Today's Hard|Forum Post
Today's Hard|Forum Post

Tuesday April 10, 2012

Brothers Plead Guilty To $23M Online Scam

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 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.