Amazon sues fraudsters for refund scam worth millions of dollars
Amazon has filed a lawsuit in the US against an international group of thieves, including an organization called REKK and nearly 30 individuals from various countries. The group is accused of stealing millions of dollars in merchandise through refund scams, where they purchased products on Amazon and sought refunds without returning the items. REKK promoted its refund services on social media platforms like Reddit and Discord and used the messaging app Telegram to communicate with its accomplices.
Hacking and bribing Amazon employees
The lawsuit alleges that the defendants hacked into Amazon's internal systems and bribed Amazon workers to approve reimbursements. REKK charged customers a commission depending on the value of the purchase for items. At least seven ex-Amazon employees were identified as "insiders" who allegedly took thousands of dollars in bribes to approve refunds even though products weren't returned. The lawsuit cites transactions from June 2022 to May 2023 that led to fraudulent refunds, including laptops, smartphones, and a 24-karat gold coin.
Amazon's efforts to combat fraud
In 2022, Amazon spent $1.2 billion and employed 15,000 workers to combat fraud, theft, and abuse on its site. Amazon's Vice President of Seller Services, Dharmesh Mehta, stated in a LinkedIn post that when fraud is detected, Amazon takes various measures to stop the activity. They include issuing warnings, closing the accounts, and preventing those involved in refund fraud from opening new accounts.
Amazon to see transactions worth $678 billion this year
In 2023, shoppers worldwide are expected to spend $678 billion on Amazon sites. This makes the Jeff Bezos-owned firm a significant target for scams that may lead to criminal indictments and involve Amazon insiders. In India in 2020, an Amazon employee was charged with taking $100,000 (around Rs. 83.4 lakh) in bribes. This was done to give some merchants advantages over others selling goods on the website.
