There wasn't enough information in the article to explain how this scam worked. I understand that they would make large fake orders as customers, which they would then cancel, but what are the normal procedures when that happens? The article says they'd just buy a lot of gift cards, but I don't understand how that wouldn't be immediately detected and how Uber wouldn't have blocked them immediately.
Does anyone have more details on the logistics of this scam?
Two men from the Fort Lauderdale, Florida area scammed Uber Eats out of more than $1 million over 19 months, local police say.
The suspects carried out the scheme — which began in January 2022 — by creating fake accounts on the Uber Eats app to act as both the customer and courier when placing grocery orders, the Broward County Sheriff's Office said in a statement. This worked because Uber Eats provides couriers with prepaid cards they can use to purchase up to $700 to complete customers' orders.
Police claim the suspects would show up as couriers for their fake grocery orders before canceling them and using the prepaid cards to purchase gift cards at the stores.
According to the sheriff's office, "On January 24, 2023, detectives conducted a surveillance operation and observed Morgan and Blackwood travel to 27 different Walgreens committing fraud that totaled a $5,013.28 loss for Uber that day. "
Yes, I understand all that - you just copied the beginning of the article, which I read.
But that still doesn't explain why Uber's systems allowed that at all, which seems insane to me. Reading other folks comments, it seems that Uber Eats allows an order to be canceled after it has already been purchased, which to me is already crazy, but if that is indeed something that Uber intentionally allows, what do they tell Uber Eats couriers to do with the purchased items? Do they say "just throw it away"??? I would expect that Uber would require some evidence, or at least give some guidance, on what couriers should do in this situaiton. The whole thing just doesn't make any sense to me.
> Yes, I understand all that - you just copied the beginning of the article, which I read.
Some people have a problem with visiting /. You asked. I said where I got the explanation from so that other people don't have to navigate away.
> But that still doesn't explain why Uber's systems allowed that at all
What did you expect? Uber to give some sort of explanation as to how their systems can be exploited? It's surprising that the details that were released at all.
My assumption here is they exploited a race condition between order cancellation and spend, as well as the lack of transparency on spend items.
As in, Uber has to provide some allowance for the Uber Eats courier to spend while the cancellation happens.
1. Enter order for $700 of whatever
2. Got to store.
3. Cancel order
4. Buy $700 gift cards immediately
Uber sees the driver doing his job. Credit cards don’t report what’s bought, only that $700 was spent. Uber courier says “oops, I didn’t see the cancel in time”. Customer isn’t charged in this case, they cancelled.
They leave with $700 of gift cards.
Still, seems easily detectable behavior, but maybe it’s common anyway.
Does anyone have more details on the logistics of this scam?