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Amazon Says It is Investigating Claims That Its Employees Are Taking Bribes To Sell Internal Data To Merchants To Help Them Increase Their Sales on the Website (wsj.com)

Amazon.com is investigating internal leaks as it fights to root out fake reviews and other seller scams from its website, the company told WSJ. From the report: Employees of Amazon, primarily with the aid of intermediaries, are offering internal data and other confidential information that can give an edge to independent merchants selling their products on the site, according to sellers who have been offered and purchased the data, brokers who provide it and people familiar with internal investigations. The practice, which violates company policy, is particularly pronounced in China, according to some of these people, because the number of sellers there is skyrocketing. As well, Amazon employees in China have relatively small salaries, which may embolden them to take risks. In exchange for payments ranging from roughly $80 to more than $2,000, brokers for Amazon employees in Shenzhen are offering internal sales metrics and reviewers' email addresses, as well as a service to delete negative reviews and restore banned Amazon accounts, the people said.

Amazon is investigating a number of cases involving employees, including some in the U.S., suspected of accepting these bribes, according to people familiar with the matter. An internal probe began in May after Eric Broussard, Amazon's vice president who oversees international marketplaces, was tipped off to the practice in China, according to people familiar with the matter. Amazon has since shuffled the roles of key executives in China to try to root out the bribery, one of these people said.

35 of 56 comments (clear)

  1. Corruption in China?!? by elrous0 · · Score: 3, Funny

    That doesn't sound right.

    --
    SJW: Someone who has run out of real oppression, and has to fake it.
    1. Re:Corruption in China?!? by mikeiver1 · · Score: 1

      My thought exactly. They are a country of laws and would never think of doing such things...

    2. Re: Corruption in China?!? by hey! · · Score: 5, Insightful

      Latest thing I read about was Chinese counterfeit bike helmets flooding ebay. They look like the real thing on the outside, right down to the stickers on the outside, but the crack apart like an eggshell in the standard drop test.

      This is a country where makers of infant formula adulterate their products with cheap and toxic ingredients like melamine. Even though it was a huge scandal back in 2008, counterfeit formula remains a huge problem because the country's crony capitalist system is unwilling to enforce serious regulation. The problem doesn't exist in Hong Kong, which has to limit the cross border purchases of formula from Shenzen otherwise there wouldn't be enough formula for Hong Kong families.

      The reason China is so dysfunctional when it comes to protecting consumers or the rights of non-Chinese companies is that its government sees its job as promoting Chinese business interests, and its senior politicians have close family ties to those interests. China regularly makes public examples of low level officials, or officials who are on the political outs, but the whole concept of the government as working hand-in-glove with business interests is corrupt.

      Again contrast this to Hong Kong. Hong Kong is one of the least corrupt societies in the world, with government corruption indices that put it on par with Belgium or Iceland and significantly less corrupt than the US. China as a whole ranks down near Albania.

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    3. Re: Corruption in China?!? by Anonymous Coward · · Score: 1, Insightful

      The reason America is so dysfunctional when it comes to protecting consumers or the rights of non-American companies is that its government sees its job as promoting American business interests, and its senior politicians have close family ties to those interests. America regularly makes public examples of low level officials, or officials who are on the political outs, but the whole concept of the government as working hand-in-glove with business interests is corrupt.

      FTFY.

  2. Not a matter of data privacy by Rosco+P.+Coltrane · · Score: 3, Insightful

    The only thing Amazon is pissed of at here is that they're not the ones turning a profit selling the metrics. It's just a matter of employees stealing and reselling company property. That's all. The story is no different from (and no more interesting than) McDonald's employees cooking and selling fries for themselves.

    --
    "A door is what a dog is perpetually on the wrong side of" - Ogden Nash
    1. Re:Not a matter of data privacy by pete6677 · · Score: 1

      Exactly. Bezos gets really pissed off if anyone makes money on Amazon operations aside from himself.

    2. Re:Not a matter of data privacy by Curunir_wolf · · Score: 1

      The only thing Amazon is pissed of at here is that they're not the ones turning a profit selling the metrics. It's just a matter of employees stealing and reselling company property. That's all. The story is no different from (and no more interesting than) McDonald's employees cooking and selling fries for themselves.

      It is a bit different, actually. Sharing data doesn't cause shrinkage, so the company isn't really losing money, here, like McDonald's does when fries go missing.

      --
      "Somebody has to do something. It's just incredibly pathetic it has to be us."
      --- Jerry Garcia
    3. Re:Not a matter of data privacy by Anonymous Coward · · Score: 1

      profit selling the metrics

      You can bet Amazon will squash this right quick. Meanwhile counterfeit products, astroturfing and all manner of other scams are perpetrated endlessly and Amazon can't seem to make a dent in any of it...

