Amazon sues over alleged $4 million scheme tied to fake refunds

Selling on Amazon Returns and Claims
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Amazon sues over alleged $4 million scheme tied to fake refunds

SEATTLE — Amazon filed a federal lawsuit Tuesday in Seattle accusing a group using the name RBK of getting more than $4 million in refunds for products that were never returned, according to the complaint.

The complaint, filed in U.S. District Court for the Western District of Washington, names Dias Temirbekul Zhumaniyaz, Michael Bauschelt and Adnan Islam as defendants, along with up to 20 unknown people Amazon says were involved in the operation.

Amazon says Zhumaniyaz lives in Kyzylorda, Kazakhstan, while Bauschelt lives in Lakeside, California, and Islam lives in Astoria, New York.

Amazon says RBK promoted its refund service through Telegram channels and built a following of more than 1,000 subscribers.

Telegram is an instant messaging service that offers private chats and livestreams.

The company says RBK posted more than 2,100 user testimonials, or “vouches,” showing fraudulent Amazon refunds, and that the channel had advertised more than $4 million in Amazon refund activity since February 2023.

According to the complaint, RBK users would buy items from Amazon, then contact the group through Telegram and hand over their Amazon login information.

Amazon says RBK charged users 15% to 30% of the order cost, contacted customer service while posing as the buyer and often claimed the shipment arrived as an empty package.

In some cases, Amazon says, the group also submitted fake police reports to help get refunds approved.

Amazon included one example: An investigator bought a PlayStation Portal Remote Player for $199 plus $13.18 in tax, then paid RBK $100 in bitcoin after the item was delivered.

Amazon says the investigator later received a refund after RBK told customer service the product had not been received and provided a police report.

Amazon says RBK also used Amazon’s name and logos in Telegram posts in a way that could make the service appear legitimate at first glance.

The company says it spent more than $75,000 investigating the alleged scheme and is asking the court for damages and injunctive relief.

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Okay, but are they going to use the winnings to reimburse sellers who were also bilked? If not, can we join in the lawsuit as a class action?

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What I notice is that the lawsuit isn’t about the fraudulent returns…

it is about using Amazon’s IP and making money off Amazon’s lax policies.

They don’t like that someone created a cottage industry that cuts into Amazon’s profit (they don’t lose money with returns but they could make more if returns didn’t happen)

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I was wondering the same thing

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:thinking: I’m not sure, but I think action about the fraudulent returns would need to go through the criminal process rather than a civil dispute?

Lol no…but maybe Amazon will at least ban the Buyer accounts who used the service.

ETA: I wonder if the RBK ring is tied to REKK?