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Conviction of 17-Year-Old in Shanghai Details How a Loophole in Refunds Allowed 11,900 Fake Returns, Leading to Losses of 4.76 Million Yuan in Resold Products Over Months Before Arrest
A 17-year-old was sentenced to six years in prison after exploiting a loophole in refunds from an e-commerce platform in Shanghai, allowing him to recover funds without returning products and causing losses exceeding US$ 600,000, according to Chinese authorities.
Discovery of the Loophole and Start of the Scheme
Last year, the teenager identified that he could insert fake tracking numbers in return requests. The system automatically released the refund, even without the return of the goods, enabling the repeated execution of the procedure without immediate blocks.
Scale of Frauds Over Months
After realizing the flaw, the teenager expanded the use of the method. Over several months, he made 11,900 false refund requests, keeping the products.
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The goods, mainly makeup, were resold on second-hand shopping platforms, increasing the reach of the scheme.
Amounts Involved and Destination of the Money
Prosecutors reported that the teenager received products valued at 4.76 million yuan, equivalent to US$ 680,000.
Through reselling, he made 4.01 million yuan, about US$ 574,000 in profit, plus full refunds, spending the amounts on smartphones, expensive clothes, video games, and outings with friends before being arrested.
Some of the expenses were described as extravagant, but the exact amounts for each purchase were not detailed. The volume of orders drew the attention of the authorities.
Judicial Process and Sentence Imposed
The Chinese justice system sentenced the teenager to six years in prison for theft. Local media highlighted that the sentence took into account the fact that he was a minor at the time of the crimes.
The young man’s name was not disclosed, following the practice adopted in cases involving minors.
The case exposed operational flaws in refund systems and reignited debates about control and oversight, although there was no mention of immediate changes to the rules.
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