Being involved in trade with i-devices (such as iPhones and iPods) has sharpened our mind to putting in practice processes to nullify the risks of Buyer Return Fraud. We currently undertake an extensive range of risk mitigation processes, including: (i) shipping only to PayPal verified addresses; (ii) using tracked shipping with signature on delivery; (iii) accurately representing the items that we sell; and (iv) recording unique product identifiers (such as Serial Numbers and IMEI details) prior to dispatch.
Recently, we have been the target of Buyer Return Fraud at the higher end of the spectrum where the Buyer, having been granted the opportunity to return a new iPhone (boxed with original manual and accessories and bundled with additional accessories), despite not raising an issue for more than a month after receipt of the iPhone, has returned a non-functional substitute iPhone with none of the manuals or accessories original dispatched.
The original package dispatched weighed 480gm and the returned item showed a weight of just 225 gm. Upon opening the returned package, the original Apple iPhone box was not enclosed (these boxes show relevant unique identifiers) and none of the original manuals or accessories were returned. Further, with the returned iPhone being non-functional, the Serial Number and IMEI could not be checked through the Settings menu, but could only be checked on the SIM-card tray (access to which was obfuscated by the non-return of the SIM-card tray tool). Nevertheless, when the SIM-card tray was accessed, the Serial Number and IMEI were found to be different from the item originally dispatched.
We contacted PayPal immediately and were asked to provide an Affidavit identifying the relevant issues and annexing evidence - that Affidavit was supplied within 7 days. PayPal staff contacted in relation to this matter indicated - after reading the Affidavit - that we had done everything to ensure that the matter was resolved in our favour. Our Affidavit particularize the identifying details of the original iPhone dispatched, the contents and weight of the original package dispatched, the weight and content of the returned package and the identifying details of the iPhone substituted in this buyer return fraud (including annexed copies of the substitute SIM-card tray, the postage documents for the returned item and other material).
Surprisingly, we have subsequently been advised that the dispute will not be resolve in our favour, with - at this stage - only verbal advice provided to us to the effect that PayPal cannot rely upon an Affidavit to substantiate: (i) what IMEI or Serial Number was carried by the original iPhone dispatched; (ii) what the contents of the original package were (including, notwithstanding the identity of the iPhone, the accessories dispatched); (iii) what the weight was of the original package; (iv) what the contents were of the returned package; and (v) that the IMEI and Serial Number of the returned iPhone differed from that original dispatched.
It is apparent, too, that PayPal has not even contacted the buyer on this matter before otherwise deciding to not honour the Seller Protection policy for us.
While we do have recourse to Small Claims and raising complaints with financial regulatory authorities - in addition to progressing a police report on the fraud involved - we had also expected reasonably to be able to resolve the matter through PayPal's Seller Protection processes. At the moment, we are at a loss to understand how this matter could be resolved in favour of the buyer.
It stands, of course, that if this type of resolution is typical of the solutions arising in such cases, PayPal's processes will be exposing sellers to an emboldened cohort of consumer terrorists (there really is little other description for this type of outright fraud) that will have been reinforced by PayPal's refusal to adequately protect sellers from the type of fraud.
We would appreciate hearing thoughts on what other measures we could put in place to nullify the risks associated with this type of Buyer Return Fraud and, in the event that a PayPal moderator would like to assist in rectifying this apparent gross departure from appropriate Seller Protection practices, would welcome direct contact on the matter. Also, if others have been able to successfully reverse such an adverse finding to access Seller Protection and full payment after such experiences, we would love to hear how you resolved your matters so that we can follow a similar process.
