The scourge of "refunds": diving into the heart of non-receipt parcel scams
The ever-growing e-commerce sector is also faced with an increasingly widespread scourge: the "refund". The aim is simple: to obtain an undue refund for an online purchase by simulating non-receipt of a parcel. It's a growing trend that threatens the financial viability of online sales platforms. In this article, we take a closer look at the mechanisms of this scam, its consequences and the means of combating it.
What is a refund?
The "refund" is a technique that consists of deceiving an online seller, either directly or through a marketplace, by claiming not to have received a parcel. This enables them to obtain a refund while keeping the product. To obtain this refund, fraudsters often use false arguments, and may even go so far as to simulate proof of non-receipt.
Fraud mechanisms and techniques
Fraudsters have developed an arsenal of techniques to carry out their scams, and don't hesitate to spread them via social networks and instant messaging. The latter are also regularly used to recruit new fraudsters. The arsenal of techniques used by fraudsters falls into three main categories:
- False documents: Fraudsters may present false documents (photos, videos) to simulate damage to the product or prove that they never received the package. We won't go any further, as we don't want to inspire anyone.
- Identity theft: They can use stolen identities or create fake accounts to multiply frauds and make their trail difficult to trace.
- Exploiting system vulnerabilities: They can take advantage of flaws in platform security systems to modify tracking information or simulate technical problems.
The consequences of refunding
The consequences of refunds are manifold and can be divided into 3 main categories:
- Financial loss for sellers: The first effect is immediate, with undue refunds. They represent a direct, dry loss for e-tailers.
- Deterioration of the customer experience: The second effect is a delayed one. The increase in fraud can lead to a deterioration in the quality of customer service provided by marketplaces and e-retailers. This is a double whammy, as it increases mistrust among honest shoppers who read reviews.
- Process complexity: The last of these is medium-term. Vendors must implement increasingly rigorous control procedures to detect fraud. This means longer processes, and therefore higher costs for organizations.
The fight against refunds and the role of insurers
Faced with this scourge, as we have just seen, online sales platforms are implementing measures to combat "refunds". They are also trying to get the authorities on their side.
At the same time, insurers and brokers, like Claisy, play a crucial role in offering solutions to protect e-tailers: through financial coverage and prevention tools. To this end, a number of technologies support the platforms:
- Strengthening verification systems: platforms are implementing stricter verification systems. The aim is thus to authenticate buyers and claims as finely as possible while complying with legislation (e.g. RGPD).
- Specialized insurance : Brokers like Claisy market specific guarantees to cover losses linked to fraudulent reimbursements, offering additional financial protection for e-tailers. Claisy's services include claims handling assistance, fraud prevention tools and customized solutions.
- Working with the authorities: Platforms work closely with law enforcement agencies to track down fraud rings.
Current regulations
The legal framework is evolving to combat online fraud. As is often the case, action is reactive, as fraudsters often rely on the vagueness and/or gaps in current legislation. National and European legislation provides for criminal penalties for fraudsters (fraud, breach of trust or receiving stolen goods). At the same time, online sales platforms also have legal obligations in terms of consumer protection and the fight against fraud.
Example of a French legal text: Article 313-1 of the French Penal Code punishes fraud, defined as the act of obtaining or attempting to obtain for oneself or for others, by any fraudulent means whatsoever, a remittance of funds, an advantage of any kind or a signature. The penalties are often severe: breach of trust (article 314-1 of the French Penal Code) or fraud (article 313-1 of the French Penal Code) are punishable by 5 years' imprisonment and a 375,000-euro fine for fraud.
Conclusion
Refunds are a serious threat to e-commerce. While platforms are implementing effective countermeasures, it is equally important for e-tailers to protect themselves by adopting best practices and subscribing to specialized services such as those offered by Claisy. By understanding the mechanisms of this fraud and being vigilant, everyone can contribute to the fight against this scourge.
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