17-Year-Old Raises 11,900 Fake Refund Requests To Pull Off Rs 5 Crore, Spends On Shopping & Friends

A loophole in an online shopping platform turned into a goldmine for a 17-year-old teenager in China who discovered he could exploit refund rules to his advantage. Over the course of many months, he filed thousands of fake refund requests, resold goods and earned a fortune of over four million yuan (approximately around Rs 5.18 crore).

According to a report in the South China Morning Post (SCMP), the case drew attention after the cosmetics platform he targeted reported suspicious activity to police in March 2024.

Chinese Teen Commits E-Commerce Fraud

As per the report, the teenager, surnamed Lu, used multiple accounts to buy items on the platform. He then submitted false courier tracking numbers and claimed that the products had been returned.

Over the course of 11,900 orders, he obtained products worth 4.76 million yuan (Rs 6.16 crore) without sending them back. He later sold them on second-hand platforms and earned a profit of 4.01 million yuan (over Rs 5 crore).

Lu spent the money on luxury items such as new mobile phones, branded clothing and outings with friends. No detailed information about him or the platform was revealed.

Legal Consequences

The Shanghai court delivered its verdict in July last year. Because Lu was a minor when he committed the crimes, his sentence was reduced to six years in prison. Under Chinese law, people who obtain property by fraud can face a minimum of 10 years if the sum involved is particularly large.

China Fraud Concerns In E-Commerce

The case comes amid increasing scrutiny of fraudulent refund claims in China. Last year, media outlets reported buyers misusing AI-generated images to claim refunds. In one incident, a woman purchased 225 items from a single online shop and returned only cheap alternatives while keeping the rest. This caused a loss of 54,000 yuan (nearly Rs 7 lakh) to shop owner. She later transferred 30,000 yuan (Rs 3.88 lakh) to the seller in an attempt to reduce the damage but the seller insisted she take legal responsibility.

As per the report, many sellers have criticised online platforms for creating policies that encourage quick refunds to attract buyers, which can backfire when exploited. In response, some of China’s major e-commerce sites announced in April last year that they would limit or remove the “refund only” option to curb abuse.