After confirming that hundreds of thousands of dollars in fraud had occurred through Zeekler back in mid February, Zeek Rewards put out a press release advising its members that the company had implemented some ‘extra fraud detection measures‘ to deal with the problem.
Zeek Rewards claimed that
thieves have used hundreds of stolen credit card account numbers to create fake customers.
They then those stolen cards to purchase retail bids to earn the 20% commission. They request to be paid the commission by STP or AlertPay.
By the time the owners of the stolen credit card number contact us or their bank, the commissions have already been paid to these thieves.
Also admitted was that Zeek Rewards had no recourse to recover the funds paid out to these “thieves”. Ultimately it would be Zeek Rewards members who would take the hit as the hundreds of thousands paid out due to fraud would be deducted from the company’s daily profit share.
So anyway, that was back in mid February 2012. A month and a half later you’d assume that Zeek Rewards was free of fraud… right?
Wrong. Well, that’s if a quick perusal of some of Zeekler’s more recent penny auctions are anything to go by.
One of the more dubious types of auctions made available on Zeekler are the cash auctions. Members essentially gamble in the sense that they hope they are the last to make a bid… with the winner taking home actual cash.
The current auction numbers are in the 22,900′s so all of these auctions have wound down within the last week.
Auction #1 is $100 in cash:
You can see that it is a ‘Retail Paid Bid’ auction, meaning that no free bids are allowed. Each retail paid bid costs 65 cents.
The winner won the auction by placing a whopping 1,241 bids. At 65 cents a bid, that comes in at 806.65. Add on the final auction price of $58.77 and ‘angielieu’ paid $865.42 for $100 cash.
Does that sound like a legitimate penny auction to you? To give you an idea of just how abnormal this particular auction is, another $100 cash auction went for just $5.49.
Auction #2 is for $150 cash:
Once again, ‘angielieu’ wins the auction… by placing 1,574 retail paid bids.
At 65 cents each plus the final auction price of $43.05, this equates to $1066.15 being paid for $150 cash.
And on and on it goes…$100 cash going for $482.47:
And it’s not just Zeekler’s cash auctions that look dodgy either. Here’s a Zeekler member paying $214.86 for a $75 Walmart giftcard:
Again Zeekler member angielieu purchases a dinner set with a retail value of $354 for a suspicious $609.61:
With the ‘send me cash option’, I can’t help but wonder if angielieu took the cash or the actual dinner set.
Now of course like everybody else I’ve heard the ‘but people just like to gamble… it’s addictive and they love penny auctions!’ argument but cmon guys, we’re talking people paying hundreds of dollars over the retail price here.
Keep in mind these are paid bids and cannot be obtained other than being purchased from Zeekler at 65 cents a pop.
Zeek Rewards might very well have addressed the referral commissions being paid out on the purchase of bids by “thieves”, but it certainly looks like Zeekler’s penny auctions are still plagued with suspicious activity.
And these are supposedly the same penny auctions generating hundreds of thousands (millions?) of dollars in investment returns for Zeek Rewards members daily?
Sure thing guys.