Comments on: Box Office Express Takes In $19 Million In DVD Kiosk Scam http://davisfreeberg.com/2006/11/01/box-office-express-takes-in-19-million-in-dvd-kiosk-scam/ Wed, 31 Aug 2011 01:39:44 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: craig keefner http://davisfreeberg.com/2006/11/01/box-office-express-takes-in-19-million-in-dvd-kiosk-scam/comment-page-1/#comment-1587 craig keefner Mon, 06 Nov 2006 03:59:54 +0000 http://davisfreeberg.com/2006/11/01/box-office-express-takes-in-19-million-in-dvd-kiosk-scam/#comment-1587 I think this is "Rapid Russell". I think this is “Rapid Russell”.

]]> By: Michael Webster http://davisfreeberg.com/2006/11/01/box-office-express-takes-in-19-million-in-dvd-kiosk-scam/comment-page-1/#comment-1524 Michael Webster Thu, 02 Nov 2006 01:55:07 +0000 http://davisfreeberg.com/2006/11/01/box-office-express-takes-in-19-million-in-dvd-kiosk-scam/#comment-1524 Davis, thanks for taking the time to publicize this problem. Perhaps more individuals will search on Kiosk fraud and find these posts. Clearly the Kiosk industry is taking off, with a number of very interesting applications. But the DVD download Kiosk offers schemers a wide variety of plays. First, the criminal can simply offer DVD Kiosks in "prime locations". This is a simple fraud because no one who had the locations would need to sell the location. Losses will be in the range of $15 -30 million per fraud. Second, the criminal can offer an "investment" in DVD Kiosks already in "prime locations", various franchises for example. There will be no locations, no kiosks, and a temporary income steam. This will be a ponzi, which can produce losses of over $100 million. Finally, the criminal can use the DVD Kiosk, much like the original use of vending machines, as money laundering operation. Real DVD Kiosks will be place in real locations, and generate a "tremendous" amount of cash, which local banks will come to accept as normal for the "business". Unlike the old vending machine laundering, the DVD Kiosks will be hooked up to the Internet and use a service like PayPal to launder nickels into billions. Look for this to take off when the DVD Kiosk industry hits Malaysia, China or Russia. Davis, thanks for taking the time to publicize this problem. Perhaps more individuals will search on Kiosk fraud and find these posts.

Clearly the Kiosk industry is taking off, with a number of very interesting applications.

But the DVD download Kiosk offers schemers a wide variety of plays. First, the criminal can simply offer DVD Kiosks in “prime locations”. This is a simple fraud because no one who had the locations would need to sell the location. Losses will be in the range of $15 -30 million per fraud.

Second, the criminal can offer an “investment” in DVD Kiosks already in “prime locations”, various franchises for example. There will be no locations, no kiosks, and a temporary income steam. This will be a ponzi, which can produce losses of over $100 million.

Finally, the criminal can use the DVD Kiosk, much like the original use of vending machines, as money laundering operation. Real DVD Kiosks will be place in real locations, and generate a “tremendous” amount of cash, which local banks will come to accept as normal for the “business”. Unlike the old vending machine laundering, the DVD Kiosks will be hooked up to the Internet and use a service like PayPal to launder nickels into billions. Look for this to take off when the DVD Kiosk industry hits Malaysia, China or Russia.

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