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With GPS spoofing, the company started noticing a high level flaw with the scammers' tactics. Too close to the sunīecause of how often scam attempts happen, Uber needs to rely on machine learning to help it deal with the scourge. "People are literally trying to defraud the platform every single day," said Melanie Ensign, Uber's security spokeswoman. The company reimburses the credit card owner, as well as the driver who could have lost a day's earnings because of the fraud. Uber ends up covering all the losses, if the scam is reported. But once the credit card is reported stolen, both the driver and the card's owner end up losing money, not the thief. The scammer keeps the victim's money and uses a stolen credit card to order the ride through Uber's app. The victim thinks it's a harmless deal and pays the third party - the thief - instead of using Uber directly.
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In some cases, Uber drivers would use it to bump up rider fares, according to Quartz.Īnother widespread scam, Uber said, happened through fake discount agents.įraudsters go on messaging boards, or chat apps like WeChat, offering discounts on rides. The GPS spoofing scam was so prevalent that thieves would provide instructions on the Dark Web, Motherboard reported. That might sound like a lot of driving, but for a scammer who can finish each ride by tapping a few times on the phone, it's an easy $500. The company offers bonuses like an extra $500 if you finish 125 trips in one week. If they do it enough times, the scammers also end up stealing money from Uber's incentive programs. Scammers take as many trips as possible, Chen said, to suck out all the value quickly. It's a way to pocket money via stolen credit cards, essentially using Uber as a makeshift money laundering service. "They can sit at home and use the app to simulate a trip, and from Uber's side, everything looks like a real trip," Chen said.