Avoiding Amazon Return Scams – Protect Yourself Today

Amazon return scams are schemes in which people exploit the platform’s return policies to get something for nothing.

These scams include everything from returning fake or broken merchandise to returning items that allow scammers to fraudulently claim refunds.

For small and medium-sized businesses (SMBs) selling on Amazon, these practices can result in substantial lost revenue and increased return logistics go against their business interests.

Even though Amazon has systems to detect fraud, scammers usually find ways around it, hurting sellers’ confidence in the entire system.

Knowing how these scams operate and identifying warning signs will better protect your business from these scams.

What Are Amazon Return Scams?

Amazon return scams are deceptive schemes designed to abuse Amazon’s return policies, usually for monetary profit.

These schemes don’t only impact dishonest sellers—they usually hurt consumers, too.

Fraudsters often contact you through unsolicited emails, phone calls, or text messages impersonating Amazon delivery drivers, representatives, or customer support agents.

Their goal is to scam you. They accomplish this by stealing personal information or by exploiting the return process to get refunds or merchandise improperly.

This issue has grown exponentially. In 2023, U.S. Retail returns reached a staggering $744 billion, demonstrating the widespread abuse of the system.

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Approximately 15% of returns are estimated to be fraudulent or represent system abuse, impacting retailers’ operations and profitability. ​

CBS News

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1. Deceptive Tactics Exploiting Return Policies

One of the most popular scams includes empty box returns, where the scammer returns nothing but an empty box or packaging that they claim contained the product.

Another frequent method is item swapping—returning a similar but lower-value item to cash in on the difference.

False damaged item claims are also common Amazon return scams. Buyers claiming that an item arrived damaged in order to receive refunds are prevalent.

Serial returners, those who regularly abuse policies by buying and returning products, rob sellers of revenue and resources while undermining the value of their services.

In addition, scammers have earned money by reselling items after getting refunds, adding further losses for merchants.

2. Impact on Sellers and Marketplace Integrity

Sellers experience significant financial loss, delay, and harm to their reputation.

Red flags to look out for from suspicious buyers are repeated returns, evidence of package tampering, or lack of communication.

These scams erode confidence in the marketplace, harming legitimate sellers and buyers alike.

3. Goal: Illegitimately Obtain Refunds/Goods

Scammers want to receive refunds while failing to return goods.

Some mitigation efforts involve providing accurate product descriptions, actual quality images, video documentation of packaging, and actively monitoring return patterns.

4. Evolution of Return Scam Techniques

To combat these issues, Amazon uses advanced fraud detection systems.

They actively monitor patterns of return activity and investigate all claims, providing well-defined seller protection policies.

Common Types of Amazon Return Scams

Even though Amazon is inheriting a return system that was intended to engender trust, scammers are using Amazon’s return system to create large pain points for sellers.

That has consequences beyond lost sales, including the higher costs and damage to the consumer relationships gained before the pandemic.

For small and medium-sized businesses, the financial and reputational risks are disastrous.

Here’s a look at the most frequent return scams and what they mean.

Empty Box Returns

The most common one is when Amazon customers return empty boxes or garbage, such as used bars of soap or obsolete cable boxes.

It hurts sellers the most, who end up eating the cost and losing the item alongside the refund total.

To prevent this, it’s important to contact Amazon Seller Support as soon as possible to report any potential scam.

Completing a police report of the incident as well as documenting all evidence of the transaction will further bolster your claim.

If your losses are substantial, you will want to speak with an attorney.

Item Swapping

For example, scammers could decide to return a cheaper product altogether and keep a more expensive item.

This strategy is understandably more detrimental for more expensive items.

Be vigilant against any fake communications that purport to be coming from Amazon.

These might be phishing emails or texts from scammy accounts claiming to be “Amazon Customer Service.

Protect your seller account by never sharing account information and reporting these types of scams immediately to Amazon.

Damaged Item Claims

High-value electronics like the iPhone and MacBook are often targeted with known false or intentional damage return scams.

Fraudsters use generative AI to craft realistic communications or social engineering tactics to pressure sellers into providing refunds.

Even more prevalent are cross-border scams, which boost the difficulty in tracing fraudsters.

