Microsoft employee earned $10 million using a loophole in the payment system

Microsoft employee earned $10 million using a loophole in the payment system

A Microsoft employee fraudulently earned more than $ 10 million from a software bug over the course of two years.

Ukrainian Vladimir Kvashuk joined the company in 2017 and was engaged in testing the company’s payment systems. As it turned out, there was a flaw in the software. Usually, the system sees that test purchases are generated by the corresponding accounts, so no items are sold or shipped in such cases. However, this did not work with Xbox Gift Cards.

Kvashuk discovered that when placing an order for a gift card from his test account, he received valid 25-digit codes by mail. Instead of informing Microsoft about it, Kvashuk began selling the codes obtained in this way, eventually creating an entire system for obtaining and selling codes. He hid his manipulations by means of VPN, fake profiles and software created by him.

Ukrainian employee robbed Microsoft of more than $ 10 million using a loophole in the payment system

As a result, over two years, Kvashuk generated 152,000 gift cards, earning $ 10.1 million on this. At the time of his arrest, he lived in a mansion by the lake and, according to his own records, planned to buy a yacht, a seaplane and an even more expensive house.

Kvashuk pleaded not guilty, but was sentenced to 9 years in prison with the need to pay Microsoft $ 8.3 million. He also faces deportation to Ukraine.

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