Selling genuine activation labels (certificate‑of‑authenticity stickers) separately from licensed software can be scaled into multimillion‑dollar fraud by exploiting gaps in OEM and reseller controls and payment rails. Enforcement action shows prosecutors can trace wire transfers and treat such arbitrage as criminal trafficking rather than simple piracy.
— Highlights a recurring vulnerability in software licensing and payments that could push regulators, platforms, and payment processors to tighten controls and liability rules.
Heidi Richards bought tens of thousands of Microsoft COA labels from a Texas supplier (2018–2023), wired $5,148,181.50 during the scheme, and was sentenced to 22 months and fined $50,000.