A Chinese teenager carried out a large-scale online refund fraud. He exploited a loophole in an e-commerce platform’s return system.
The 17-year-old, identified by the surname Lu, made nearly 11,900 fake refund requests without actually returning any products.
He entered false courier tracking numbers. Thus, he managed to receive refunds even though sellers never got the goods back, according to the South China Morning Post.
The scam came to light in March 2024 after a cosmetics shopping platform reported suspicious refund activity to the police. Investigators found that Lu had opened multiple buyer accounts to place orders and repeatedly misused the refund process.
According to court findings, Lu received goods worth about 4.76 million yuan ( ₹6.15 crore) and resold them on second-hand platforms. He earned around 4.01 million yuan ( ₹5.18 crore) in profit. He spent the money on expensive phones, branded clothes and entertaining friends, according to SCMP.
A Shanghai court delivered the verdict in July 2025. He was sentenced to six years in prison. The judgment sends a strong signal against online fraud, even when committed by a minor.
Another refund scam in China
In 2025, Chinese media reported several cases where buyers used AI-generated images to commit online refund fraud. One widely shared case emerged in December.
An online seller revealed how a woman had abused refund policies using multiple buyer accounts. The woman ordered products from the seller’s shop and then filed refund requests. Instead of returning the original items, she sent back cheaper goods or false evidence.
The seller claimed that the woman had illegally obtained 225 items, causing losses worth 54,000 yuan (around ₹7 lakh). The fraud was uncovered after irregular return images raised suspicion.
After the incident went viral online, the woman attempted damage control by transferring 30,000 yuan (nearly ₹3.9 lakh) to the seller. However, the seller refused the payment and demanded legal action for the fraud.
Refund scam in India
In June 2025, Delhi Police arrested a 22-year-old delivery agent. He allegedly cheated major e-commerce companies, Amazon and Flipkart, through fake return packages. The accused, identified as Kishan, worked as a delivery partner for both platforms.
The case came to light after an e-FIR was filed. It raised suspicion that returned items were being tampered with.
Investigators found that genuine products sent back by customers were being replaced with old or used items. These fake returns were then accepted by the company’s warehouses. It caused heavy financial losses.
Using technical tracking and local intelligence, police traced Kishan and arrested him. During the raid, officers recovered 38 fake exchange items. He allegedly had a tablet, a mobile phone, clothing packets, watches, footwear and other goods.
According to police, Kishan exploited gaps in quality checks to pass off used items as genuine returns. All seized items were taken into custody.
