Legality Behind Exploiting Website Loophole for Money

[legalityforall]

State: California

So, I recently found a website that has a promotion system that's very easy to exploit. It's a peer-to-peer service, sort of like Uber. What happens is when you create a new account, 'A,' you automatically receive 10 worth of credits to spend. If you create a second account, 'B,' you can essentially 'sell' a service to account A and transfer the 10 from A to B. Once you sell 50 worth of stuff, the website let's you cash out so I could easily transfer the 50 over to my bank acct or whatever. If I keep creating more accounts like account A, get the 10 promotion, and 'sell' stuff from account B to A, I'll make easy money. The question is - how illegal is this, if at all? Can I get caught? What happens if I do get caught? I am above the age of 18 but younger than 21 if that helps. Thanks!

 

[quincy]

State: California

So, I recently found a website that has a promotion system that's very easy to exploit. It's a peer-to-peer service, sort of like Uber. What happens is when you create a new account, 'A,' you automatically receive 10 worth of credits to spend. If you create a second account, 'B,' you can essentially 'sell' a service to account A and transfer the 10 from A to B. Once you sell 50 worth of stuff, the website let's you cash out so I could easily transfer the 50 over to my bank acct or whatever. If I keep creating more accounts like account A, get the 10 promotion, and 'sell' stuff from account B to A, I'll make easy money. The question is - how illegal is this, if at all? Can I get caught? What happens if I do get caught? I am above the age of 18 but younger than 21 if that helps. Thanks!

It is smart of you to ask about the legality of your plan before implementing it.

Here is a link to California's law on fraud and deceit: http://www.leginfo.ca.gov/cgi-bin/displaycode?section=civ&group=01001-02000&file=1565-1590

Following is a link to California Civil Jury Instructions for fraud and deceit, where you can click starting from 1900 Intentional Misrepresentation through the different sections to better understand the laws involved and what could happen to you if you get caught (and most people who attempt to "make easy money" through schemes like the one thought up by you will get caught): https://www.justia.com/trials-litigation/docs/caci/1900/

From Engalla v. Permanente Medical Group, Inc., (1997): The elements of deceit or fraud requires: "(a) misrepresentation (false representation, concealment, or nondisclosure); (b) knowledge of falsity (or 'scienter'); (c) intent to defraud, i.e., to induce reliance; (d) justifiable reliance; and (e) resulting damage."

Although I can't tell you how likely it would be that the website decides to take legal action against you, they could. You are too young to want to mess up your future. There are plenty of legal ways to make money and I strongly recommend you concentrate on those.

 

[legalityforall]

Wow, fantastic information. Thank you very much!!

 

[quincy]

Wow, fantastic information. Thank you very much!!

You're welcome, legalityforall. Thank you for the thanks.

 

[Zigner]

I suspect the web site you are dealing with prohibits the creation of multiple accounts for the same person.

 

[quincy]

I suspect the web site you are dealing with prohibits the creation of multiple accounts for the same person.

I suspect so, too, although the violation of the terms and conditions on a site generally results only in a cancellation of an account or a banning. The legal issue would be the intent to defraud the site through the creation of multiple accounts.

 

[Zigner]

I suspect so, too, although the violation of the terms and conditions on a site generally results only in a cancellation of an account or a banning. The legal issue would be the intent to defraud the site through the creation of multiple accounts.

Accessing a website in this manner may violate federal law...the OP asked about the "legality" of his proposed method.

 

[Just Blue]

FA Question.

Why are you all helping this thieving poster?

 

[quincy]

FA Question.

Why are you all helping this thieving poster?

I assume a post was deleted?

Certainly neither Zigner nor I were helping legalityforall except to tell him the laws that would be involved if he were to go ahead with a plan such as the one he proposed.

legalityforall has not done anything wrong (yet ) other than to inquire about the legal consequences should he implement his idea. I assume (hope), now that he knows the possible legal consequences, he will find a legal way to earn money instead.

 

[legalityforall]

FA Question.

Why are you all helping this thieving poster?

I knew from the start this wouldn't be the most ethical thing to do, and (believe it or not) I needed just a few thousand dollars to launch a website. I planned to pay back all of it as soon as my circumstances improved just to avoid the whole follow up guilt...Now knowing, however, that this would cross legal boundaries, I no longer wish to employ with this quick-money scheme. Thanks to all that helped!

 

[quincy]

I knew from the start this wouldn't be the most ethical thing to do, and (believe it or not) I needed just a few thousand dollars to launch a website. I planned to pay back all of it as soon as my circumstances improved just to avoid the whole follow up guilt...Now knowing, however, that this would cross legal boundaries, I no longer wish to employ with this quick-money scheme. Thanks to all that helped!

I think your decision to figure out a different way to earn money is smart.

We all appreciate the thanks, legalityforall. Good luck with the development of your own website.