Amazon suit claims international ring stole millions in fraudulent refunds

Emily Schmall

Amazon has accused an international organisation, including customers and several former employees, of conspiring to steal millions of dollars in online products through fraudulent refunds.

In a lawsuit filed Thursday in the US District Court in Seattle, the online retailer accused the group, called REKK, of perpetrating the fraud between June 2022 and May 2023. The lawsuit includes more than 20 named defendants and 20 unnamed individuals.
 

According to the suit, REKK is a large player in an underground industry of fraudsters who “have created illegitimate ‘businesses’ offering fraudulent refunds to individuals around the world who are knowingly engaging with and participating in the fraud” to get expensive products free.
 

 

The 44-page complaint said that REKK marketed itself through social media channels like Reddit and the encrypted messaging app Telegram as a paid service that allowed users to buy products from online retailers and pretend to return them, keeping both the product and the refund.
 

In the suit, Amazon said that more than a dozen fraudulent refunds were issued for expensive items including laptops, gaming consoles and a 24-karat gold coin, and that at least seven former Amazon employees — described as “insiders” — accepted thous­ands of dollars in bribes to process reimbursements for products that were never returned.
 

REKK impersonated Amazon customers, used phishing messages to obtain credentials, manipulated systems through unauthorised access and bribed employees to grant refunds, according to the suit. The employees, Amazon said in the filing, gave more than $500,000 worth of fraudulent returns.
 

REKK did not immediately respond to a request for comment sent to the group’s Reddit page. As of Saturday, its Telegram channel had been shut down.
 

In the complaint, Amazon included screenshots that appeared to show REKK spelling out the fraud in advertisements on social media. “To put it simply, refunding is when you buy a product and then trick the company into thinking you have returned the product,” a user explained on the REKK Refund Service subreddit.
 

In another image showing parts of a text message exchange, REKK offered Janiyah Alford, a former Amazon employee named in the suit, $3,500 to scan items as received and sellable despite never being returned.
 

According to the suit, Alford approved product returns for 76 orders at REKK’s request, leading Amazon to refund more than $100,000 to REKK users.
 

Alford said in an interview that she had received text messages asking for help in carrying out the fraudulent returns, and that the messages included her home address and the home addresses of several relatives. She said she did not know who sent the messages, but she viewed them as threats. The messages were not mentioned in the complaint.