Sellers, beware! An American buyer used an Amazon return loophole to defraud over $300,000!

According to the U.S. Department of Justice, 34-year-old Farhaad Riyaz pleaded guilty on Monday in federal court in Alexandria, Virginia. The man admitted that between 2017 and 2020, he exploited loopholes in Amazon's return program to defraud the platform of more than $300,000.

According to court documents, Farhaad Riyaz used multiple Amazon accounts to buy high-end items online, then when the goods were delivered, he would return them, claiming that the item was delivered too late or that the item did not match the online description. He would send another item of the same item at a much lower price back to Amazon via UPS, and Amazon would refund him the full amount.

In June 2019, Riyaz purchased a Fender Telecaster electric guitar from Amazon for $2,600, and then returned a Squier Telecaster electric guitar of the same color worth $400. Between 2017 and 2020, Riyaz returned multiple Amazon products using the same method, with a total fraud amount of up to $300,000.

Riyaz is scheduled to be sentenced on March 22, 2022, and faces up to 20 years in prison.

Editor✎Irene/

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