Groundbreaking articles on the extent of FTID Fraud
Apparel retailer PacSun noticed a sharp increase in returns of online purchases earlier this year, including one customer who had returned some 250 orders worth $24,000.
Al-Maarej and his staff of “professional refunders” indicited for their FTID scheme.
A UMiami student had been charged with orchestrating a cyberscam that allegedly cost retailers millions of dollars
Amazon says a group is responsible for the theft of 10,000 items through fraudulent refunds.
The company is also looking at ways to better scrutinize returned packages sent back to its warehouse.
The online retailer said that a shadowy organization bribed Amazon employees to help carry out fraudulent refunds of expensive electronics, luxury goods, and gold.
Last summer, online cookware brand Made In saw customers’ requests for refunds nearly double in terms of dollar value in just a month. Soon after, instead of returned merchandise, empty envelopes and boxes filled with junk, like plastic toys, began to show up at Made In’s fulfillment center.
FTID fraud requires sophisticated hacking to produce manipulated shipping labels that can spoof the carriers’ delivery systems.