Brothers Plead Guilty To $23M Online Scam

H

HardOCP News

[H] News
Joined
Dec 31, 1969
Messages
0
I'm not criticizing anyone but how is it possible that two guys made $23 million in bogus online orders on Nordstrom's website...and no one caught on for almost two years?

In January 2010, the brothers discovered they could exploit a computer programming error in Nordstrom’s ordering system by placing orders that would ultimately be blocked by Nordstrom. No merchandise would ship and nothing would be charged to their credit card. However, Nordstrom would unknowingly continue to compensate FatWallet for the order, and the brothers would still receive the cash back credit from FatWallet. Between January 2010 and continuing through October 2011, the CHIU brothers collectively placed more than $23 million in fraudulent orders through Nordstrom.com. The fraudulent ordering resulted in Nordstrom paying $1.4 million in rebates and commissions, with more than $650,000 in fraudulent cash back payments going directly to the brothers.
Click to expand...
 
Exploit? maybe yes, but I'm not sure if I would call it "fraudulent" though.

I've seen plenty of corporations use more underhand/evil ways to make money without getting punished.
 
gibber said:
Exploit? maybe yes, but I'm not sure if I would call it "fraudulent" though.

I've seen plenty of corporations use more underhand/evil ways to make money without getting punished.
Click to expand...

Corporations are people too. Don't be so hard on them!
 
the-one1 said:
Yes they are, except when it's time to dish out punishment for a crime.
Click to expand...

C'mon now, that's BS and you know it. I mean if I had 8 billion debt I would be just fine and able to continue to live in my house, keep my cars, no different...Plus, I could expect a "bail out" check from the government as well.
 
Steve said:
I'm not criticizing anyone but how is it possible that two guys made $23 million in bogus online orders on Nordstrom's website...and no one caught on for almost two years?
Click to expand...

The orders weren't being fulfilled or even charged to any cards. Nordstrom had blacklisted these two over a previous incident, so the system was automatically throwing out orders the moment they came in with their names on the order. Nobody actually took in $23 million (or had a loss of $23 million) since no sale actually happened according to the article.
 
You must log in or register to reply here.
Back
Top