"Tech Live Connect processed fraudulent charges using real customer data, including names and addresses, to make the charges appear legitimate and maintain a low chargeback ratio."
"The scheme required significant monthly management, with Cotter's team spending $140,000 to acquire 3,000 virtual debit cards to offset bad transactions."
"Despite the high costs of maintaining the scheme, Tech Live Connect generated over $13 million during its four years of operation."
"In December 2020, Cotter was hit with an injunction to stop selling technical-support services, and he ultimately pleaded guilty to conspiracy to commit bank fraud."
Tech Live Connect used real customer data to process fraudulent charges, maintaining a low chargeback ratio to secure more merchant accounts. The scheme lasted four years, costing $140,000 monthly to acquire virtual debit cards. Despite significant expenses, the operation generated over $13 million. By 2020, payment processors became suspicious, leading to an investigation by the US Postal Inspection Service. Cotter was charged and ultimately pleaded guilty to conspiracy to commit bank fraud, receiving a 28-month prison sentence in January 2026.
Read at Ars Technica
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