Avoiding Empty Box Fraud

Empty box fraud is what we call an instance where a real customer using actual credit card, orders an item for themselves. Upon arrival, they then claim that they received an "empty box" or that they were short on some items.

It is not unusual that shippers mispick or miss an item when shipping, but most seasoned shippers double check their shipment to avoid later problems of returns, call tags and customer grumbling. In many cases, the problems are truly the fault of the shipper, but on some occasions, it is a case where the customer is falsely stating that they did not receive their goods or a complete order. They either then ask for a refund, or a replacement, in either case, the merchant is out the money.

This is a difficult fraud to stop, as the customer uses their real credit card and is not a situation where the merchant can screen this fraud out. The customer has the merchant at their mercy, as in card not present transactions the customer always wins the charge back.

How To Stop Empty Box Fraud

A strategy that has worked for merchants that practice this, is to take digital images of every shipment they make. They take pictures of the items in the box with the packing slip and order number visible. This confirms to the company that they did or didn't ship all the items. In a case where the company actually did not ship the proper items, they can confirm this and provide the proper solution. In a case where the customer is claiming an item is missing or that they received an empty box, the merchant can send an email to the customer "advising them" that they have digital images of the shipment and that they will confirm their claim. Merchants then have the option of sending the images to the customer, who more times then not, will "find" the item upon closer examination. This tactic has worked on many occasions and saved countless dollars as customers don't want to be caught, and will often own up to a situation.

If the customer does not "find" the item, it is important to fight the charge back, as the customer may have prior records of these claims, and with the proof of the photo image, combined the ongoing practice, the credit card issuers may find in your favor.

Internet merchants must be on guard against various internet fraud schemes, by being diligent, they can stop continuous attempts, as criminals that experience fraud success with a business, will come back for more.

Ewebsecure provides fraud prevention protection tools and deterrents to fraudsters by offering third party certification services that have also proven effective in boosting web site conversion rates by up to 20%. Learn more about our products and how they can benefit you. Learn more about how Fraud Secure™ can boost your business today.