Package Redirection ScamAre Unexpected Changes to Tracking Information a “Red Flag” for Fraud?

20 Tips to Spot Package Redirection Scams & How to Prevent Them From Happening

Package redirection scams are an all-too-familiar headache in the world of online retail.

They often start with stolen credit card details. This leads to — what looks like — a normal online order. The card's billing details are correct, and the shipping address matches up with those provided by the cardholder. But, here's where things take a frustrating turn for many merchants.

The scammer reroutes the package to a location of their choice. As the merchant, this means you’re losing merchandise to the scammer. On top of that, there’s the headache of dealing with a chargeback once the cardholder discovers the scheme.

So, what's the best way to guard against these crafty scams without accidentally turning away good customers or making the shopping experience a hassle? Let’s dive into some smart strategies you can deploy and find out.

What is a Package Redirection Scam?

Package Redirection Scam

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A package redirection scam is a form of eCommerce fraud involving a scammer who alters or manipulates shipping information to trick a cardholder, merchant, or mail carrier into delivering goods to the scammer.

Package redirection scams encompass a range of deceptive practices aimed at intercepting and misdirecting shipments. These scams exploit the intricacies of shipping processes and consumer trust, leading to significant losses for both individuals and businesses.

In a classic package redirection scam, a bad actor cunningly alters the shipping label, leading the mail carrier to mistakenly deliver the package to an incorrect address. At this new address, an accomplice is waiting to receive the goods from the carrier. This is just one of several examples, though.

Redirection tactics are also frequently employed to facilitate refund fraud attacks. The scammer requests a return, then conducts a package redirection scam to fool you into thinking you mishandled the returned package. This can sometimes be called “fake tracking ID fraud” or an “FTID scam.” You issue a refund, even though the item never actually comes back to you.

Other Package Redirection Scam Methods

As we alluded to above, package scams are highly variable. It’s not one attack method; rather, a package redirection scam could be any form of fraud by which a scammer tricks another party using false address information.

Here are some of the most common tactics to watch for:

Package Redirection Scams: Real-World Examples

So, how will you know a package redirection scam when you see it? Well, as we’ll explain a little further down, this type of scam isn’t so easy to spot in advance. That said, once you understand how these scams play out, a definite pattern emerges. 

For instance, here are a few examples of package redirection scenarios you might encounter:

20 Package Redirection Scam Red Flags

Everyone is probably aware of crude mail delivery scams like porch piracy. However, package redirection scams are just as prevalent and concerning.

These scams happen in the background. Thus, they’re just not as easy to spot. Once you know what to be on the lookout for, though, you have a better shot of keeping it from happening.

With that in mind, here are some “red flags” for FTID scams and other package redirection attacks. Some of these will apply to merchants, while others are aimed more at helping consumers avoid being targeted:

#1 |  Unexpected Changes in Tracking Information

If your package’s tracking information suddenly shows an unexpected change in the delivery route or location, it's a potential sign of tampering.

#2 |  Mismatched Addresses

Be wary if the delivery address listed in your shipping confirmation emails or online account differs from your actual address.

#3 |  Unusual Delivery Status Updates

If the status of your package inexplicably changes to “delivered” when you haven't received it, it could indicate a scam.

#4 |  Unsolicited Delivery Reschedule Notices

Be cautious of unexpected “missed delivery” notices, especially if they ask you to provide personal information or make a payment to reschedule the delivery.

#5 |  Requests for Personal Information Over Phone

Legitimate courier services rarely, if ever, ask for personal details or payments over the phone to resolve delivery issues.

#6 |  Suspicious Emails or Texts About Deliveries

Phishing emails or texts posing as courier services, asking you to click on links or provide personal information, are common red flags.

#7 |  Unusual Activity on Online Shopping Accounts

Regularly check your online shopping accounts for any unauthorized changes to your saved addresses or unusual order activity.

#8 |  Pressure to Act Quickly

Scammers often aim to create a sense of urgency, like claiming a package will be returned to the sender if you don’t act swiftly.

#9 |  Inconsistent Packaging

If the package you receive looks tampered with, or if the packaging doesn’t match the sender’s usual standards, it could be a sign of a swap scam.

#10 |  Inconsistent Contents

Receiving items you did not order, especially low-value items in place of what you were expecting, is a major red flag.

#11 |  Strange Requests

Be wary if a sender asks you to confirm receipt of a package before it arrives, or provides vague, evasive answers about shipping details. This applies to refund shipments as well.

#12 |  Poorly Designed or Unofficial Courier Websites

If you're redirected to a courier service website that looks poorly designed or unofficial, it could be part of a scam.

#13 |  Frequent Updates to Delivery Times

While it's normal for delivery times to change occasionally, frequent and erratic updates could indicate that someone is tampering with the delivery process.

#14 |  Unexpected Courier Service Fees

You receive a request for unexpected fees or charges for delivery, especially if they're requested via cash, wire transfer, or gift cards. Legitimate couriers usually won't ask for additional fees after shipping is paid.

#15 |  Suspicious Contact Information

Be alert to carrier contact information that doesn't match the official channels. For example, if an email from a supposed courier is a personal email address, or a phone number doesn't match official contact details.

#16 |  Requests for Advanced Payment for Redelivery

You're asked to make an advanced payment for the redelivery of a package that you supposedly missed. Genuine courier services typically don’t require advance payment for redelivery.

#17 |  Inconsistent Communication Channels

Be wary if the carrier is contacting you through a different channel than usual. For instance, if you typically receive updates via email, but suddenly start receiving text messages or phone calls.

#18 |  Generic or No Caller ID on Phone Calls

You receive a call from a carrier, but the caller ID is either generic or unavailable. Legitimate carriers and courier services usually have a recognizable caller ID.

#19 |  Pressure to Provide Feedback or Confirm Receipt

Scammers might pressure you to confirm the receipt of a package or provide feedback before you have actually received the item as a way to legitimize their scam.

#20 |  Lack of Official Documentation or Receipts

A courier fails to provide official documentation, like a delivery receipt or a tracking number, or if the documents provided appear unprofessional or do not contain standard information.

You should have a better understanding of how package redirection scams work and what you should be on the lookout for. So, is there any way that you can act to stop them from happening in the first place? Actually, yes, there are.

Preventing Package Redirection Scams

Merchants play a crucial role in safeguarding the delivery process. After all, it’s your products that are being redirected by package delivery scams. It’s extremely important to do everything you can to prevent that from happening and protect your customers in the process. 

With that in mind, here are 10 best practices you can implement to help insulate your business from these scams:

To wrap this up, remember to also engage in fraud prevention best practices. Remember to deploy fraud-fighting tools like address verification and CVV checks, as well as 3-D Secure. Combining these with dynamic fraud scoring can be an incredibly effective approach to stopping third-party fraud.

None of these solutions are the magic bullet against fraud on their own. But, they pack a powerful punch when used together, significantly reducing overall risk. Regardless, if you’re still feeling a bit uneasy about catching and preventing package redirection scams, It might be time to seek some expert help.

Here at Chargebacks911®, we specialize in crafting customized chargeback management strategies specifically designed for your business's unique needs. Reach out to us and discover how we can assist you in combating return fraud, friendly fraud, and a host of other threats. Let's team up and fight back!