Keeping yourself aware of these tactics is the best way to keep your business and your bottom line safe.

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A significant number of Amazon sellers have reported receiving bogus products as returns, including items like TV cable boxes and used soap bars, reflecting the diverse tactics employed in return scams.

​Chargebacks911

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How to Recognize Scam Red Flags

Familiarity with these common warning signs of scams is instrumental in keeping your business safe from potential financial tragedies.

Scammers are always going to find the loopholes in the return process. Knowing these red flags can keep you a few steps ahead.

Suspicious Buyer Behavior

Be leery of buyers who continually request refunds without justification.

Additionally, watch for anyone who claims their items never arrived when tracking shows it was delivered. Such behavior is a sign of refund fraud.

For example, if a customer frequently charges back payments or reports defective goods on expensive orders, take a closer look.

When buyers demand to take the communication off Amazon’s platform, this is a red flag. This practice undermines the meaningful protections that Amazon provides.

Unusual Return Requests

Look out for customers asking for a refund before returning an item.

In addition, watch out for anyone offering inflated rewards, like asking for a partial refund or replacement. If the scammer does not want the buyer to return the item while keeping the money, that is a huge red flag.

Scammers usually go after high-value, hot ticket items too, so make sure that each return request aligns with Amazon’s seller return policy.

Inconsistent Communication

Communications from scammers usually contain bad grammar and spelling mistakes.

Emails or texts that purport to be from Amazon, but use unofficial domains are a huge risk. If they don’t all end in “@amazon.com,” they are phishing scams.

Don’t provide your sensitive information if the outreach feels unusual. Rule #1 — Always authenticate the sender.

Tampered Packaging

Returns with opened or modified packaging can be a sign of scam.

Other common scam tactics include a harmless act of returning an empty product box.

In some cases, they may even return a replica of the actual product you bought.

Discrepancies in Item Condition

Returned items that do not match the original—like missing accessories or altered products—must be noted.

Carefully screen every return to ensure its legitimacy.

Protect Yourself from Return Scams

We often discuss how return scams on online marketplaces such as Amazon really hurt small and medium-sized businesses that sell in these platforms.

As more than 1 in 5 sellers are victim to buyer return scams, it’s important to know how you can protect your business.

Amazon’s increasingly sophisticated fraud detection systems are a big help, but taking proactive measures to protect yourself is just as important.

Implement Detailed Product Descriptions

Better product descriptions lead to more informed customers, which means fewer return scam attempts.

Showcase dimensions, materials used, and how the item functions.

For example, if you’re selling electronics, make it clear what model/size/color or compatibility is needed.

Providing clear details minimizes the chance of customer disputes and helps you defend against return scam claims.

Use High-Quality Photos/Videos

Visuals are critical for capturing attention and reinforcing product descriptions.

Take pictures that include different angles and use scenarios.

Videos showcasing features or even an unboxing experience make it more difficult for scammers to claim misrepresentation.

Document Packaging Process

Taking video of your entire packing process gives you irrefutable proof of the condition and contents of each package.

This is particularly helpful for expensive items.

Filming when accessories like chargers or manuals are added helps dispute missing component claims.

Track Return Patterns

Keep an eye on chronic returners. Routine habits could be a sign of fraud.

Amazon’s performance tools can help you spot these abnormal patterns.

The “Abusive Buyer Report ID” can be reported through Amazon’s reporting tools.

Require Photo Evidence for Returns

Request pictures of damaged items before approving returns.

This prevents fraudulent returns and provides Amazon with evidence if any disputes occur.

Consider Restocking Fees

Restocking fees can help cover the expense associated with return while deterring more casual or fraudulent return attempts.

Read Amazon’s rules to know you’re in the clear.

Report Suspicious Activity

If you fall victim to a fraud, report it to Amazon, the FTC, or USA.Gov.

Indicate, where needed, that you’ll be forwarding proof to law enforcement.

Amazon partners with law enforcement agencies on serious cases.

Amazon’s Role in Preventing Scams

Amazon has built a robust framework to combat return scams, prioritizing technology and transparency to protect both customers and sellers.

