Informer

May 10, 2024

Refunding Scam Explained (FTID All Versions)

Refunding Scam:

A refunding scam is a fraudulent scheme where a scammer attempts to obtain money or goods from a retailer or service provider by falsely claiming that they are owed a refund. Here's how it typically works:

Purchase and Claim: The scammer buys an item or service from a retailer using a credit card or another payment method. After the purchase, they contact the retailer's customer service, claiming that they are dissatisfied with the product or service and request a refund.

False Claims: The scammer may provide various reasons for requesting the refund, such as claiming that the item was defective, never received, or not as described. They may also fabricate stories about poor customer service or dissatisfaction with the purchase to convince the retailer to issue a refund.

Return of Goods: Sometimes, the scammer may even return a different or cheaper item instead of the original one, or send back an empty box to make it seem like they returned the item.

Issuing Refunds: In many cases, the retailer, wanting to maintain good customer relations or unaware of the scam, processes the refund without thoroughly verifying the legitimacy of the claim.

Double Dipping: In more sophisticated schemes, scammers may exploit loopholes in refund policies to obtain refunds while still keeping the original item or service, essentially getting something for nothing.

Chargeback Fraud: In cases where the purchase was made using a credit card, the scammer may also initiate a chargeback through their credit card company, claiming that the transaction was unauthorized or fraudulent, further complicating the situation for the retailer.

Dispute Resolution: Retailers often have dispute resolution processes in place to handle refund requests and chargebacks. However, scammers may try to manipulate these processes by providing false evidence or making threats to escalate the issue.

These scams can result in financial losses for retailers, damage to their reputation, and increased costs for consumers due to tighter refund policies or higher prices to offset losses from fraud. To prevent falling victim to refunding scams, retailers should implement robust verification procedures for refund requests and monitor transactions for suspicious activity.

FTID Explained:

The FTID (Friendly Fraud Transaction Identification) method is a technique used by businesses, particularly in e-commerce, to identify and prevent friendly fraud, also known as chargeback fraud. Friendly fraud occurs when a customer makes a legitimate purchase but later disputes the charge with their bank or credit card issuer, claiming that the transaction was unauthorized or fraudulent.

Here's how the FTID method typically works:

Data Collection: The business collects and analyzes transactional data, including customer information, purchase history, IP addresses, device information, shipping addresses, and any other relevant data associated with the transaction.

Pattern Recognition: Using sophisticated algorithms and machine learning techniques, the business identifies patterns and anomalies in the transaction data that may indicate potential cases of friendly fraud. This includes looking for inconsistencies such as unusual purchasing behavior, multiple claims from the same customer, or discrepancies between the shipping and billing addresses.

Risk Scoring: Based on the patterns identified, each transaction is assigned a risk score indicating the likelihood of friendly fraud. Transactions with high-risk scores are flagged for further review, while those deemed low risk are processed as usual.

Manual Review: Transactions flagged as high risk are manually reviewed by fraud prevention specialists who investigate the details of the transaction to determine whether it is indeed fraudulent or if there is a legitimate reason for the dispute. This may involve contacting the customer for additional information or evidence to support the transaction's validity.

Decision Making: Based on the findings of the review, the business decides whether to accept the chargeback or dispute it with the bank or credit card issuer. In cases where the transaction is deemed legitimate, the business may provide evidence to support their case and challenge the chargeback.

Continuous Improvement: The FTID method is an iterative process, with businesses constantly refining their algorithms and strategies based on new data and emerging fraud trends to stay ahead of fraudsters.

By implementing the FTID method, businesses can better identify and prevent friendly fraud, reducing the financial losses and operational challenges associated with chargebacks. Additionally, it helps maintain trust with legitimate customers by minimizing the impact of fraudulent transactions on their shopping experience.

FTID Versions:

These versions of FTID are the exact methods that darkweb scammers use to feed on their pray. Taken from a shared post on darkweb for information only.

FTIDv1:

FTIDv1 is the most basic of FTIDs. It is literally just shipping off an empty parcel with your label. That's it.

Pros:

+ Super easy

+ Efficient on a high scale

Cons:

- Like the oldest trick in the book

- Most companies have caught on

- Most likely will not work

FTIDv2:

FTIDv2 requires you to remove any identifiable information from your shipping label.

In order to remove all personal/order related details from it in order to make it untraceable to you, you should remove info such as:

• Order IDs
• Return Address
• Name
• Phone number

Pros:

+ Simple

Cons:

- Most companies will simply check the tracking number in order to see if they get a match.

FTIDv3:

This method is one of, if not, the most common FTIDs you will find in a method.

FTIDv3 requires you to edit the label in the following ways:

• Return address - Alter to nearby
• Phone number - Alter to similar
• Name - Alter to something random
• Tracking number - Alter to something similar
• Weight - edit if necessary (e.g, if applying to envelope, edit to 0.1kg)

Shipping address - Open up google maps, and find a valid address nearby. This new address should be within the same town as the old one.

Pros:

+ Most commonly used for refunds/SEs

+ If done well, should work 95% of the time

+ Most couriers side with you if investigation opened

Cons:

- Requires software such as Adobe Acrobat to edit

- Matching fonts can be hard

- Some couriers like to be dicks about FTIDs (e.g. FedEx, Evri, DHL can be chard to ail, however practice makes perfect!)

FTIDv4:

This is where you use single side print flyers with an advertisement on it and place the label(ftid3 label) on the other side (without ad)

• Typically you would only use this for international orders so it gets through customs quicker or if you needed faster shipping with say budget shipping labels
• often referred to as 'advanced' FTID3, but its not really
• Typically only used for international orders

FTIDv5:

There's like 10 different versions of FTID5 but here is the barcode method:

• Use a barcode generator and add your tracking number to it then replace on label
• Create a QR code holding a similar or unreadable tracking number.
• It's completely unnecessary to use this method unless you are doing a fake return.

FTIDv6 - Lost In Transit:

This is once again, one of the most used methods in SEs/Refunds

There are multiple methods for this, so I will cover the top 3.

Method 1:

• Get your label.
• Attach to parcel.
• Proceed to beat the living fucking shit out of the Parcel.
• Send beaten up empty parcel.
• Courier will notice the parcel looks like shit and will investigate it further to find out its empty.
• Box will be thrown away.

Pros:

+ Easy for beginners

Cons:

- Sometimes the courier wont accept the parcel, or they won't throw it away

- Temperamental and unreliable

Method 2:

• Get the label
• Remove address to their warehouse
• Get a transparent ink that gets removed automatically in less than 48 hours
• Write with the ink their warehouse address
• Send the parcel
• Warehouse address will be vanished when the courier tries to deliver it
• Courier will mark the package as lost in transit.
• Can also be done by using vanishing printer ink.

Pros:

+ Very effective

+ Can be used in a multitude of ways

Cons:

- Can be expensive

- Tedious to set up

Method 3:

• Use a small box, tape it up as though there is something inside of it.
• Place the label on the parcel.
• On the opposite side, take a knife and slash the box.
• Repeat if it still looks ok.
• Reach into the box and move your hand around the cut. This widens the hole and makes it seem as though someone has reached into the box to grab the contents.
• Tape it up POORLY, and use a different colour tape.
• Send off the parcel.

Pros:

+ Easy for beginners

Cons:

- Sometimes the courier wont accept the parcel, or they won't throw it away

- Temperamental and unreliable