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BlueHippo Scam Collected $15M, Only Shipped One PC
An anonymous reader writes "Turns out that those BlueHippo commercials advertising financing for computers and other electronics for anybody, regardless of credit, were way more sleazy than you thought. The FTC is bringing this fraud down, but not too soon. 'According to the FTC, the company's brazen business model continued without interruption after the 2008 settlement. "In fact, in the year following entry of this Court's Stipulated Final Judgment and Order for a Permanent Injunction, BlueHippo financed — at most — a single computer to the over 35,000 consumers who placed orders for computers that could be financed during the period,' the FTC told a court (PDF) yesterday. In the meantime, the company took in a cool $15 million in payments from consumers, who don't appear to have received anything in return.'"
Why bother running a successful business with a plan when you can run a fake business and get the hell out of Dodge when it starts coming down around you? The customers, of course, will want their money back, but will probably get a 15% off your next purchase coupon, good until yesterday, while the lawyers will get a few million to settle.
Job? I don't have time to get a job! Who will sit around and bitch about being broke and unemployed then?
I remember watching their commercials and going to their website to check it out. The fine print clearly stated that you will not receive their computer printer/combo/etc. until after you mail off the last payment!
I thought to myself, who in their right mind would even consider giving this company a dime, but apparently there were 35,000 such individuals.
The lesson here folks: if it's too good to be true then it probably is.
If you can't mod them join them.
Not surprised that BlueHippo are a bunch of worthless subhumans; but that they would be so audacious about it.
Had they actually shipped a few thousand bottom-of-range refurb Compaqs or whatever, which are pretty damn cheap by the pallet load, they never would have attracted fire from the FTC. The way that their "business" was structured(at least back when I checked their website when I first heard about them), they should have been able to clear fairly impressive margins on the backs of the poor and clueless even without cheating. And, if they had avoided legally actionable fraud, they presumably would still be operating today.
Why would somebody do that? Is enforcement so weak that getting away with it is a rational expectation?
How many would invest with Bernie Madoff if he somehow miraculously got out of prison - regardless of the name of his company?
It's NOT me! It's the meds! I'm on 1000mg of Fukitol.
Hey! I like drugs...
But how can it be perfect if the we cannot protect those who need protection most from those who would steal their money. If $1 gets spent by ACORN in a questionable manner, an act of congress is immediately enacted,but when those not so well off are robbed, we can't even make the criminal parties stop, much less put them in jail.
Or look at Verizon. They are stealing from their customers in $1.99 increments. And don't tell me it is not stealing. If you went to store and got charged for everything you put in your shopping cart before you checked out and left the store, and the store refused to refund you money if you did not actually want the merchandise, I am sure the cops would be called.
Of course Billg loves the free market. If a contractor installs unlicensed versions of MS Office on a clients computer, that contractor can earn a million dollars bounty forreporting the company, and then the BSA has every right to put the company out of business with exorbitant and irrational penalties. But if MS steals software, they can just blame it on a contractor and then apologize.
People are decrying the direction of the US, but I think after the past several years of pretty constant theft of tax dollars and personal property by the elite, a change was and is necessary.
"She's a scientist and a lesbian. She's not going to let it slide." Orphan Black
So they have your SSN for the user name. Just think of what they could do if they knew your mother's maiden name! Oh never mind, that's the password!
https://www.bluehippo.com/csv2/Login.aspx
You can never make enough laws to keep people like this from exploiting others.
It would never occur to those of us who have been raised with an inkling of an idea of good and evil to treat others in such a despicable manner.
It has nothing to do with free market. It is an issue of ethics and values.
Without the adoption of some standard of right and good within the individual heart, there is no hope of restraining people from similar scams.
I'm not doing great financially, but those of us in the know are pretty good about staying on the connected side of the digital divide.
Not only that, but we are the same folks that keep old parts around and every now and then are able to build a workable setup for someone that could really use a computer. People that are thrilled to have something, even if it comes with a CRT monitor and has a 7 year old video card.
I've 'volunteered' hours working on crappy emachines for people because I know they can't go out and buy something fast and great.
F you BlueHippo. I know these people personally, and a computer means a lot to them.
I went to their website (Google for bluehippo), and when I clicked "Purchase" I was taken to a login screen.. where my username is my SSN, and password is my mother's maiden name. Yeah, I'll give them some more personal info after I enter that...
But how can it be perfect if the we cannot protect those who need protection most from those who would steal their money.
The free market is not perfect.
But how on earth would you stop someone like this in an un-free market? Remember they are quite willing from the outset to break any law. If all the laws you pass men nothing to them, how have you helped except make it harder for honest people to run a business, who then quit leaving more room open for scams?
"There is more worth loving than we have strength to love." - Brian Jay Stanley
...the Sucker.
Somewhere, P. T. Barnum is laughing at you.
Regards;
At least they used HTTPS.
Do you have any good examples?
Bruce Perens.
No worries... They have alternate login information options, such as the harmless "Bank Account Number/Zipcode", etc.... https://www.bluehippo.com/csv2/LoginTrouble.aspx The rampant stupidity of sheeple in dire straights never ceases to amaze me.
I just called it and got through to someone calling themselves Danny Archer. They did not provide a company name in their greetings instead asking immediately for my first name.
If they're shut down they need to be shut down.
If schools actually taught things like basic economics and proper math this wouldn't be a problem.
It isn't worthless. Enforcing the law, imperfect though it may be, does help and serves two major functions against people with no morals:
1) It deters some of them. While the sociopathic types that just don't care for others can never be made to care, they are generally extremely self interested. Well, something that often works then is threats. "If you do this, we will punish you." They don't want to be punished so they don't do it.
2) It gets rid of some of them. Lock a criminal up, they can't go and commit their crimes. For those that won't be deterred, you simply remove their ability to cause problems.
So while not perfect, it is worthwhile. It is also really the only thing you can do. There is no way to have a perfect moral code that prevents crime. Reason is even if you had such a code, and if everyone were taught it all their life, you'd get the scoiopaths who just don't care. They really don't have morals like most people. They can't empathize with others so all they care about is themselves. Morals won't work for them.
Anything involving humans as they are now will not be perfect. That doesn't mean we shouldn't do the best we can.
People have god-given frailties, which scammers EXPLOIT by victimizing people's blind spots or weak points. Your post blaming the target of BlueHippo fraud was insensitive and cloddish. But you will mature over the next few years, and become more aware that humans who are *average* or even *below average* still deserve our respect. You, too, have your blind spots and two Achilles heels.
Wendy / the Darwin Awards