Saturday, March 2, 2024
Lawyers Run The WorldJeremy Johnson Case Exposes Massive Merchant Fraud Operations

Jeremy Johnson Case Exposes Massive Merchant Fraud Operations

-

- Advertisment -spot_img

Direct Marketing Kingpin Jeremy Johnson is currently representing him in a very heated criminal trial in Salt Lake City, Utah.    Before I go into details around the massive fraud that Johnson is exposing in the performance marketing industry, here’s some interesting facts and updates around the case:

 

What’s very interesting about this case is that Johnson is exposing the massive credit card fraud in the US free trial marketing space.   During testimony it has come out that the banks that process free trial credit card offers are deeply involved and fully aware of what their clients are doing to stay below Visa/MC chargeback regulations:

  1. Create multiple shell corporations with different “signers” to acquire Visa/MC merchant accounts.
  2. Load balance transactions across each of these shell corporations so that each company never breaches Visa/MC fraud alerts.
  3. Pump through fake transactions or small dollar amount transactions to keep transaction rates higher and chargeback rates lower, flying below the Visa/MC fraud radar screens.

While it seems as if the banks never lost any money and were deeply involved in the “scheme”, it is still unlawful to process transactions like this.

There are a number of merchants here in the US that defraud consumers under this type of billing model, and in the future we will look to review their business models and how it works in greater detail.

Should be interesting to see the outcome of the case.   My guess is that Johnson will beat some of the charges levied against him but will be found guilty of some of the other charges.   What are your thoughts?

Frank Orange
Frank Orange
Frank Orange is a long time marketer with extensive expertise in creating products that sell on the internet. He knows everything about the entire process, from moving product to merchant accounts and is here to share his information.

What's your opinion?

Latest news

The Great CTV Fraud: Unmasking CycloneBot’s Billion-Dollar Scheme

In the crazy world of Connected TV (CTV) advertising, the latest saga to unfold is one that reads like...

WTF Are Cohorts? Beyond the Buzzword Bingo

Ah, cohorts. In the ever-evolving landscape of digital advertising, where the thirst for personalization and precision targeting knows no...

AdTech Exposed: Peeling Off the Privacy Layers with John Piccone

Yeah, sometimes it feels like onlnie advertising ins nothing more than a high-stakes casino, where the bright lights of...

The Art of Responding to an FTC CID

Leading FTC Investigation and Enforcement Defense Lawyer Discusses How Marketers Can Best Position Themselves if They Become the Subject...

Dave Morgan Talks Tech Under Fire: Ukraine’s Unyielding Innovation

Embarking on a narrative journey through the heart of Ukraine's tech scene amidst turmoil, Dave Morgan, Chairman of Simulmedia,...

Before Influencers Were Cool: The Andy Batkin Story of Digital Darwinism

Navigating the tumultuous seas of digital marketing and ad tech requires not just a sturdy ship but a captain...

Must read

The Great CTV Fraud: Unmasking CycloneBot’s Billion-Dollar Scheme

In the crazy world of Connected TV (CTV) advertising,...

WTF Are Cohorts? Beyond the Buzzword Bingo

Ah, cohorts. In the ever-evolving landscape of digital advertising,...

You might also likeRELATED
Recommended to you