Scams may be a serious issue, but Amazon uses a multi-pronged, layered approach to combat them while still protecting the customer experience that makes Amazon so successful.

Fraud Detection Systems

Amazon employs world-class fraud detection systems based on machine learning systems that help detect these patterns.

These systems use billions of data points like purchase behavior, return habits, and account activity to detect and stop harmful behavior before it happens.

For example, if a customer repeatedly claims refunds for high-value items without returning them, the system can alert Amazon’s team for further review.

This proactive approach not only stops millions of dollars in losses before they occur, but creates a level playing field for legitimate buyers and sellers.

Monitoring Return Activities

Each return request is monitored to keep up with the latest product return policies set by Amazon and enforce their guidelines.

Tools such as personalized return labels and tracking systems can assist in confirming the condition of returned goods upon return.

When a returned item is exchanged for a counterfeit product, Amazon’s sophisticated systems quickly spot what’s occurred.

It directly links the fraudulent swap back to the account responsible for it. This type of monitoring helps deter abuse while ensuring a convenient and efficient return experience for our trusted customers.

Seller Protection Policies

Additionally, Amazon offers sellers resources to help them contest these fraudulent claims.

The A-to-Z Guarantee ensures sellers can respond to disputes and present evidence, such as photos of shipped items or delivery confirmations.

This customer-centric yet seller-safeguarding approach is what builds trust across the entirety of the marketplace.

Investigating Suspicious Claims

Looking at Amazon’s own internal research about flagged transaction reviews reveals important insights.

Just as in real-world criminal investigations, these often require comparisons between account information, purchasing patterns and message exchanges to identify contradictions and fraud.

First, customers are incentivized to report scams using Amazon’s self-reporting tool or Message Center, allowing Amazon to take quick action.

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Approximately 19% of Amazon shoppers have admitted to lying to obtain free returns, indicating a notable level of consumer participation in return scams. 

​LinkedIn

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Impact on Sellers and the Marketplace

Amazon return scams hurt legitimate sellers and damage the marketplace.

These scams are usually the result of refund fraud, leading to millions of dollars in damage.

They negatively impact seller operational efficiency and erode the trust and reputation of the platform itself.

Financial Losses for Sellers

Refund abuse is a very serious issue that directly impacts a seller’s bottom line.

When fraudulent returns happen, sellers lose the product, as well as the revenue tied to that sale.

For example, an unscrupulous buyer could say that an item was never received, get a refund and still have the item.

This type of predatory abuse undermines the competitive marketplace.

Truthful sellers have to eat these costs, which pinches their margins and inhibits their capacity to reinvest in their firms.

SMBs have a tendency to feel this pressure in sharper relief, as each loss is harder to bounce back from, making their often more scarce resources.

Increased Operational Costs

Investigating and cracking down on scams requires dedicated time, money, and effort.

Sellers often have to spend additional time and money defending claims. They tighten the types of packaging that allow for excuses of “lost items” in transit and address return policies too.

These operational changes, though critical, add costs, shrinking margins.

For example, sellers might invest in tracking technology or third-party verification services to mitigate risks, which can be costly but essential for protecting their inventory.

Damage to Seller Reputation

A seller’s track record is equally important on marketplaces such as Amazon.

Refund abuse encourages harmful negative reviews or A to B disputes, despite seller adherence to policies. Buyers may misinterpret longer turnaround times on returned items as a negative experience.

In the long run, this erodes seller reputations, impacting their ability to earn customer trust and maintain sales.

Erosion of Marketplace Trust

These scams hurt the confidence consumers and business sellers have in Amazon.org.

Each time refund abuse is committed without any consequences, the platform’s integrity is further eroded and genuine sellers are put at a competitive disadvantage.

Along with visible damage to its brand as a trusted e-commerce marketplace, Amazon takes a hit when buyers game the system to the detriment of legitimate sellers.

Sellers can combat this by redirecting refund requests to Amazon’s official support channels, ensuring policies are followed while maintaining professionalism.

What to Do If You Suspect a Scam

Whether facing these eBay or Amazon return scams, you need to act quickly and knowledgeably to protect yourself.

