up to $200 dollars for the phone." So the homeless person goes to the Apple Store, signs up for a 2 year service contract. He receives the free phone and has it activated. The homeless person then hands the phone over to the person running the scheme for the $200. The schemer then turns around and sells that iPhone on the international market for up to $700. Eventually the bills for the service contract pill up, the homeless person cannot pay, and his/her credit is ruined, and most likely will never be able to purchase another phone.
These schemers not only target the homeless but anyone who seems desperate for cash, so they will hang out at plasma blood banks, title loan stores, etc, looking for their next victim.
Still, if you don't care about your credit score and need some quick cash...