Empty Package Refunds (EBA/DNR) Fraud

What is Empty Package Refund (EBA/DNR) Fraud?

Empty Package Refund (EBA/DNR) fraud, also known as "Did Not Receive" (DNR) fraud, is a growing concern for e-commerce businesses worldwide. This type of fraud occurs when a customer falsely claims that a package arrived empty or that they never received the ordered items, despite tracking information confirming successful delivery.

How EBA/DNR Fraud Works

Fraudsters exploit the customer-centric policies of online retailers by taking advantage of the fact that most companies prioritize customer satisfaction over extensive verification. The typical EBA/DNR fraud follows this pattern:

1. Order Placement: The fraudster places a legitimate order for high-value items.
2. Delivery Confirmation: The package is delivered and tracking shows successful delivery.
3. False Claim: The fraudster contacts customer service claiming either:
   • The package arrived but was empty (EBA)
   • They never received the package despite tracking confirmation (DNR)
4. Refund Request: They request a refund or replacement while keeping the original items.

Red Flags and Detection Patterns

Identifying potential EBA/DNR fraud requires vigilance and pattern recognition. Here are key indicators that should raise suspicion:

Prevention Strategies

Implementing a multi-layered approach to EBA/DNR fraud prevention can significantly reduce your exposure to these scams:

1. Package Weight Verification

Track and record package weights at multiple points in the fulfillment process:

• During initial packing
• At shipping handoff
• When scanned by the carrier

Weight discrepancies can provide concrete evidence to dispute false claims.

2. Packaging Documentation

Implement a systematic approach to documenting the packaging process:

• Take high-resolution photos of package contents before sealing
• Record video of the packing process for high-value orders
• Use tamper-evident packaging with unique identifiers

3. Delivery Confirmation Protocols

Enhance your delivery confirmation process:

• Require signature confirmation for orders above a certain value threshold
• Implement photo confirmation of delivery by carriers
• Use geolocation verification for delivery confirmation

Customer Risk Scoring

Developing a risk scoring system can help identify potentially fraudulent claims before they escalate:

Response Protocols

When faced with an EBA/DNR claim, having established response protocols can help your team handle the situation effectively:

1. Initial Assessment: Evaluate the claim against risk factors and customer history.
2. Evidence Collection: Gather all relevant documentation (weight records, photos, delivery confirmation).
3. Carrier Coordination: Contact the shipping carrier for their delivery records and any additional evidence.
4. Customer Communication: Maintain professional communication while investigating the claim.
5. Resolution Decision: Based on evidence, decide whether to approve, partially approve, or deny the claim.

Implementing a Comprehensive SOP

Creating a Standard Operating Procedure (SOP) for EBA/DNR claims is essential for consistent handling and fraud prevention. Your SOP should include:

• Clear definitions of EBA and DNR fraud scenarios
• Step-by-step investigation procedures
• Documentation requirements
• Decision-making criteria
• Escalation pathways for complex cases
• Regular review and update processes

Conclusion

Empty Package Refund and Did Not Receive fraud present significant challenges for e-commerce businesses, but with the right prevention strategies and response protocols, you can substantially reduce your vulnerability. By implementing a comprehensive approach that combines technology, documentation, and staff training, you can protect your business while maintaining positive customer experiences for legitimate claims.

Remember that fraud tactics evolve constantly, so regular review and updates to your prevention strategies are essential to stay ahead of new schemes and techniques.