Zeek Rewards confirmed hundreds of thousands of dollars in fraud, admitting that thieves used stolen credit card numbers to create fake customer accounts and claim commissions. This admission came in an email from company support, detailing how the scheme impacted payouts to legitimate members. The company has long faced questions about whether it generated actual users to distribute bid points or merely created dummy accounts.
The absence of certified real customers receiving bid points has eroded the company's credibility. It fueled suspicions that Zeek Rewards operated as an investment scheme, with daily profit shares based on member investments rather than the actual spending of bid points. Members received returns on investment without proof that their bids were distributed to genuine customers. Often, bids entered a queue because Zeek Rewards claimed a customer shortage, yet ROIs continued regardless.
Zeek Rewards does not publicly disclose its accumulated point balance or whether it distributes points faster than it receives them. This lack of transparency between VIP bids and points given away suggested that the profit share was a daily redistribution of money invested by Zeek Rewards members.
Recently, the daily profit share began to decrease, leading to payout delays. A user inquiring about these delays received a direct response from Zeek Rewards support. The company stated the delay in STP or AlertPay commissions aimed to prevent paying substantial sums to thieves.
These fraudsters reportedly used hundreds of stolen credit card numbers to establish fake customer accounts. They purchased retail bids with these cards to earn a 20% commission. The thieves then requested commission payouts via STP or AlertPay. By the time credit card owners or their banks contacted Zeek Rewards, the funds had already been disbursed.
Zeek Rewards reported no recourse to recover these funds. The company had to refund the stolen card charges and also lost the additional 20% paid in commissions. While some affiliates expressed impatience over payout delays, Zeek Rewards processed all STP and AlertPay payments. The company intends to deduct these chargebacks and commissions paid to thieves from future profit sharing.