Online refund scam 

Refund policies have been in place at businesses for as long as there have been bad actors looking to use them. New refund fraud is growing more common and is expected to cost large merchants $25 billion in losses by the year 2020. 


The COVID-19 pandemic merely amplified the already-expanding rate of e-commerce expansion. Companies all across were forced to create or improve their digital products swiftly, and many of them will continue to exist as part of the “new normal.” Scams involving refunds are now more common thanks to more shipping, more couriers, and contactless delivery. 


Refund requests that are fraudulent can be challenging to identify and prove. What you should know about refund scams and how to stop them, along with the global payback, is provided below.


What is the refund scam? 

Although there are many other types of refund fraud, retailers are often most familiar with returns fraud. By returning things that were stolen, tampered with, used, worn, or marked as final sale, dishonest people swindle businesses. These returns are simpler to spot and refute when they take place in person. However, since returns are no longer handled face-to-face and most retail has gone online, misuse cannot be discovered until after the event. This might cause operating difficulties. 

However, a fresh scam has lately surfaced: false refund requests, in which clients assert that they never received an item before asking for a refund. Because they are challenging to spot and generate large financial losses, fraudulent refund scams like refund abuse—where a fraudster claims a package was not received—are becoming an increasingly serious threat to retailers. And in contrast to returns abuse, which is often committed by lone bad actors, delivery-not-received fraud is occurring on a huge scale.

The Faces Behind Refund Abuse

Since the customer and the transaction are both valid, refund misuse might be hard to spot. There are neither fake nor stolen identities. Instead, the victim is frequently both aware of and complicit in the return fraud. The retailer is the primary victim of this crime. 

No product or vendor is off-limits, but these criminals frequently target huge companies that sell expensive goods. There are two methods via which a client commits this offense: 


  • Self-educate. On tough to police open discussion forums like Reddit and Quora, consumers are learning about refund fraud and how to commit it. After making a purchase and receiving the item, the phone customer service complained that the package was either lost or damaged in transit. The customer care agent is committed to finding a timely solution and keeping the client satisfied. So they either ship a replacement or issue a refund. 


  • Use a specialist. Refund-as-a-service is currently a common refund scam offered by professional refunders. In trade for a cut of the profit, a consumer pays a professional to give them advice on what to buy and where, as well as to contact customer care on their behalf to request a refund. Fraudsters are well-versed in the refund procedures of major organizations and know just what to say to customer care representatives to obtain a refund.


Beware of Online Scams

Online dating scams, ransomware attacks, auto trading schemes, and other frauds are all common on the internet. You must stay informed if you want to safeguard yourself from these frauds. In contrast, the global payback recovery agents can help you if you have been the victim of an internet scam in which someone has stolen your hard-earned money and you are unclear about what to do. No matter how much money has been taken, The global payback can investigate your case, identify the con artist, locate them, and help you get your money back, utilizing our cutting-edge recovery techniques.


Stopping the Scam

Regardless of the consumer’s rationale, the actual risk is the simplicity with which they can pick up the strategies on their own or get in touch with a specialized group that has mastered refund fraud. Retailers have traditionally used customer service procedures or training to determine when a refund request is false. However, policies and subjectivity have been found to be ineffectual and run the risk of falsely accusing real customers with good claims. 

Objective data and analytics are now the best lines of protection against refund scams. Retailers can distinguish between valid and fraudulent refund requests in real-time with the assistance of Accertify’s machine learning and user behavior analytics. Our dynamic, risk-based method enables merchants to reliably determine if a refund claim is valid or fraudulent and take the necessary action through an easy-to-implement API: 


  • Authorize the refund 


  • Refund denied 


  • Choose to provide a store credit 


Moving the process online and keeping funds track on your side are the solutions to combating refund fraud. An investigative recovery company called The global payback is filled with subject-matter professionals who can examine your case, compile evidence about your criminals, and find your scammer for you.


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