Chinese Teenager Orchestrates Massive E-commerce Refund Fraud
A seventeen-year-old boy from China executed a sophisticated online refund fraud scheme. He cleverly manipulated weaknesses in an e-commerce platform's return system. The teenager, identified with the surname Lu, submitted close to eleven thousand nine hundred fraudulent refund requests. He never actually returned any purchased products to the sellers.
How the Elaborate Scam Worked
Lu entered false courier tracking numbers for each fake return. This simple trick allowed him to receive full refunds from the platform. The sellers, however, never received their original goods back. The South China Morning Post first reported these details about the case.
The entire operation came under investigation in March 2024. A cosmetics shopping platform alerted police after noticing highly suspicious refund patterns. Investigators quickly discovered that Lu had created multiple buyer accounts on the platform. He used these accounts to place orders and then systematically abused the refund process for each one.
Court Findings Reveal Massive Profits
Court documents revealed the staggering scale of the fraud. Lu successfully received goods valued at approximately 4.76 million yuan. This amount converts to roughly ₹6.15 crore in Indian currency. He then resold these items on various second-hand online platforms.
From this illegal activity, the teenager earned a profit of about 4.01 million yuan. That figure equals nearly ₹5.18 crore. According to the SCMP report, he spent his illicit earnings on high-end mobile phones, designer clothing, and entertaining his circle of friends.
Legal Repercussions and Sentencing
A Shanghai court delivered its verdict in July 2025. The judge sentenced Lu to six years in prison for his crimes. This judgment sends a powerful message about the serious consequences of online fraud. The court emphasized that being a minor does not provide immunity from such severe penalties.
Another Notorious Refund Scam Emerges in China
Chinese media outlets reported several similar fraud cases throughout 2025. In one widely publicized incident, buyers utilized AI-generated images to commit online refund fraud. A particularly notable case gained attention in December of that year.
An online seller came forward with a detailed account. He explained how a woman had systematically abused refund policies. She operated multiple buyer accounts to target his shop. The woman would order products and then immediately file for refunds.
The Deceptive Return Strategy
Instead of sending back the original, more expensive items, she employed deceptive tactics. She returned cheaper substitute goods or submitted completely false evidence to support her claims. The seller estimated that this fraudster illegally obtained 225 separate items.
This activity caused the seller financial losses worth 54,000 yuan. In Indian currency, that amounts to around ₹7 lakh. The scheme unraveled when the seller noticed irregularities in the return images provided by the buyer.
After the story went viral on social media, the woman attempted damage control. She transferred 30,000 yuan, nearly ₹3.9 lakh, to the seller's account. However, the seller refused the payment. He insisted on pursuing full legal action for the fraud committed against his business.
Parallel Refund Scam Uncovered in India
In a related development, Delhi Police made a significant arrest in June 2025. Officers apprehended a twenty-two-year-old delivery agent. He stands accused of cheating major Indian e-commerce giants, Amazon and Flipkart, through fake return packages.
The accused individual, identified as Kishan, worked as a delivery partner for both platforms. The case came to light after the filing of an electronic First Information Report. This report raised serious suspicions about tampering with returned items.
Investigation Uncovers Replacement Scheme
Police investigators uncovered a detailed replacement scheme. Genuine products sent back by customers were being secretly swapped. Kishan allegedly replaced them with old or previously used items. These counterfeit returns were then accepted without question at the company's warehouses, causing substantial financial damage.
Authorities used technical tracking methods and local intelligence to trace the suspect. Police conducted a raid and arrested Kishan. During the operation, officers recovered thirty-eight fake exchange items from his possession.
The seized goods included a tablet computer, a mobile phone, multiple clothing packets, watches, footwear, and various other products. According to the police statement, Kishan exploited gaps in the quality check procedures. He passed off used items as genuine customer returns. All recovered items were taken into official custody as evidence.
