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The relay market powering token resellers and fraud

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Re: The relay market powering token resellers and fraud

#61

"Token reseller market" is a fancy way of saying credit card fraud. If someone stole xboxs from stores using stolen credit cards and then sold them at 10% of their price, at what point is it a "resller market" and not "criminal enterpirse"?

one man's fraud is another man's arbitrage opportunity

Re: The relay market powering token resellers and fraud

#64

Earlier quoted context omitted.

With theft, somebody ends up without an Xbox. Theft is wrong. This is mere breach of contract, whether it's wrong depends on the contract.

What?! It is definitely credit card fraud, and a criminal enterprise, and by any definition it is wrong. I cannot imagine a jurisdiction where this is a “mere breach of contract”.

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Re: The relay market powering token resellers and fraud

#65

The real problem is subscription models. Businesses want recurring revenue so they try to game the ratio of fixed subscription prices to COGS but it's always a game and so whoever can figure out the upside for the company can figure out the complementary upside for themselves. How would one even word a bulletproof subscription contract for agentic tokens, anyway? You can't forbid automation because sub-agents are aut…

The abuse is factored in to pricing and quota structure. I have some past experience with subscription plans for a much less interesting product. Abuse is inevitable. As you do your math on the subscription costs you look at the actual usage across all accounts, which includes the abuse. Cleaning up abuse was still a priority because it meant we could give more service to the real customers. It's a frustrating battle…

There is a reason the Max plan gets only so few Fable tokens per week.

Re: The relay market powering token resellers and fraud

#66

Earlier quoted context omitted.

> How would one even word a bulletproof subscription contract for agentic tokens, anyway? You can't forbid automation because sub-agents are automation. You could forbid "using tokens for the benefit of more than the human who signed up" but then what do families (especially with kids) need to do? What if your friend asks you a question and you turn to a chat model? Forbidding "reselling" tokens outside of a househol…

> You can't forbid automation because sub-agents are automation. Is this some kind of attempt to make the other side look better by making the worst argument you can?

....ask the original poster not me ? I just quoted him

Re: The relay market powering token resellers and fraud

#67
post #58

the way i see it there are 3 types of resellers. the ones using fake credit cards to rack up costs and then cancel the card are doing actual fraud. then you got mass free trial abuse which is more of a gray area and i would say its still wrong. but if you sign up for a subscription, pay for it and resell your monthly tokens thats not at all unethical, even if its breaking their terms and costing the provider money. i…

Instead of credit card, prepaid stablecoin purchases would solve the problem. No chargebacks.

Re: The relay market powering token resellers and fraud

#68
post #52

Earlier quoted context omitted.

These aren't stolen credit cards. This hack works by maxing out subscription limits of the Anthropic/OpenAI plans, so you never pay additional API fees. It's fraud but not theft.

It’s pretty clearly theft of services as generally defined in most places. It’s a hack in the same sense that rolling back your electric meter is a hack.

Violation of Terms of Service is civil, not criminal, matter.

Re: The relay market powering token resellers and fraud

#69
post #60
post #42

Earlier quoted context omitted.

Some countries have more complexity to registering a new company than others, and perhaps it’s the establishment of a new legal entity that is an unlocker to the free credits. I don’t know if that’s true of India or not, but I like to give comment authors the benefit of the doubt that being specific about the geography was helpful context here

India is very bureaucratic and slow for starting a new business new entity. It ranked 63rd on the most recent world bank survey of 2020[1], and it is even more painful to close one. [1 ] https://openknowledge.worldbank.org/entities/publication/130...

So that report was discontinued after relatively proven statistical gaming and interference by several countries, doesn’t exist post 2020. Post 2020 SPICE+ launched making registration trivially fast. However really the trick isn’t creating and closing companies, it’s that the fact majority of reporting that would catch scam companies like these just get ignored and gather small civil penalties payable years later or not at all, while keeping up with major reporting that might close their bank accounts… it’s a very disorganised system that facilitates a lot of unpleasant activity.

Re: The relay market powering token resellers and fraud

#70
post #58

the way i see it there are 3 types of resellers. the ones using fake credit cards to rack up costs and then cancel the card are doing actual fraud. then you got mass free trial abuse which is more of a gray area and i would say its still wrong. but if you sign up for a subscription, pay for it and resell your monthly tokens thats not at all unethical, even if its breaking their terms and costing the provider money. i…

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