

Fraudulent Online Returns Cost Retailers Billions
11 snips Sep 13, 2024
In this engaging discussion, Liz Young, a WSJ reporter, delves into the rampant issue of fraudulent online returns that are costing retailers billions. She reveals how scammers are cleverly exploiting return policies through apps and websites. The conversation highlights specific cases and the tough decisions retailers face between satisfying customers and curbing fraud. Young also uncovers shocking tactics, like using bogus receipts, and sheds light on the urgent need for enhanced measures to tackle this escalating crisis in e-commerce.
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Bricks for TVs
- Retailers witness fraudulent returns of various items.
- Examples include bricks instead of TVs and old shoes instead of new ones.
PacSun's Fraudulent Returns
- PacSun, a popular mall brand, experienced a surge in fraudulent returns.
- One customer used multiple emails and addresses to obtain $24,000 in refunds.
Simple Refunds Fraud
- Sajid Al-Muran, a man in his 20s, ran a Telegram channel for fraudulent returns.
- He defrauded over 50 companies, resulting in $3.9 million in losses.