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"We clearly know that these orders are intended to defraud freight insurance. Is there any way we can stop shipping the goods?" a merchant asked his peers for help.

The reporter learned that the freight insurance provided by e-commerce platforms to reduce the cost of returns for consumers is becoming a tool for some gangs to make profits. Wang Xin, a small and medium-sized merchant, told the reporter that he recently received 10 packages returned intact one day. These orders were returned to the merchants without even unpacking the products after they were purchased. It is likely that they were intended to defraud the difference between the freight insurance and the courier fee.

"For one order, I pay 5 yuan for freight insurance, 3 yuan for freight, and 2 yuan for miscellaneous expenses (packaging and other costs). On average, I lose 10 yuan for one order." A merchant told reporters that his store's freight insurance has now risen to 5.5 yuan, and he estimated that half of the returns from his store are insurance frauds.

How to rectify the rampant freight insurance fraud "black and gray industry" is testing all parties. The reporter learned from an informed source that in response to the increase in after-sales service costs in the entire industry this year, Taobao will comprehensively optimize the current freight insurance strategy in the near future. Taobao will also further increase its crackdown on the "black and gray industry" related to freight insurance fraud. A healthier e-commerce ecosystem is expected by merchants.

Merchants involved in freight insurance fraud and "black and gray industries"

Why has freight insurance become a way to make money?

A merchant told the reporter that if you return something with freight insurance, you will generally get a 10-13 yuan freight subsidy. Most normal consumers choose couriers to pick up the item at their doorstep, and shipping is free online. To facilitate many consumers who don't have much time at home, there is also an option to "send it back by yourself" for returns with freight insurance. Some people who maliciously use freight insurance for profit have seized this option and found cheaper express delivery channels by sending in bulk, so the return freight for a single order can be reduced to 3-4 yuan, and the difference in price becomes a profit point.

The merchants interviewed summarized some of their experience in estimating "malicious orders" to the reporter. These orders are often from Taobao accounts with low credit ratings, mostly one-star numbers, and different accounts use the same address and recipient phone number to place orders. The returned goods may not be unpacked before being sent back.

Faced with rampant freight insurance fraud, some merchants are in a dilemma. Wang Xin told reporters that even if he suspected that the order was malicious, he dared not not ship the goods because the platform would punish him for delayed delivery. He could only try to report the abnormal order to the platform. Fortunately, the order was approved and the delivery could be canceled. Jewelry seller Li Xue thought about turning off the freight insurance, but was worried that turning off the freight insurance would affect traffic and exposure, affecting the store's business.

Despite the added costs of shipping and packaging, for merchants, the biggest loss caused by freight insurance fraud is the increase in freight insurance costs.

"This problem has caused us to lose thousands of dollars this month." Wang Xin told reporters that since February this year, he has felt that the problem of freight insurance fraud has intensified. In February, the freight insurance premium for his store was 0.25 yuan per order, but now it has risen to 1.1 yuan, an increase of 0.85 yuan per order. With almost 100 orders a day, it means that the freight insurance premium cost alone has risen by nearly 100 yuan a day.

Li Xue clearly felt that she was being "targeted" since May and June this year. During this period, the premium for her store's freight insurance rose from no more than one yuan per order to three or four yuan per order. At first, she didn't know that these were malicious orders. After chatting and comparing with her peers, she found that many of their return addresses were the same. She mentioned that these malicious return orders can be complained through Taobao, and after being established, they will be determined to be freight insurance fraud. However, since the insurance company still pays for freight insurance normally, the freight insurance premium can only continue to rise.

The reporter sorted out the public information released by the court and the police and found that many cases of freight insurance fraud have occurred across the country. Some individuals registered stores to activate the freight insurance function, fabricated transactions and logistics orders, and defrauded freight insurance. There are also gangs that repeatedly place orders for goods and refund them, using the freight insurance-related mechanism to conduct insurance fraud. In a three-person insurance fraud gang destroyed by the Xintian police, the gang defrauded more than 700,000 yuan in freight insurance in just over half a year. In addition to merchants, the interests of insurance companies and platforms may be harmed. Behind this, consumers' shopping experience will also be affected by the rising costs of merchants and the closure of freight insurance.

When will the "black and gray industry" of insurance fraud end?

How to solve the "black and gray industry" of freight insurance fraud?

Fu Jian, a well-known criminal defense lawyer and director of Henan Zejin Law Firm, believes that freight insurance fraud exploits loopholes in the freight insurance of e-commerce platforms to make improper profits, which not only harms the interests of merchants, but also undermines fair competition in the e-commerce market. If such behavior involves false transactions, forged evidence and other means, it may violate crimes such as fraud and contract fraud in the criminal law.

Behind this, the efforts of e-commerce platforms, insurance companies and other parties are expected. Reporters learned that Taobao and Tmall have held multiple rounds of consultations with partners on the issue of freight insurance, and some policies are expected to be put into trial operation in September this year. After this round of strategic adjustments, Taobao and Tmall merchants are expected to receive more subsidies related to freight insurance.

At the same time, Taobao will further intensify its crackdown on the "black and gray industries" of insurance fraud related to freight insurance. Taobao insiders revealed that Taobao Tmall has previously joined forces with partners and the police to focus on cracking down on gangs in Maoming, Guangdong, Pingxiang, Jiangxi and other regions who commit insurance fraud. The suspect in the Jiangxi case has been arrested and a case has been filed in Guangdong.

Zhuang Shuai, an expert in the retail e-commerce industry and founder of Bailian Consulting, analyzed that the partners Taobao needs to cooperate with are mainly insurance companies, which are the biggest beneficiaries and victims of freight insurance fraud. The main reason for the platform to subsidize freight insurance is the increase in the cost of paying insurance premiums for merchants, but in order to effectively avoid insurance fraud, the platform will most likely have to do some backend evaluation and rating work on users in the future. Upgrading the malicious insurance fraud assessment capabilities of e-commerce platforms, cooperating with insurance companies, and connecting the evaluation and rating of e-commerce platforms with insurance companies are homework that Taobao and other e-commerce platforms need to do.

In the face of the protection of the rights and interests of all parties under the "black and gray industry" of freight insurance fraud, Fu Jian suggested that e-commerce platforms should improve rules and supervision, improve technical support, establish a complaint handling mechanism, strengthen education and guidance for merchants, use algorithms to identify virtual accounts, and pay attention to accounts with a large number of orders and returns from newly registered users in a short period of time. If necessary, the use of freight insurance services can be restricted. From the perspective of merchants, merchants should strengthen internal risk control, raise the threshold for freight insurance, and strengthen cooperation with express delivery companies. For confirmed illegal acts, they can protect their own rights and interests through litigation. Insurance companies should strengthen risk assessment, strictly review claims, maintain close cooperation with e-commerce platforms, and continuously innovate freight insurance products according to market changes. At the same time, insurance companies can establish integrity files, and individuals who fabricate insurance accidents to earn insurance premiums can be promptly complained to relevant departments.