      Amazon could deal with this easily and quickly; just make the market data readily available and inexpensive for everyone and the "problem" vanishes.

    4. Re:Not a matter of data privacy by swillden · · Score: 1

      The only thing Amazon is pissed of at here is that they're not the ones turning a profit selling the metrics. It's just a matter of employees stealing and reselling company property. That's all. The story is no different from (and no more interesting than) McDonald's employees cooking and selling fries for themselves.

      The interesting part is that Amazon employees have access to the data. Why is that? Why does any employee have access to any user data that they don't directly need to do their job? Customer service reps should only be able to access data for individual accounts, not bulk data. Engineers building the systems should have access to no user data at all. System administrator access should be split: Most sysadmins should have access only to encrypted data, but not the keys used to decrypt it. The admins that store and manage the encryption keys should have no access to user data. In the rare cases where someone does need access to both keys and data (or to explore the RAM of running production systems; this includes crashdump analysis), everything they do should be audited by someone from a separate organization with no connection to the admin doing the work -- and the auditors should be randomly audited as well.

      The first rule of securing corporate data is to understand that insiders are the primary threat. Not because they're likely to be dishonest; if you hire carefully and treat them well, they overwhelmingly won't be. But risk is the confluence of a set of factors, including motivation, skills and access. The group of people with the best skills and the most access are your employees, making them the primary threat. Plus, if you defend effectively against insiders, outsiders have almost no chance.

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    5. Re:Not a matter of data privacy by MtnDeusExMachina · · Score: 1

      I disagree. It disturbs Amazon the same way that it disturbs all the rest of us: Cheating and lying by sellers is against the interests of all. Seller beware!

  3. How Dare They Do This!!! by Anonymous Coward · · Score: 1

    Introducing Amazon Prime Analytics - This soon to be released Amazon monthly service will provide third part sellers deep insight into Amazon sales metrics and allow sellers to increase their sales for only $500/month.

    Sign up for Amazon Prime Analytics today.

  4. more likely??? by arbiter1 · · Score: 1, Funny

    Amazon is mad that they aren't getting a cut of the bribes cause the sellers are bypassing them.

  5. Typical by DNS-and-BIND · · Score: 5, Interesting

    This is precisely the sort of thing that workers do in China. It's funny, as I read the summary I thought "Chinese culture is spreading to America?" only to find out it was indeed in China. Yeah, the workers are paid shit and view it as their obligation to make money however they can. Men in particular are viewed as pack mules whose job it is to make money for an entire family. The family ruthlessly badgers the man to make more, make more, make more. When he makes more, they spend more. It never ends.

    When he can't make enough in salary, they badger him to - not exactly steal? But use whatever position he has to utilize the employer's resources to make money for his family. Selling data is right up this alley. You can't even call it theft because nobody lost anything. It's win-win: the merchants sell more, the worker makes money he turns over to his family, the family can afford to purchase status symbols that make them look good in the eyes of people they know. This is actually a "good" case because nobody got hurt. Typically in a situation like this some middle manager substitutes shoddy materials in a product and pockets the difference, which can and does result in harm to real people.

    --
    Shutting down free speech with violence isn't fighting fascism. It IS fascism!
  6. A well paid workforce is more resistant to bribery by Spinlock_1977 · · Score: 1

    A well paid workforce is more resistant to bribery. Not impervious, of course, but a least somewhat resistant.

    --
    - The Kessel run is for nerf herders. I can circumnavigate the entire Central Finite Curve in a lot less than 12 parse
  7. Amazon pay by Curunir_wolf · · Score: 3, Insightful

    As well, Amazon employees in China have relatively small salaries, which may embolden them to take risks.

    Not sure why I have to point this out, but the US employees are in the same boat. Plus, Amazon treats them like crap.

    So no sympathy for Amazon in this - it's of their own doing. When you know your employer is raking in big bucks and only dropping you crumbs, you tend to want to find ways to cash in yourself. Amazon does it themselves - these guys just want in on the deal.

    --
    "Somebody has to do something. It's just incredibly pathetic it has to be us."
    --- Jerry Garcia
    1. Re: Amazon pay by Curunir_wolf · · Score: 1

      the Chinese have, for literally centuries, been known as the "Jews of Asia"

      Wish i could upvote 5 times

      Because you're a racist anti-Semite too?

      --
      "Somebody has to do something. It's just incredibly pathetic it has to be us."
      --- Jerry Garcia
    2. Re:Amazon pay by swillden · · Score: 1

      Not sure why I have to point this out, but the US employees are in the same boat. Plus, Amazon treats them like crap.

      Is this true of the office workers who might have access to bulk data? The stories about low pay and bad work environments have all been about people working the warehouse floors. Judging by the job offers from Amazon that have come my way, what you say isn't true of professional and managerial positions.

