First saw this about 5 or 6 years ago, lol. Like any good confidence scam, it relies on the person's greed to pull it off-and in most cases greed wins over common sense, hence-it still works (tho the question remains-why would you want noob items?)
So just hope nobody wanders by and pk's the char you have "hidden" outside-in which case you really don't gain much-only reason I see is to prevent mobs from maybe killing the other toon.