A mother-daughter duo managed to scam a multibillion dollar company.
Carrie and Sarah Jones bilked Coca-Cola out of more than $200,000 by manipulating a bottle cap contest and then selling their winnings on eBay, Oregon news site NWCN.com reports. Contest participants entered a code found under their bottle caps on the Coke website to win prizes. It’s still unclear how the Albany, Oreg., mother-daughter team was able to figure out so many winning codes.
“I mean, it boggles the mind that they could single-handedly fool a multi-billion dollar company like Coca Cola," Mike Wood of the Albany police department told NWCN.
A Coca-Cola spokesman declined to comment on the case to The Huffington Post.
The prosecutor in the case argued that the odds were stacked against one city, let alone one household, winning so many prizes, as frustrated contest participants can probably attest. In addition, the contest prohibited one family from winning more than 5 times, a limit prosecutors believe the Jones’ avoided by creating email addresses using other people’s identities, according to the AP.
The two, who pled guilty to computer crime, will have to pay Coca-Cola back to the tune of almost $50,000.
But that could be just the tip of the iceberg in terms of how much they were able to make off the prizes. The Albany police accused the two of claiming thousands of prize codes, including for things like concert and movie tickets, as well as gift cards, according a report from the Albany Democrat-Herald. They then grouped the prize codes together and sold them on eBay.
With eBay's auction format, bidders can sometimes end up paying more than face value for an item -- even a gift card.
Criminals aren't the only ones adept at using the internet to their advantage when it comes to company contests. According to one eBay guide, contest participants can sell any prizes they win from Coke contests, but not the points they redeem from Coke's ongoing "rewards" promotion. In addition, some avid McDonald's Monopoly players have used Craigslist and other websites to trade pieces in an aim to win the game.
Oddly enough, the mother-daughter team isn't the first to rip off a major company through a promotional contest. The FBI arrested 8 people in 2001 for allegedly netting $13 million in fraudulent McDonald’s prizes. The crime ring was charged with fixing the outcome of games like McDonald’s Monopoly by controlling access to the high-prize game pieces, according to the AP.
Also on HuffPost:
Online Dating Scams
<a href="http://www.huffingtonpost.com/2012/05/15/online-romance-scams-cost-50-million-in-2011_n_1518162.html" target="_hplink">Fraudsters feigned interest</a> in lonely online romance seekers to rob victims of about $50 million last year.
Debt Collector Scams
Phony debt collection agencies <a href="http://www.huffingtonpost.com/2012/04/11/ftc-busts-scam-debt-collector_n_1418582.html?ref=business&ir=Business" target="_hplink">have pressured victims</a> into giving up millions of dollars. The Federal Trade Commission recently closed down two California-based <a href="http://www.huffingtonpost.com/2012/02/21/ftc-indian-call-center-fraud-debt-collectors_n_1289751.html" target="_hplink">companies with call centers in India</a> after they defrauded Americans out of $5 million over the past two years.
Online Marketplace Scams
Craigslist and eBay are a playground for scammers. Consumers have sent payments to <a href="http://www.huffingtonpost.com/2012/04/23/craigslist-scams-tips-losing-money_n_1445763.html" target="_hplink">places like Nigeria </a>for items advertised online only to discover they have been scammed. Last year, Romanians pretending to be U.S. citizens put fake ads for pricey items on eBay and Craigslist, <a href="http://www.huffingtonpost.com/2012/04/23/craigslist-scams-tips-losing-money_n_1445763.html" target="_hplink">defrauding Americans out of more than $100 million. </a>
Prize Money Scams
<a href="http://www.huffingtonpost.ca/2012/04/28/lottery-scam-probe-nets-2_n_1460916.html" target="_hplink">Canadian police arrested a man </a>who tried to take a $70,000 processing fee from an elderly Californian woman who believed she was going to win a $7.5 million lottery prize in April. More recently,<a href="http://www.huffingtonpost.com/2012/05/17/jamaica-lottery-scam-fraud-suspects-arrested_n_1525498.html" target="_hplink"> eight Jamaican swindlers accused</a> of duping Americans in lottery scams were also arrested.
Fake charity organizations come out of the woodwork to exploit the generosity of others, <a href="http://www.huffingtonpost.com/2012/03/09/tornado-relief-fraud-scam_n_1334853.html" target="_hplink">especially during times of disaster.</a> Most recently, an organization that claims to help disabled veterans called Disabled Veterans National Foundation (DVNF) <a href="http://www.huffingtonpost.com/2012/05/08/charity-fraud-disabled-national-veterans-foundation_n_1499314.html" target="_hplink">took millions of dollars from donors</a> without spending the money on veterans.
Mortgage Foreclosure Scams
Scammers targeting struggling homeowners have offered false services to help with mortgage settlements. Mortgage foreclosure scams have shot up <a href="http://www.huffingtonpost.com/2012/04/16/mortgage-foreclosure-scams_n_1429805.html" target="_hplink">60 percent in 2012 as new federal programs</a> for mortgages have provided avenues for fraudsters to exploit.
Travelling Relative Scams
Scam complaints related to travelling surged right before <a href="http://www.huffingtonpost.com/2012/04/11/spring-break-travel-scams_n_1418954.html" target="_hplink">spring break last year. Crooks defrauded</a> grandparents out of money when their grandchildren were travelling abroad. The scammers, who find out about the travel plans from places like social media sites, pretend to be the grandchild asking for wire transfers on the phone. The scams have involved scammers pretending in an email to be a victim's travelling relative who has recently been mugged or has lost their passport.
Although there isn't much data on how often it occurs, food scams can pose a tremendous<a href="http://www.huffingtonpost.com/2012/04/20/food-fraud-hoax-grocery-store_n_1439995.html#s889480&title=Milk_" target="_hplink"> health risk. The chances</a> of dilution and counterfeiting increase when food is imported from other countries, and some foods like fish and olive oil are particularly prone to adulteration.
Online Prescription Drug Scams
Scammers have sold drugs to online consumers and then posed as government agents asking the buyers to pay money to <a href="http://www.huffingtonpost.com/2012/04/12/online-prescription-drug-scam_n_1420776.html" target="_hplink">avoid jail time. A Texas woman </a>killed herself after being caught up in one of these drug schemes.
Credit Card Scams
Credit card breaches allow fraudsters to make charges on other peoples' cards after getting a hold of numbers. Global Payments Inc., a third party payment processing service for MasterCard and Visa, made headlines in April for reporting that over a million card numbers had been compromised from their system, <a href="http://news.cnet.com/8301-1009_3-57407981-83/global-payments-calls-data-breach-contained/" target="_hplink">according to CNET.</a>