kane

That isn't what he was doing.

Here is an example that might not be 100% accurate, but still fits the basic idea.

In my town there is a grocery store that has a rewards card. When you shop you slide your card through the card reader and they track your purchases then every 3 months they give you rewards based on how much you spent.

So lets say they hired you to promote them. Your job is to go out and give people rewards cards. These cards will have a piece of code in them that when swiped will tell the stores computers you sent this person to them and you will get a commission on the sale.

So if you stand outside a high school football game and hand a card to everyone that leaves or enters the game you are basically making splogs. You are giving away a lot cards, but likely not making a lot of money and what money you do make you did earn because you did hand the card out.

Then one day you devise a way to use your laptop and an antenna that will broadcast at a frequency that can communicate with the strip on the card. You make it so that whenever you send out this broadcast anyone within range who has one of those cards will now have your code embedded on it. You didn't give them the card, you just, unknown to them, modified their card so you get a commission on every sale. Now you can just sit in the parking lot and broadcast a few times per day and rake in the sales without doing anything. That is fraud and that is basically what this guy was doing.