Understanding the warning signs of a scam not only safeguards your business, it ensures that Amazon has the tools to help you. So, I’ve written out some realistic steps to take when dealing with fraudulent activity.

Contact Amazon Seller Support

The first thing you need to do is contact Amazon Seller Support directly using the contact portal on their official website or within their mobile app.

Refrain from searching through third-party websites or clicking on questionable links, one of the biggest ways scammers redirect you.

Seller Support can assist you in confirming whether suspicious buyer activity has occurred and advise you on the appropriate steps to take.

For example, if you notice unusually high return rates or inconsistent return tracking, they can investigate further on your behalf.

Consistently report fraudulent instances as soon as possible in order to allow Amazon to take appropriate actions to rectify the situation and safeguard your account.

File a Report with Amazon

Amazon wants sellers to report scams directly via their self-reporting mechanisms.

These tools are available from ‘Your Account’ or via the Message Center.

Only use Amazon-owned channels to report, because real communications will never come from an email address that does not end in “@amazon.com.”

This step goes a long way toward getting justice in your case and keeping other people safe from scams.

Gather Evidence and Documentation

One thing to remember is that documentation is everything. Archive return requests, conversations with buyers, and any invoices.

What to do if you think there’s a scam. Evidence of buyers obtaining refunds without returning items charged with fraud can be strong evidence to report to Amazon or take legal action against.

As an example, screenshots of suspicious messages or documentation of received merchandise can offer insight while the investigation is occurring.

Consider Legal Options

If fraud continues or causes major monetary loss, seek legal guidance. Interestingly, one venue most sellers prefer over the FTC to address buyer fraud is small claims court.

Though this scenario is unlikely to happen, understanding your rights can provide an extra layer of protection for your business.

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In 2023, return fraud cost retailers $101.91 billion, marking a 20% increase from the previous year. 

​EMARKETER

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Understanding Impersonation Scams

In today’s rapidly evolving digital threat environment, impersonation scams are on the rise, posing severe risks for small and medium-sized businesses (SMBs) and individual consumers alike.

Fraudsters frequently impersonate Amazon agents as well.

They can impersonate real companies through their emails, phone calls, and text messages to steal your accounts and payment information.

Knowing these tactics and how to react to them is key to keeping your business’s and personal accounts secure.

Recognize Suspicious Communications

Scammers like to impersonate Amazon with fake emails or phone calls. Alarming, fake emails would come through about your account or pending orders.

Look closely at the sender’s address — official Amazon communications will always have the domain “@amazon.com.

Spot Account-Related Scams

In fact, access to account or payment details is a part of nearly 70% of scams.

Scammers may try to get you to confirm personal information or give an OTP. Amazon will never ask you for this information through email or by phone.

Avoid Sharing Account Details

Never provide or input your password, OTP, or payment information.

Fraudsters will often refer to “verification cards” or other language to manipulate you into purchasing gift cards.

No real Amazon employee will require you to make payments through any platform other than their official website or app.

Handle Suspicious Messages

If you are ever getting messages that seem out of the ordinary, do not CLICK the link provided!

Instead of following the prompt, go to Amazon’s website yourself and log in directly to see if anything is wrong.

Report Fraudulent Purchases

For activity you feel may be suspicious, report it right away through Amazon’s designated reporting channels.

When timely reporting occurs, TSPs and other platforms can prevent further misuse from happening.

Verify Messages from Amazon

Always verify suspicious emails or phone calls by looking for “amazon.com” in the email address or web URL.

Watch for Fake Order Alerts

These days, scams are all about texts for fake orders. Mark these messages as spam and do not reply.

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Nearly half (48.8%) of retailers have encountered “wardrobing,” where customers purchase items, use them, and then return them as if unused. Additionally, 44.2% have experienced returns of shoplifted or stolen merchandise.

​1PYMNTS.com

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Emerging Trends in Return Scam

Return scams on digital marketplaces such as Amazon are becoming increasingly inventive.

Scammers are using complex fraud tools and exploiting holes in e-commerce platforms.

These trends greatly impact customer trust and put an out-sized financial burden on the SMBs traversing SMB-hostile marketplaces.

