Amazon has filed a lawsuit against a group known as REKK for providing a paid service that helps shoppers obtain high-value items like laptops and game consoles at a discounted rate by exploiting Amazon's return and refund system.
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DANDENONG, AUSTRALIA - DECEMBER 05: The Amazon website is seen on December 5, 2017 in Dandenong, Australia.
Filing Legal Action
Amazon's legal action alleges that REKK engaged in social engineering, phishing attacks on Amazon fulfillment employees, or bribery to secure millions of dollars in refunds without actually returning the purchased items.
The Verge reported that this isn't the typical situation where you return a small item and Amazon issues a refund without requiring the item's return.
REKK promoted its services in a Telegram channel with 30,000 followers, accepting payments as a percentage of the item's original price. The group manipulated the system by initiating return requests without actually returning the items.
An instance from the lawsuit details how the scheme operated: one defendant, Andrew Ling, reportedly ordered five iPads and collaborated with REKK to secure a refund.
In this case, Fortune reported that REKK is accused of employing a phishing attack against a fulfillment center employee to fraudulently mark the iPad returns as received in Amazon's systems.
Supposedly, a REKK-affiliated Amazon staff member accepted a bribe and greenlit 76 product returns totaling over $100,000 in exchange for $3,500, while another received $5,000 for approving 56 fraudulent returns worth over $75,000.
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The lawsuit was filed on Thursday in a U.S. District Court in Washington state, identifying more than two dozen individuals from the U.S., the UK, Canada, Greece, Lithuania, and the Netherlands.
Global consumers are projected to allocate $678 billion on Amazon platforms this year, presenting a substantial focus for scams that occasionally result in criminal charges and implicate Amazon staff.
Notably, in 2020, an Amazon employee in India faced charges for allegedly accepting $100,000 in bribes to provide specific merchants with advantages over competitors selling products on the platform.
Prominent Player in the Underground Industry
As a group specializing in refund fraud, Bleeping Computer reported that REKK is a prominent player in the underground industry offering illicit refund services.
In November 2019, REKK asserted on Nulled that they had deceitfully refunded over 100,000 orders across various retailers, including LuLu Lemon, bol., Samsung, ASOS, Nike, and Home Depot, benefiting more than 30,000 customers globally, not limited to Amazon alone.
REKK's members focus on Amazon online marketplaces in the United States, Canada, and Europe, utilizing Telegram accounts such as "@refundingclub," "@rekks," "@rekksupport," and "@rekkvouches" to promote their services and interact with individuals seeking unauthorized refunds from Amazon.
Furthermore, they advertise their services and engage with refund-seekers on platforms like Nulled (under the username "rekk"), Reddit (using the username "rekksalt" and within the subreddit "r/REKKRefundService"), and Discord (under the username "rekk#5319").
Significantly, the group's primary Telegram channel, @refundingclub, had surpassed 35,000 subscribers as of December 5, openly promoting refund services they acknowledge as fraudulent.
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