E-commerce Fraud

The Deceptive Depths of E-commerce Fraud:

• Refund and Returns: Requesting for refunds after receiving the products or claiming empty packages.

• Credit Card Capers: Stolen credit card information is a classic weapon. Fraudsters use illegally obtained numbers to make unauthorized purchases, leaving merchants with a financial burden.

• Phishing Phantoms: Deceptive emails or messages mimicking legitimate companies lure unsuspecting users into revealing personal or financial details, creating a gateway for fraudulent activity.

• Account Takeovers: Weak passwords and malware can grant criminals access to existing accounts, allowing them to steal products or make fraudulent purchases.

• Friendly Fraud: This occurs when a customer disputes a legitimate transaction with their bank, often to avoid paying for the goods. While not always malicious, it creates problems for businesses.

• Chargeback Abuse: Fraudsters exploit loopholes in chargeback policies to claim they never received goods or services, forcing merchants to refund stolen items.

• Refund Fraud: Returning stolen or counterfeit goods for a full refund is a deceitful tactic employed by some fraudsters.

Combating E-commerce Fraud:

• Evidence Gathering: We can help clients collect evidence like photos of received items, communication records, and shipping information. This strengthens their case when reporting fraud to authorities or pursuing civil action.

• Fraudulent Refund Prevention Tips: We can provide clients with resources and best practices to identify and prevent fraudulent refund requests. This includes educating them on red flags like inconsistent return addresses or requests for immediate refunds without returning the product.

Reporting Fraud:

• Law Enforcement: We can guide clients on reporting the incidents to the appropriate law enforcement agency. This may involve filing a police report or contacting the Federal Trade Commission (FTC) depending on the situation.

• Platform Reporting: Encourage clients to report the fraudulent activity to the e-commerce platform they used. This helps the platform track bad actors and potentially ban their accounts.

•  However, we help clients consult an attorney specializing in e-commerce fraud. They can advise on potential legal recourse, such as filing a civil lawsuit to recover damages.

 We also help our clients contact an employer directly. They can file a police report and include the perpetrator’s employment information. Law enforcement will then contact the employer during their investigation.

Additional Resources:

• Federal Trade Commission (FTC): https://www.ftc.gov/
• National Consumers League: https://nclnet.org/