Consumer Protection Committee Files Lawsuit Against Emazon Fraud Schemes
The Consumer Protection Committee, in collaboration with Emazon’s law enforcement, has submitted a lawsuit against large-scale underground fraud schemes that have resulted in the theft of goods worth millions of dollars on Amazon’s online platforms. The lawsuit targets 20 members of an international fraudulent organization called Rekk, as well as 7 former Amazon employees who acted as insiders. [1]
The Rekk group, also known as Organized Retail Crime (Orc), facilitated illegal returns of goods for a certain fee through online forums and social networks. Customers looking to acquire free iPads or MacBooks would purchase goods through Amazon and then pay Rekk a percentage of the cost of the goods (e.g. 30%) to initiate an illegal return. [2]
Rekk utilized manipulative techniques, such as social engineering, unauthorized access to Amazon systems, and bribing insiders from the support service, to ensure refunds without actually returning the goods. Once the return was successful, customers would give a share of the refund to Rekk. This fraudulent scheme operated not just on Amazon, but also on other online retailers like Samsung, ASOS, and Nike. [3]
Investigations and Arrests
In November 2019, Rekk claimed to have fraudulently processed more than 100,000 orders from various retailers, serving over 30,000 customers worldwide. Their operations were not limited to Amazon, as Rekk members targeted the platform, along with Canada and Europe. They used various Telegram accounts, as well as Nulled, Reddit, and Discord platforms to promote their services and communicate with clients. [4]
Amazon’s Response and Anti-Fraud Measures
Amazon acknowledged the severity of the issue, revealing that in November, they collaborated with law enforcement agencies across three continents to take action against return groups involved in fraudulent activities. These actions resulted in arrests and disruptions to organizations responsible for millions of dollars in theft. [5]
To combat theft, fraud, and abuse, Amazon has invested over $1.2 billion in hiring investigators and employing more than 15,000 professionals over the past year. Once fraudulent activities are detected, the company takes several measures, including informing customers, closing accounts, and blocking scammers with the possibility of creating new accounts. [6]