Buyer’s Scam on Amazon: How to Protect Your Business?

‍Scams are a dangerous type of internet fraud. Scammers often target Amazon sellers, try to cheat them, and steal their money and personal information. Though Amazon invests significant resources to protect its customers from scammers, sellers must be cautious with buyer scams and proactively protect against them.

Keep reading to find out the most common types of buyer scams and how to secure your business from cheaters.

5 Types Of Amazon Buyer Scams

1. Failed delivery scam

This type of scam happens when a shopper purchases a product online and says the product did not arrive.

How does it work?

A buyer pretends that the product was not received, though they had obtained the order, and claims either a replacement or refund. Scammers can try to cheat FBM sellers because Amazon processes returns on their behalf and, in most cases, provides a full refund if a customer claims they didn’t get the order.

How to avoid failed delivery scams?

• use track & trace shipping methods that include online tracking options;
• for expensive items, apply signature-required delivery; with it, buyers must sign when they receive the order;
• verify your orders' delivery and the time they arrive in the ‘Manage Orders’ section of your Seller Central Account using your order ID.

2. Replace and refund scam

This scam occurs when a shopper orders a product, pretends they’ve received a used or damaged one, and asks for a refund.

How does it work?

The scammer finds a new product on Amazon that is the same as their old or broken one. They order a new product and then claim they’ve received a used or broken one. They provide pictures of their used or damaged item as fake proof that they received the product in a condition not as listed. That way, they keep the new product, send the used one to the cheated seller, and ask for a refund.

How to avoid replace and refund scams?

• add tamper-proof labels to products; these labels break or display specific symbols when a cheater tries to remove and reapply them on the other item;
• security mark your product;
• specify on the listing that all your products have warranty labels.

3. Phishing

Phishing is the type of online cheating where a scammer tries to trick a seller into revealing personal information, e.g., credit card payment details or account information, to steal money.

How does it work?

Often, scammers pretend to be a trusted company, like Amazon. They can contact you by phone, email, or on social networks. They ask you to disclose your login and password or bank details. They can also send emails containing malicious links. When you click that link, it redirects you to another website where your private information, passwords, and payment details are stolen. For instance, in such emails, phishers can use Amazon’s logo and send the content looking like it’s from Amazon and include malicious links. Also, fraudsters often use visually similar characters to deceive with phishing emails. In the email address, they can place an “r” beside an “n” to make it look like an “m.” You can see the difference if you enlarge your screen.

How to avoid phishing?

• report to Amazon if you notice any suspicious activity on your account;
• don’t open suspicious emails, attachments, or links;
• don’t disclose your personal information to anyone;
• enable Amazon two-step verification, and apply Amazon security code;
• use a secure password, regularly change it, and control users accessing your account.

4. Email scam

Email scammers are cheaters pretending to be buyers and attempting to steal your products by email.

How does it work?

Typically, scammers ask you about a non-existing order they placed and insist that you ship it out as fast as possible, forcing you to send a non-existing order in a rush without checking its details.

How to avoid email scams?

• always check all orders in your Seller Central;
• if the order in question doesn’t appear on “Your Orders,” don’t send out products or open these emails;
• don’t respond to suspicious emails with unknown email IDs.

5. Credit card scam

A credit card scam happens when fraudsters try to pay with another person’s stolen credit card, leading to chargebacks.

How does it work?

Credit card scammers steal credit card numbers and card holder’s personal information, try to purchase goods using those cards, and ask sellers to deliver goods to different addresses. When the current card owner finds out about the transaction, they issue a chargeback — inform the bank they didn’t make the purchase. Disputing chargeback costs time and money.

How to avoid credit card scams?

• keep track of your transactions and records of your shipping receipts and tracking numbers;
• dispute the chargeback and ask Amazon to represent your case to the credit card company on your behalf (that involves paying a Disputed Chargeback fee of $20);
• enhance your customer communication and know your buyers.

Final Thoughts

Amazon sellers are often targeted by scams. Therefore, you must know how fraudsters can cheat you and how to fight them.

Though your account security is vital for your Amazon business, product research is equally crucial for your success on Amazon. One of the popular product research tools is Seller Assistant App. It’s a powerful product research extension for Amazon sellers engaged in online arbitrage, wholesale, and dropshipping.

Seller Assistant Аpp is an all-in-one tool incorporating features vital for product research. Advanced IP Alerts can immediately tell you if a product has any sales restrictions or has led to problems with account health in the past. It combines an FBM&FBA profit calculator, Quick View, Stock Checker, and Restrictions Checker in one tool.