Fake Tracking ID (FTID), a package redirection scam, involves manipulating the tracking information on a label. Shipping companies only require the tracking information on a label to scan it. Scammers will manipulate the label to maintain scan functionality, which often triggers a refund issuance, while ensuring it gets lost. This manipulation varies in sophistication, ranging from intricate alterations to simple “cut and paste” methods. The tracking will often show as delivered to a random warehouse, designated for pickup, or will get lost once it passes the label scan at distribution. Ultimately, the recipient (if there is one) will have no idea who the package belongs to as the rest of the label, including return address, has also been edited.
Detecting Fake Tracking ID Manipulation
Sometimes, scammers manipulate tracking details to show delivery to a different address within the same zip code. This can trick some shippers into accepting it as proof of successful delivery, leaving your business vulnerable to fraud. To determine if your business is being targeted, ask your team the following questions.
- Are refunds being issued upon label scan? If refunds are automatically processed as soon as a return label is scanned, scammers may exploit this by generating false scans or tracking updates without ever returning the actual item.
- Has your warehouse received numerous empty or incorrect packages? Fraudsters may send empty boxes, unrelated items, or even decoy packages labeled with your information. This enables them to exploit your return policy while appearing to comply with the process.
- Have you noticed an increase in lost or missing packages? A rise in lost or undelivered packages could indicate that scammers are manipulating tracking details to show a false delivery, preventing the legitimate return process from being completed.
Next Steps: How to Prevent Fake Tracking ID Scams
To combat fake tracking ID fraud, regularly audit return shipments and tracking data to identify unusual patterns and implement the following preventative measures.
- Issue refunds only after inspection: Instead of processing refunds when a return label is scanned, wait until the returned items have been received and successfully inspected at the warehouse.
- QR code-based returns: Update your return process to require customers to present a QR code at a designated shipping drop-off location. The shipping center can then generate the return label on-site, ensuring the tracking information remains secure and untampered. Partnering with shipping providers can help streamline and automate this process.