[Minnow]

I know I am not understanding this fully.

Is this correct?

Thieves have access to many neteller members id numbers and secure ids procured (from scammers who buy and sell such databases) due to a "hole" in the merchant software API. This scam was do-able because many merchants stored customers personal nt info on their servers when customers made neteller transactions on their sites rather than from the neteller site.

Scammers are able to access neteller as if they were the merchant 10bet, and enter small requests to neteller using these databases of stolen personal account info, hoping to tap into funded accounts. If the $10+ requests clear, then they know they have a live one, and soon after make a larger request.

(gray area) The stolen funds do not actually go to the 10bet merchant account (?), but somehow are transferred directly to the thieves. The thieves then quickly "launder" the funds by transferring them to poker rooms where they purposely lose as fast as they can to accomplices.

I really don't understand why neteller doesn't freeze transactions from 10bet until they can ascertain that they are legit. They are allowing this to happen by playing dumb and accusing the victims themselves of being sloppy with their person info, ie falling for phishing scams, etc.