By reverse-engineering how Ticketmaster and AXS actually make their electronic tickets, scalpers have essentially figured out how to regenerate specific, genuine tickets that they have legally purchased from scratch onto infrastructure that they control. In doing so, they are removing the anti-scalping restrictions put on the tickets by Ticketmaster and AXS.
EDITED TO ADD (7/14): More information.
Sidebar photo of Bruce Schneier by Joe MacInnis.
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