US Retailers Struggle with 'Refund Scam Gang'... Participants Gather on TikTok and Reddit

In the United States, known as the "return paradise" for its easy refund policies, so-called "refund scam gangs" are running rampant. These organized gangs are openly recruiting participants on platforms like TikTok and Reddit.

On the 14th (local time), economic media CNBC reported that refund scam gangs, organized like corporations, are exploiting generous refund policies to siphon off billions of dollars from retail companies such as Amazon.

They promote themselves on TikTok, Reddit, Telegram, and other platforms as a "paid service that allows you to get both the product and the refund," attracting users to participate in refund scams. CNBC stated, "If you type 'refund method' or a slightly altered version like 'r3fund' on TikTok, videos showing users with cash, sneakers, and piles of iPhones appear." On Telegram, posts targeting retailers like Nike, eBay, and Apple are posted almost daily.

In the U.S., known as a return and refund paradise, many companies offer unlimited free return policies, and in some cases, do not even collect the returned items to avoid additional shipping costs. Scammers exploit this by pretending to return products to companies and receiving refunds, thus keeping both the items and the money. Some gangs even suggest ordering food delivery services like DoorDash and Uber Eats, claiming "you can eat for free." CNBC noted, "They are highly organized and operate like a corporation," adding, "They provide customer service, create order lists, and even make fake shipping labels."

[Image source=AP Yonhap News]

Amazon, the world's largest e-commerce company, has already taken legal action against these refund scam gangs. In December last year, Amazon sued an organization named 'REKK.' The group is accused of impersonating customers from June 2022 to May 2023, requesting refunds for dozens of orders without returning the items, thereby fraudulently obtaining refund payments. During this process, REKK also approached current and former Amazon employees, bribing them to process refunds.

Amazon criticized, "They are abusing the refund process and causing harm," adding, "Honest customers and retailers have suffered from increased costs, reduced inventory, and service disruptions." CNBC also reported that Amazon suffered losses exceeding $700,000 from other related scams.

According to surveys by the National Retail Federation (NRF) and Appriss Retail, the damage caused to retailers by returns last year amounted to approximately $101 billion (about 133 trillion KRW). This includes not only refund scams but also cases like "wardrobing," where customers use clothes or items for a certain period and then return them for a full refund.

This content was produced with the assistance of AI translation services.