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    3. Re:Amazon pay by kingbilly · · Score: 1

      "They can't be mere drones, either, because access to that data is undoubtedly restricted to the ranks of managers and above."
      I've been dealing with Amazon for 8 years. Trust me, they are drones. Spend some time on the seller forums.

      A glaring example of this from earlier this year is when a seller called in to get help with a policy issue. The person "at" Amazon wound up using the Amazon forums and unknowingly cited a forum post from the caller themselves as an answer.

      If you see anything online about Amazon Customer Service being outsourced, note that isn't limited to buyer interactions. It is the entire marketplace platform. People who can end your business of multiple employees, because they are in fact drones who don't understand left from right.

    4. Re:Amazon pay by thomst · · Score: 1

      kingbilly responded

      I've been dealing with Amazon for 8 years. Trust me, they are drones. Spend some time on the seller forums.

      A glaring example of this from earlier this year is when a seller called in to get help with a policy issue. The person "at" Amazon wound up using the Amazon forums and unknowingly cited a forum post from the caller themselves as an answer.

      If you see anything online about Amazon Customer Service being outsourced, note that isn't limited to buyer interactions. It is the entire marketplace platform. People who can end your business of multiple employees, because they are in fact drones who don't understand left from right.

      The people who answer the phone are not managers. Most of the time - and this goes for basically every tech company across the board - they are, indeed, drones, reading from a script, without the authority to wipe their own butts.

      And that's exactly my point ...

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    5. Re: Amazon pay by thomst · · Score: 1

      When an AC responded:

      Wish i could upvote 5 times

      To my post as a whole, Curunir_wolf took the following quote out of context:

      the Chinese have, for literally centuries, been known as the "Jews of Asia"

      Then sneered:

      Because you're a racist anti-Semite too?

      You're an Olympic-quality conclusion-jumper.

      You also neatly managed to dodge my point - so, congratulations on achieving the Full Slashdot.

      What I stated about the historical characterization of Chinese business practices (which is not exclusive to the West) is fact.

      Just because I happen to have read history, does not mean I approve of such characterizations, however commonplace they once were. I have neither sympathy nor patience with bigotry of any stripe.

      I'm pretty intolerant of self-righteousness, however ...

      --
      Check out my novel.
    6. Re: Amazon pay by Curunir_wolf · · Score: 1

      congratulations on achieving the Full Slashdot.

      :) Thanks!!

      Just because I happen to have read history, does not mean I approve of such characterizations, however commonplace they once were.

      Still, it was a good quip, wasn't it? I mean, I don't get setups for those kinds of digs very often. I thought that came out pretty sharp! So thanks for that.

      Rule 10 Be precise in your speech

      --
      "Somebody has to do something. It's just incredibly pathetic it has to be us."
      --- Jerry Garcia
  8. Quis custodiet ipsos custodes? by sehlat · · Score: 2

    Latin is no longer widely used, but the ancient Romans weren't stupid.

  9. Re:A well paid workforce is more resistant to brib by alvinrod · · Score: 1

    I'm not sure that's necessarily true. Wall Street is rife with insider information sharing and they make some exceptionally high salaries. I suspect that it probably has to do more with relative salary and that even if you make good money, if someone else at the company is making a lot more than you, you're going to feel as though you're being shorted and might look for other ways to supplement your income. Individual personality probably factors in heavily as well. There are some people (see Wall Street) who are so immoral that it doesn't matter how much they make when there's an opportunity to make just a little bit more. Culture could play some role as well.

    If you want to stop problems like this, limit access to the data and make sure that there's an ability to log access and audit usage in order to look for strange patterns of behavior. Most corporations would rather just sweep things like this under the rug, but cooperating with the government to prosecute the kind of people who engage in that behavior and seeing them land long prison sentences instead of slaps on the wrist would help curtail it as well. Of course the upper management and C-level executives would never want to set that kind of precedent.

  10. Of course by Bobrick · · Score: 1

    Treat and pay them fairly and you'll see a lot less of this. They have bills to pay, gotta make ends meet.

  11. Re:A well paid workforce is more resistant to brib by west · · Score: 1

    Indeed, the big problem with a workforce who know they're entirely disposable (and are paid like that) is that they can probably pick up an equally bad job elsewhere. They essentially risk nothing when indulging in some low level corruption (since companies almost never prosecute for fear of exposing the problem) and it's quite clear there's no loyalty running either direction, so there's little emotional cost to "betraying" their employer.

    But the same holds for society in general. You want to ensure that people at have at least some stake, both financially and emotionally in being "part of the team".

  12. Re:A well paid workforce is more resistant to brib by EvilSS · · Score: 1

    A well paid workforce is more resistant to bribery. Not impervious, of course, but a least somewhat resistant.

