November 9, 2023, 10:21 am | Read time: 3 minutes
A user defrauded Amazon of a hefty 330,000 euros through manipulated returns. Instead of iPhones and other ordered devices, he sent packages filled with dirt back to the retailer. He kept the smartphones and still received refunds for the purchases. This scam was made possible by Amazon’s standardized return process.
Millions of people order from Amazon daily, and many return their items for various reasons. As a result, the retailer cannot open and inspect every returned package. Instead, Amazon has implemented a standardized procedure to handle returns. This process is occasionally exploited, in one case to a significant extent.
Amazon Returns: Weighing Instead of Inspecting
When a return arrives at Amazon, the online retailer checks its weight. If it matches the declared contents, the package is stored for resale or eventual disposal. Meanwhile, Amazon initiates the return process, which usually means the customer is refunded for the order.
Due to the high volume of returns, not all packages sent to Amazon can be manually inspected by an employee. Such inspections typically occur only if there are irregularities. A customer from Spain exploited this situation in 2019, defrauding Amazon on a large scale.
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The Scheme: Keeping Goods and Still Getting a Refund
Together with an accomplice, the then 22-year-old Spaniard repeatedly ordered iPhones and other electronic products from Amazon. He meticulously weighed the arriving packages and noted the weight. After unpacking and removing the devices, he filled the boxes with enough dirt to match the original shipment’s weight. He then sent the manipulated package back to Amazon as a return.
What followed was the standard procedure: Amazon registered the return, weighed it, and refunded the customer for the returned goods. Thus, he not only received the money for the order but also kept the merchandise. But that wasn’t all: The Spaniard founded a company through which he resold the obtained products. Through his online shop, he generated additional profit.
Largest Amazon Fraud in Europe
The scheme apparently worked for a long time until Amazon noticed the high number of returns. Due to the high return rate, the online retailer at its Barcelona location inspected all further returns from the customer and his accomplice and discovered the fraud. The two men were arrested.
The lost goods resulted in a loss of 330,000 euros for the company. According to the website Tamebay, which specializes in online retail, this was the largest Amazon fraud in Europe at the time. However, the accused likely made significantly more profit through resale and refunds.