Exploiting Generative AI

Generative AI has quickly become a tool of choice for scammers.

They leverage it to generate super convincing phishing emails, texts, and even phone calls that all look like they’re coming from Amazon.

These phishing texts typically pretend that there’s a problem with their account or a fraudulent order has been placed, exploiting customers’ panic.

In reality, as 2024 data reveals, nearly 50% of all impersonation scams reported to Amazon originate from these tactics.

With AI-generated scripts, scammers can more easily tailor responses on the fly, further complicating SMBs’ efforts to detect fraudulent interactions.

Companies could be victimized by fraudulent return requests backed by AI-generated receipts or purchase order confirmations.

Targeting High-Value Electronics

High-value electronics are still starting material for return fraud. Scammers often return items that were damaged and claim that they came that way.

Alternatively, they can just trade the product out for a knock-off or lesser quality version.

Truckng Depot, an Amazon FBM seller, anticipates the returns fraud to increase by 144% by 2024.

This dramatic increase serves to underscore just how big this issue really is. For SMBs who operate on razor-thin margins, these losses can quickly eat into (or annihilate) profitability.

Sophisticated Social Engineering

Scammers are up to using extensive social engineering tactics as well, sometimes posing as Amazon drivers or customer support representatives.

Almost two-thirds of scams in November targeted on phony account problems, often via text.

Scammers’ favorite channel These retail tactics pull the wool over the eyes of the consumer and the seller, creating a shroud of misinformation that makes way for return scamming.

Cross-Border Scams

Cross-border scams take advantage of different shipping and return policies between areas.

Fraudsters often bypass stricter local regulations by initiating returns from countries with lenient policies, affecting SMBs reliant on international sales.

Key Points to Remember

• Amazon return scams exploit the platform’s return policies, using tactics like empty box returns, item swapping, and false damage claims to gain illegitimate refunds or goods. These scams are hugely detrimental both to honest sellers and to the integrity of online marketplaces.
• Some red flags to look out for would be repeated returns, lack of buyer communication, and opened or tampered packaging. These patterns are usually a dead giveaway for fraudulent behavior.
• Always make sure your product pages have accurate, extensive descriptions along with quality photos, and photograph items being packaged. Analyzing return patterns can further identify suspicious activity.
• Amazon employs fraud detection systems, monitors return activities, and enforces seller protection policies to combat scams and safeguard the marketplace.
• Scammers are getting smarter, employing new tactics such as AI-generated fake reviews and social engineering. The key to avoiding these risks is to stay informed and take a proactive approach!
• If you think you’re being scammed, don’t wait! Contact Amazon Seller Support, report them, and collect documentation to deal with the attacker’s scam accordingly.

Frequently Asked Questions

What are Amazon return scams?

Amazon return scams involve scammers taking advantage of Amazon’s return policies in order to make money.

These return scams usually consist of giving back a counterfeit item, a broken item, an item that’s been used, or no item at all.

How can I identify Amazon return scams?

Watch out for red flags such as the return item not matching what you sold, the same buyer requesting refunds multiple times, or high dollar value returns.

Never assume an opened return package is safe.

What are common types of Amazon return scams?

These scams usually involve returning fake items, or replacing products with less expensive alternatives.

They may even argue they sent back a return when they did not.

Impersonation scams are accelerating as well.

How can sellers protect themselves from return scams?

Sellers can protect themselves by keeping detailed records, inspecting returns, using Amazon’s FBA service, and reporting suspicious activity to Amazon promptly.

What is Amazon doing to prevent return scams?

Amazon implements industry-leading fraud detection systems and proactive policies to ensure that return scams are actively and consistently monitored against.

In addition, they need to give tools to sellers to report and appeal these fraudulent cases.

How do return scams affect Amazon sellers?

Return scams result in lost profits, depreciated stock, and reduced seller feedback scores.

They further pose dilemmas in upholding trust with real buyers.

What should I do if I suspect a return scam?

If you think it’s a scam, act fast.

Document the problem, and provide proof of it to Amazon via Seller Central Seller Dashboard, with documentation such as pictures and product receipts.

The sooner you act, the easier it will be to get the situation resolved.