    So, you think we need to pay our politicians MORE MONEY?

    --
    I browse on +1 so AC's need not respond, I won't see it.
  13. Why would you build shit in China by Anonymous Coward · · Score: 1

    Say you are a French Company building quadcopters using cheap Chines labor. Before the design is finalized the plans will be in the offices of a Chinese competitor who will out class your product and build it Cheaper.

    Chines are loyal to Chines. The rest of the world should follow their lead. It it cheaper in the short term to build in China. In the long run you are mortgaging your future. There is something seriously wrong if it is cheaper to build shit 12000 miles away and float it over an ocean in a barge leaking all kinds of low grade petroleum than it is to build it locally...

    But I'm an cis gendered entitled communist Nazi racist who hates transgendered immigrant canadian geese so you would expect such low class offensive opinion from me.

  14. Re:A well paid workforce is more resistant to brib by AmazingRuss · · Score: 1

    Desperate people do desperate things.

  15. Expected by nehumanuscrede · · Score: 1

    This is a risk you run if you underpay your employees as they become easy targets.

    An outside source offers any of your employees half of their yearly salary if they'll do them a tiny ' favor ' and of course they're going to find someone who will jump on it.

    Especially dangerous for all of your outsourced / offshore employees where you're paying them $20 a day.

    Offer one of them $10k and they'll do anything you want.

    Think about that when you outsource the positions who have access to critical or sensitive parts of your network.

  16. " nobody got hurt"? by Anonymous Coward · · Score: 3, Insightful

    > This is actually a "good" case because nobody got hurt.

    From the summary:

    > a service to delete negative reviews and restore banned Amazon accounts

    So people now buy dangerous, shoddy goods, believing them to be high quality. And nobody got hurt?

  17. Re:A well paid workforce is more resistant to brib by techno-vampire · · Score: 1

    True, but "well paid" is relative and depends on where you're talking about. A salary that would be considered good in St. Louis, Denver or Boston would probably be considered inadequate in San Francisco, Seattle or New York both because the cost of living is so badly inflated and the average salary is jumped up to match.

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  18. Re:The bottom line by Kazoo+the+Clown · · Score: 1

    Yes, employee loyalty doesn't come for free or by threats. Better to rely on self-interest. We're capitalists, after all.

  19. Business as usual, amazons policies are to blame. by gl4ss · · Score: 1

    The chinese probably view it as business as usual, as you sure can't buy consultation from amazon themselves on what you can sell, what exact documents do you need to prove yourself and all that(photos, company registrations, proof of location, house book, hope your dynamic ip or vpn provider was never attached to any other seller and so forth).

    Like, Amazon puts on a face like that they tell you enough on their website, but they really don't and they do that on purpose to battle scammers, but they also screw over legit sellers. Because they really can't be bothered to tell the two apart, it's just too much work.

    SO.. legit high volume sellers will think and resort to paying someone at Amazon to make their account work like it should - REGARDLESS OF IT'S A SCAM OR LEGIT SALES.

    That's why there's huge 3rd party forums and services related to selling on Amazon. Because even legit sellers from Asia have hard time listing their products.

    It's easier to sell counterfeit pirate Nintendo cartridges that are _CLEARLY_ counterfeit on amazon, ebay and etsy than it is to sell shirts that you made yourself and don't infringe on anybody's IP. Same goes partially for ebay. Anyhow, due to it being hard and semi(or fully secret) how your account must look a lot of american sellers can just buy any crap from Asia and throw it on Amazon/Ebay because they're not from Asia.

    Want to sell cheapo sneakers on Amazon that you commissioned from some factory in Thailand, totally not infringing on any trademarks? good fucking luck with that.

    --
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  20. secret laws by astrofurter · · Score: 1

    It's almost like a regime of secret laws (seller regulations) leads to confusion, arbitrary & capricious judgements, and inability to conduct legitimate business without inside connections or bribery. Who knew?!

    Maybe it's time for a new standard in transparency. No more allowing big companies with serious market power - the ability to make or break smaller companies - to impose secret laws on their users. These regulations need to be public - so legitimate businesses can understand & follow them, and so the people can debate whether they are acceptable.

    When a company reaches a certain level of importance and market power, they are no longer "private" in the traditional sense. They have become, de facto, part of the state. "Parastatal" as the academics say. The time is long overdue for some sunlight & democracy in the parastate.

  21. wierd reviews by bugs2squash · · Score: 1

    I do enjoy it when the reviews get to be tongue-in-cheek, there are plenty of examples. But I only just saw the reviews for these apple headphone adaptors which are apparently...

    The best martial art training product...

    An excellent popup tent

    If you like your whiskey neat and your rifles wooden, this ones for you

    I wonder how much you have to pay to get reviews like that

    --
    Nullius in verba