In the world of e-commerce with huge trading volume, there is a special group of "Professional extortioner for fraud fighting". They search for "prey" by searching for keywords, use "script" to receive the information they need after receiving the goods, and then use various means such as reporting, threatening, etc. to request a refund and claim. In recent years, this special "fraud fighting" has a trend of "industrialization."

The main types of reports for "fraud fighting" are getting products for free, claims for the extreme words.

There are also some "weak points" that e-commerce sellers cannot prove, and they are "focused" by such "fraud fighters". Earlier, some media reported that a well-known sportswear store on the Internet received a large number of orders for returns within a few hours, on the grounds of “sending the wrong goods”. These orders have the same feature: each order has two pieces of clothing-an expensive one and a cheap one, and the "buyer" only returns the cheap one. Since the clothes have no special codes or labels, the merchant cannot prove that he has not sent the wrong goods and has no choice but to accept the losses.

According to a seller, “Professional fraud fighters” search for relevant stores with keywords such as “extreme words” that violate the relevant regulations. After ordering an order, they apply for a refund and then complain before the shipment or after receiving the goods. They will initiate a complaint about the store that the seller broke the promise, with the reason that the merchant violated the law and rules, and upload the image of the violation page. If the merchant does not accept the application, they will invite the e-commerce platform to intervene, and will also contact the online customer service, and hint that they will complain in the National Administrative Department or Law Enforcement Department, and even take a screenshot of the complaining page.

There are also some old and well-respected shops went bankrupt after rounds of "anti-counterfeiting actions", because they were blackmailed by "professional fraud fighters" and refused to pay compensation.

At present, in response to this situation, many e-commerce platforms have taken increasingly clear constraints of buyers and sellers. Take Taobao as an example. If the buyer indicates that the goods received are fakes, the seller is required to present evidence first, such as an authorization letter, a receipt certificate, a certificate of own-brand-holding, or a screenshot of the purchase record on the Alibaba supply and marketing platform.

Shanghai Dongjin’s Suggestion

For the development of the e-commerce industry, the emergence of "profit-oriented fraud fighters" has increased the cost of online sellers to review its own products. Only products that comply with laws and regulations can withstand the test of "professional fraud fighters".

Shanghai Dongjin suggests that e-commerce operators should pay attention to common problems, attach importance to intellectual property rights and quality control system, entrust professional legal persons to strengthen the control of internal legal risks, and review the information of e-commerce platforms in advance to reduce the "blackmail opportunities" of professional extortioner for fraud fighting.

If confronted with malicious reports and threats, it is recommended to entrust a legal professional to collect relevant evidence and take legal approaches to protect their rights and interests.

If you have any question, please contact me.

Mr. Mike Chang

TEL: 0086-21-68868321 / FAX: 0086-21-68868021