Types of Buyer Fraud
Here are some of the most common types of buyer fraud that ShipInsure provides protection against.
False Non-Delivery Claims
A false non-delivery claim occurs when a customer receives a product purchased from your business but files a claim with you that they did not receive it. Depending on the type of shipping method you use, you may have little recourse to fight the claim on your own. In the end, you may just have to take the loss and pay for the refund, even though the customer is clearly committing fraud.
With ShipInsure, customers file a claim with us — not you. This means that we will collect the relevant information and determine if the claim should be accepted or denied. Even if a false non-delivery claim is accepted, we will pay for the refund. While this does not completely eliminate occurrences of false non-delivery claims, it does deter repeat offenders and take the financial burden off your shoulders.
Unintentional Damage Claim
A common type of buyer fraud is an unintentional damage claim. This happens when a customer orders a product, accidentally damages it after receiving the item in the mail, and then falsely claims that the carrier damaged the item while it was in transit. This type of fraud can be hard to disprove, which means that you could be responsible to compensate the customer regardless of who actually damaged the item.
This is where ShipInsure steps in to mediate the situation. We handle the claim so that you don’t have to worry about the details. If there is no proof to dispute the damage claim or suspect that it is fraudulent, we will reimburse the customer immediately.
Intentional Damage Claim
Intentional damage is a more insidious kind of buyer fraud. When a customer accidently damages a product that they have recently purchased, it is understandable that they would be frustrated enough to file a claim (though frustration never justifies fraud). However, an intentional damage claim occurs when a customer intentionally damages a product after delivery and then claims that the carrier caused the damage while the item was in transit.
A common reason for this is their attempt to abuse your refund policy. If you are an eCommerce or similar online retail business, you likely have your refund policies listed clearly on your website. Though businesses offer refunds to improve customer satisfaction in the event of a damaged product, some policies leave enough room for fraudsters to abuse them repeatedly.
Again, this kind of fraud can be difficult to disprove without diligent recordkeeping on behalf of the carrier. Even then, it may be hard for you to avoid paying the customer some form of compensation. Thankfully, ShipInsure can take the financial burden off your shoulders and handle the claim accordingly.