How do crooks make money by ordering physical goods with a stolen credit card?

There's a couple different ways this could work, and there's a number of other questions here asking about the other side of this.

For a few examples:

• How are re-shipping scams profitable? - Semi-legit purchase (in the sense that they would like to actually get the item if possible) on a stolen card to someone who forwards it to the probably-overseas purchaser.
• Unexpected goods delivery - is this a scam, and what kind of scam? - Brushing scam: Ordering to random addresses just to be able to post reviews
• Dropship scammer hasn't billed yet - what's going on here? - A fake company filling real people's orders with junk products, to bill them for more than they paid for the item

It's hard to say which of these, if any would be applicable here, and it could be something else altogether. But this should at least give you an idea of what the possibilities are.

They know exactly when and where the packages will be delivered and steal them from the porches of wherever they have them shipped. Since the person living there wasn't expecting the package they are unlikely to report the theft.

This could be the racket they are running:

1. Create a fake online shop, advertising products also sold in regular online shops, but much cheaper.
2. Take orders from unsuspecting customers.
3. Buy the goods they ordered from those other shops. Enter your customer's address as shipping address on the checkout page, so the goods go directly to them. Pay with stolen credit card numbers.

Result: Happy customers receive what they ordered and send you clean money. Yes, the goods arrive in boxes from a different online shop and with wrong invoices, but most customers won't notice. And those who do notice probably don't care. Well, until law enforcement officers show up to ask them questions about buying stuff with stolen credit card numbers. Then you better make sure you can't be tracked down and have your next fake shop ready for opening.

Since there are at least three recipients involved, you have a reasonably sized operation. They don’t steal just your credit card, but hundreds others. So there are three locations receiving hundreds of shipments without paying, and that is enough to run a small business.

They will have a business where normal customers can order things. So if I ordered three items, they order the same three items shipped to one of their addresses, they repackage it and send it to me. I’m actually paying the full price or a little bit less, so that’s how they make their money.

If I ordered three items for $45 which is a bit cheaper than what a genuine retailer charges, they pay $50 with your stolen credit card, zero cost to them, and take my $45.

They will have to change their locations from time to time, they may actually give refunds or replacements for broken items, depending on how much they value their online reviews.

So they have the same income as a small store without the cost.

Deep trouble for the buyer. Read this:

https://krebsonsecurity.com/2024/01/canadian-man-stuck-in-triangle-of-e-commerce-fraud/

Slightly different; no stolen credit card but sad someone hacking into a woman’s Walmart account. Victim has been charged with fraud, has now a criminal record and lost his job.