Returned the product — lost everything: how return fraud schemes work

The growth of online commerce has led to an increase in cases of return fraud. Dishonest buyers and sellers use loopholes in the product return system to gain benefits. This harms both online stores and honest customers.

Return fraud

Some buyers abuse return policies by applying different schemes:

1. Product substitution – the buyer orders an expensive original product, but sends back a cheap copy or equivalent upon return.
2. Temporary use – electronics, clothing, accessories are bought, used for a short period, and then returned as unused or faulty.
3. Fake defect claims – the buyer intentionally damages the product to demand a full refund.
4. Fraud with digital goods – after activating a code or software product, the client claims it is non-functional and demands compensation.
5. Filing returns on fake orders – fraudsters use fictitious receipts or fake purchase data to get money for non-existent returns.

These schemes lead to financial losses for stores and increased prices for honest buyers.

Fake claims against sellers 

Some buyers use the review system and warranty obligations to obtain compensation:

• Accuse the seller of selling a fake – claim that the product does not match the description, even though they received the original product.
• Demand compensation by threatening negative reviews – blackmail stores, achieving partial or full refunds.
• File returns on other people's orders – gain access to other people's purchase data and demand money for supposedly returned goods.
• Distort facts about the product – photograph the product at the wrong angle or in poor lighting, proving it arrived damaged.

Many marketplaces protect buyers by automatically satisfying their claims, making fraudulent schemes more common.

Return scams on marketplaces

Large trading platforms often face various fraud schemes related to returns:

1. Using multiple accounts – one profile orders the product, another processes the return with fictitious data.
2. Returning empty boxes – the store receives a sealed package, but there is no product inside.
3. Falsifying damages – the buyer presents photos of allegedly spoiled goods and demands a refund.
4. Claims of order mismatch – the fraudster claims they received the wrong product, even if everything matches the description.

These schemes force marketplaces to compensate for losses, ultimately affecting prices for honest buyers.

Fake money returns 

Some fraudsters do not return the goods but use schemes with fictitious transactions:

• Using fake receipts – send the store operator fictitious payment confirmation and demand a refund.
• Cancelling the transaction through the bank – after receiving the goods, the buyer disputes the payment, claiming they did not make the purchase.
• Contacting support with a false complaint – claim that the package was not delivered and demand compensation.
• Manipulations with payment systems – use vulnerabilities in return systems to get money back while keeping the product.

How sellers deceive buyers 

Some online stores and sellers also use unscrupulous schemes, complicating the return of goods:

1. Deny refunds – cite technical problems or artificially delay the process.
2. Sell defective goods – send knowingly faulty items, knowing the buyer cannot return them.
3. Inflate return costs – introduce additional fees for processing the request.
4. Ignore customer requests – stop communicating after selling the product.

Such schemes also harm consumers, forcing them to seek alternative ways to protect their rights.

Warranty scams in online stores

Some stores manipulate warranty obligations, creating the illusion of reliability:

• Impose "extended warranty" – sell a service that in practice provides no protection.
• Refuse warranty service – require a receipt or documents the buyer does not have.
• Charge for diagnostics – take money for checking the product, even if the breakdown is due to a manufacturing defect.
• Provide false return conditions – claim that the warranty is valid but do not actually fulfill obligations.

Conclusion 

Fraudsters in e-commerce use various schemes: fake claims, return scams, product substitution, and fake payments. In turn, some sellers also use unscrupulous methods, complicating product returns. Strengthening control, checking applications, and introducing stricter rules help minimize losses and protect both buyers and sellers.