How Online Sellers Are Battling a Surge in Organized Fraud

Last summer, online cookware brand Made In saw customers’ requests for refunds nearly double in terms of dollar value in just a month. Soon after, instead of returned merchandise, empty envelopes and boxes filled with junk, like plastic toys, began to show up at Made In’s fulfillment center.

Made In executives realized that the surge in returns was a coordinated, large-scale effort, likely stemming from online fraud groups on Telegram and other apps that had zeroed in on the company due to its generous returns policies, said Chad Brinton, Made In’s senior vice president of operations.

“As we dug in, it was clear that somebody had identified that there was a vulnerability in our returns process,” said Brinton.