Amazon has launched a legal battle against a cunning group known as REKK, which is accused of orchestrating a massive refund scam that cost the online retail giant millions. The lawsuit, filed in a US District Court in Washington, targets over two dozen individuals from various countries, including the US, the UK, Canada, Greece, Lithuania, and the Netherlands, who are allegedly involved in this sophisticated scheme.
REKK, which boasted a following of over 30,000 on Telegram, offered a paid service to shoppers, enabling them to obtain high-value items like laptops and game consoles for free. The group allegedly employed tactics like social engineering, phishing attacks on Amazon employees, and even bribery to manipulate Amazon's return and refund system. The lawsuit details how one Amazon employee was bribed with $3,500 to approve 76 product returns valued at over $100,000, while another received $5,000 for sanctioning 56 fake returns worth over $75,000.
The scam exploited Amazon's refund policy by logging fake returns in the system, allowing buyers to retain products without actually returning them. For instance, in one case, a customer ordered five iPads and collaborated with REKK to get a refund through a phishing attack against an Amazon fulfillment center employee, who then falsely marked the iPads as returned in Amazon's system.
Amazon's lawsuit is a response to a growing problem in the retail industry, where retail fraud caused over $84 billion in losses last year. To combat such issues, Amazon has invested approximately $1.2 billion and employed over 15,000 people to tackle theft, fraud, and abuse. The company also utilizes advanced machine learning models to proactively detect and prevent fraud.
As part of its effort to curb such abuses, Amazon has made several adjustments to its return policy. This includes introducing a warning label on products that are frequently returned, urging customers to review product details more carefully. Additionally, since April, Amazon has started charging a $1 fee for returns at UPS if a free drop-off location is available nearby. Moreover, this holiday season, many Amazon retailers have implemented stricter return policies, with some planning to shorten the return period and others intending to charge return fees.
Amazon's current lawsuit against REKK reflects the company's commitment to safeguarding its operations and customers from fraudulent activities, ensuring a fair and secure shopping environment as it heads into a busy holiday season.