A sophisticated ticket-reselling operation has been busted by federal regulators for exploiting Ticketmaster’s security protocols and snagging hundreds of thousands of concert tickets.

The Federal Trade Commission (FTC) revealed a shocking scheme where a group used advanced technological tactics to bypass ticket purchasing limits. By creating networks of fake accounts, repurposing credit cards, and using IP address masking software, they managed to purchase 321,286 tickets across 3,261 live performances between June 2022 and December 2023.

The most brazen example involved Taylor Swift’s “The Eras Tour,” where the group used 49 different accounts to purchase 273 tickets for a single Las Vegas show - dramatically exceeding Ticketmaster’s six-ticket limit. They subsequently sold these tickets for a whopping $120,000.

To expand their operation, the group even recruited friends, family, and paid strangers to create Ticketmaster accounts. They distributed flyers promising easy money, offering $5 for account creation and additional funds for obtaining verified fan presale codes.

The total financial impact is staggering: they purchased tickets for approximately $46.7 million and resold them for $52.4 million, netting around $5.7 million in profits. Their primary brands included TotalTickets.com, TotallyTix, and Front Rose Tix.

This revelation comes amid ongoing scrutiny of Ticketmaster’s practices. The Justice Department and FTC have already filed a lawsuit against LiveNation, Ticketmaster’s parent company, alleging monopolistic behavior in the live events industry.

The FTC is now seeking unspecified damages and civil penalties against the three key individuals behind this elaborate ticket-scalping scheme. Their actions not only circumvented purchasing regulations but also potentially denied genuine fans the opportunity to attend these highly sought-after concerts.

As the investigation unfolds, this case highlights the ongoing challenges in maintaining fair ticket sales in an increasingly digital marketplace.