AuctionBytes Blog
Covering auctions, collectibles and marketplace selling.

AuctionBytes Blog The AuctionBytes Blog has been giving a voice to online merchants since its launch in 2005. Named one of the world's top 30 blogs in 2008 by "Blogging Heroes." Weigh in with your thoughts on the joys and pitfalls of selling online.
Mon Feb 11 2019 15:01:29

A Glitch That Impacted eBay Not Sellers

By: Ina Steiner

Sponsored Link

How many times have readers said that glitches always impact sellers and not eBay? Here's an exception to the perceived rule.

The Justice Department said a buyer exploited a glitch on eBay and racked up lots of purchases without technically paying for them. The government said a glitch permitted repeated uses of the same gift card.

It made the claim in a press release in June when it announced it had charged a Pennsylvania man with wire fraud in connection with a scheme to over-redeem gift cards.

"The information alleges that between October 29, 2016, and January 10, 2017, Broudy intentionally conducted approximately 1100 fraudulent transactions triggering this glitch, and in the process over-redeemed approximately $320,582 from the company's gift cards," the US Attorney's office alleged.

The Philadelphia Inquirer had more details in an article published today.

It's rather embarrassing for eBay. While there's no indication of when the glitch came into being, the government said it was in place for at least 2-and-a-half months.

Presumably sellers weren't held responsible for the alleged fraud since items were purchased with an eBay gift card, so mark this down as a case where a glitch cost eBay rather than eBay sellers.



Comments (12) | Permalink

Readers Comments

Perminate Link for A Glitch That Impacted eBay Not Sellers   A Glitch That Impacted eBay Not Sellers

by: RL15 This user has validated their user name.

Mon Feb 11 16:16:10 2019

To bad he got caught!!

of coarse fleecebay can commit fraud everyday and nothing happens.

Perminate Link for A Glitch That Impacted eBay Not Sellers   A Glitch That Impacted eBay Not Sellers

by: sasikat9 This user has validated their user name.

Mon Feb 11 17:56:54 2019

So greed bay has a glitch that someone managed to steal over 300 thousand dollars... Thats funny cause I'm willing to bet they steal that much daily from their sellers......So Karma has a way and hopefully more of these kind of glitches occur.

To bad the guy got caught but I would think he isn't the only one who knew about the glitch.

Perminate Link for A Glitch That Impacted eBay Not Sellers   A Glitch That Impacted eBay Not Sellers

by: pace306 This user has validated their user name.

Mon Feb 11 18:36:21 2019

To quote the thieves over in San Jose:

"We have identified you as a business seller. That being the case, its quite common in selling online that you experience losses. Since you are a business, its expected that you WILL take some losses when selling on eBay. Therefore take the loss, and there is nothing we will do for you"

Thats what they tell you when an eBay buyer steals from you, so why cant that just be enough for eBay??????

Why is the Justice Dept even involved??? THEFT is "di reguir" on eBays platform - isnt it time someone stole from them? (with impunity).

Im only sorry - I didnt figure it out (JK)

eBay deserves EVERYBIT of it and then some ....

Perminate Link for A Glitch That Impacted eBay Not Sellers   A Glitch That Impacted eBay Not Sellers

This user has validated their user name. by: iheartjacksparrow

Mon Feb 11 20:07:42 2019

"“We have zero tolerance for criminal activity on our marketplace, and we’re pleased that this individual has been brought to justice," eBay spokesperson Ryan Moore said in a statement.

If that was an honest statement, why does eBay allow liar buyers to scam sellers on (I imagine) a daily basis? Why doesn't eBay take action to stop the fraud that is a serious problem on their site?

Perminate Link for A Glitch That Impacted eBay Not Sellers   A Glitch That Impacted eBay Not Sellers

This user has validated their user name. by: NoMoreEbay

Tue Feb 12 09:03:43 2019

“We have zero tolerance for criminal activity on our marketplace."

Have you ever just sat there with your mouth open in such a high level of disbelief that you don't know whether to laugh or vomit. Literally unable to mouth a single word.

Zero tolerance???? Their entire business is based on complicit crimes, scams, thieves and counterfeits.  

Perminate Link for A Glitch That Impacted eBay Not Sellers   A Glitch That Impacted eBay Not Sellers

by: pace306 This user has validated their user name.

Tue Feb 12 10:58:29 2019

"No place" - when its directed towards US, when its directed towards our smaller sellers - then its not really a big deal.


Perminate Link for A Glitch That Impacted eBay Not Sellers   A Glitch That Impacted eBay Not Sellers

by: mcposty This user has validated their user name.

Tue Feb 12 11:52:49 2019

Why is the justice department suddenly concerned with ebay? they need to look at Ebay!!

Perminate Link for A Glitch That Impacted eBay Not Sellers   A Glitch That Impacted eBay Not Sellers

by: pace306 This user has validated their user name.

Tue Feb 12 16:51:29 2019

McPosty :)

the NUMEROUS lawyers over in San Jose, ALWAYS portray themselves as the victims.

they write briefs, give counsel (and money), and pretend its all the "nasty, evil, mean sellers fault".

This time, some guy found a loop in their system. After telling anyone/everyone who would listen that they are a super duper pooper scooper tech company - it COULDNT be their fault. He must have found a way to cheat the system and we (poor old eBay) got caught and lost 300K.

Poor them, boo hoo, less champagne, less leer jet travel, less parties for the rich and stupid.

Maybe this time, eBay got their comeuppance, maybe not - but their insurance made them whole - sellers cant fall back on that.

I hope thy get more of their own medicine ... and how!

Perminate Link for A Glitch That Impacted eBay Not Sellers   A Glitch That Impacted eBay Not Sellers

by: b86fiero This user has validated their user name.

Wed Feb 13 09:35:45 2019

Business losses generally equate to higher prices.  $300,000+ is a huge loss for any business.  Well, perhaps one mid level manager's salary at eBay.  Nevertheless, that $300k plus legal expenses has to be recouped somehow and from somebody.  And we wonder why seller expenses go up and pay to play schemes abound.  

Perminate Link for A Glitch That Impacted eBay Not Sellers   A Glitch That Impacted eBay Not Sellers

by: Ebay Little Shop of Horrors This user has validated their user name.

Thu Feb 14 12:35:10 2019

This is what happens when you don't pay your programmers.

Perminate Link for A Glitch That Impacted eBay Not Sellers   A Glitch That Impacted eBay Not Sellers

This user has validated their user name. by: Don Wagner

Thu Feb 14 12:35:31 2019

Why are they even prosecuting this? Isn't it just part of eBay's famous 'Cost of Doing Business' ????

Perminate Link for A Glitch That Impacted eBay Not Sellers   A Glitch That Impacted eBay Not Sellers

by: val2525 This user has validated their user name.

Thu Feb 14 16:35:04 2019

I find it hard to believe that only ONE buyer figured out this glitch. I think others did but haven't been caught.



Login is required to post comments.
To sign in to leave a comment using your AB Verify User Name, fill in the form below. If you have not yet signed up for AB Verify, or if you'd like more information, go to the Registration Page
.

Login for AB Verify
Be sure and use your email address and password to log in.

 
Email:
Password:
 
 Forgot Your Password?
 Even though you are signed in with the AuctionBytes Blog, you will have to sign in to the EcommerceBytes blog. But you can sign in with your existing AB Verify info.