Gift cards sell for more?

[mugsisme]

I just did a quick search of completed auctions. Why do some gift cards sell for more than their value? Like $200 target card sells for $500, or something like that.
Is it a fake auction?

 

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[mugsisme]

http://pages.ebay.com/link/?nav=item.view&id=272055349631&alt=web

 

[kali_is_my_copilot]

I have seen this type of thing brought up in many iterations across various internet communities and the general consensus is that this kind of thing is probably money laundering. See also auctions for common electronics like iPhones selling for 10x what the going value is for that make/model.

 

[dieselram94]

I have seen this type of thing brought up in many iterations across various internet communities and the general consensus is that this kind of thing is probably money laundering. See also auctions for common electronics like iPhones selling for 10x what the going value is for that make/model.

Bingo. Seems like law enforcement would have easy pickings with this


Sent from a spun out toilet paper tube (one ply)!

 

[kali_is_my_copilot]

I'm just not sure how enforceable anything is, y'know? Even if you sell over the reportable limit for sales or value, the IRS doesn't get an itemized report do they? Honestly it seems like a pretty wide-open loophole. As long as you're expensing things and "documenting" "purchases" made for resale what do they care. Not condoning it at all, I just find it curious.

 

[dieselram94]

I'm just not sure how enforceable anything is, y'know? Even if you sell over the reportable limit for sales or value, the IRS doesn't get an itemized report do they? Honestly it seems like a pretty wide-open loophole. As long as you're expensing things and "documenting" "purchases" made for resale what do they care. Not condoning it at all, I just find it curious.

I think it's quite enforceable if they were to follow the money. Drug dealers come to mind.


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[trdhrdr007]

I'm not buying the money laundering idea. Too much effort for too high of a percentage. Tons of small transactions in order to process a significant amount of money & eBay gets a 10% fee.

I can see where it might be worthwhile if buyers used stolen credit card information to buy legit cards. I can also understand small time cons where the purchaser claimed they never got the card & got a refund.

 

[mugsisme]

My son said he was going to explain it to me today, and I didn't get a chance to speak with him. He does these credit card things. Not scams, but he buys gift cards with his credit card for airline miles. Right now he has an offer that he can earn a HUGE amount of points buying $4500 of merchandise on Amazon. I was trying to find something for him to buy, when I thought of the gift cards. That is when I found those auctions. I'll let you know when I do speak with him.

 

[dieselram94]

My son said he was going to explain it to me today, and I didn't get a chance to speak with him. He does these credit card things. Not scams, but he buys gift cards with his credit card for airline miles. Right now he has an offer that he can earn a HUGE amount of points buying $4500 of merchandise on Amazon. I was trying to find something for him to buy, when I thought of the gift cards. That is when I found those auctions. I'll let you know when I do speak with him.

I'm interested to hear about this


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[cyberdan]

I wonder how many winning bidders actually pay for the auction?

 

[cache finder]

What better way to get "legit" money, you make a listing for a gift card, and now with your stolen credit card you make a purchase for gift card, now you have $700 that paypal will wire to your account. Wash and repeat.