Retailers, including Walmart and Amazon, have fallen victim to a coordinated refund fraud scheme that has cost them millions of dollars, according to Federal prosecutors. The scheme involved a crime ring known as the Artemis Refund Group (ARG), which recruited legitimate shoppers to participate in fraudulent refund claims. The shoppers would purchase an item, request a refund, and then find ways to keep the refunded item for personal use or sell it for profit. The ARG would obtain order details from shoppers and interact with customer service departments on their behalf. If the retailer offered a no-return refund, the ARG would take a percentage cut, and the customer would keep the item. In cases where a return shipment was required, the ARG would send a fraudulent package. If the retailer sent a replacement, the ARG would receive it, sell it, and split the proceeds with the shopper. The scheme also involved recruiting company insiders, including staff at Walmart’s returns department. Prosecutors estimate that thousands of shoppers used ARG’s scheme to obtain items at significantly discounted prices, sometimes up to 85% off. Amazon has acknowledged that this scam alone has cost the company over $700,000, while return fraud in general has cost other retailers “well into the millions of dollars.” In addition to the Artemis Refund Group, several Reddit and Telegram groups have been found openly sharing tips on perpetrating refund fraud, including specific advice for different retailers. Delivery drivers, many of whom are gig-workers, often face customer complaints regarding missing or damaged shipments. The full details of this refund fraud scheme were recently revealed in an indictment filed by US attorneys.