eBay Sellers Trying To Scam U.S. Postal Service With Bogus Insurance Claims — Making Money Just On Insurance Claims.
by Anura Guruge
It is actually quite ingenious. Simple and effective.
Here is how it works. Sell an item on eBay. If the buyer RETURNS it, as is often their right, just turn around the make a CLAIM against the USPS insurance, typically included (for I think $50), that comes with Priority Mail. Genius. The ONLY party that ends up LOSING any money is the U.S. Postal Service!
The buyer gets a FULL refund, including any shipping costs, from eBay (PayPal).
The seller gets the product back.
U.S. Postal Service is stuck with a claim for ~$35.
I saw it first hand recently and yesterday (Tuesday) decided to take action about it. I called up and gave ALL the details to eBay and then went to the Post Office, met with the Postmaster, and gave him all the details too. He was very interested and promised to report it to the fraud protection folks at the US Post Office.
It just rubbed me the wrong way. As I had to repeatedly explain to eBay and the Postmaster I do not have a grievance per se. I got all my money back. Actually given my track record ebay/PayPal, going back over 10 years, PayPal refunded my money as soon as they received automatic notification that I had posted back the item. [I get the same treatment from Amazon and sometimes Google. They give me my refund before they receive the return.]
I just hate to see anybody, even an agency, in this case the USPS getting ripped-off by scam artists.