Posted August 31, 2019 06:04:55Amazon has been caught selling fraudulent Amazon gift cards to customers in the US, after it admitted it had bought $10 million worth of cards at its retail outlets.
The retailer, which has over $2 billion in annual revenue, told US officials that it was taking the cards off its shelves after it discovered they had been purchased without paying the transaction fees.
The card fraud was discovered after Amazon’s internal investigation found some customers were purchasing the cards for $10 or more each.
“We have taken steps to ensure that all customers who have used the Amazon Gift Card program receive the same prompt refunds that we receive when they redeem a card,” the retailer said in a statement.
Amazon also said it was working to identify customers who purchased cards that were never issued.
The company’s chief financial officer, Robert S. Deming, told reporters on Thursday that Amazon was working on getting its stores audited.
“We’re going to take steps to make sure that all of our customers get the same kind of prompt refunds we do,” he said.
“But we’re also going to make a concerted effort to make our stores audit systems more transparent and easier to use.”
The fraud was not just a matter of one store.
It was not an isolated incident,” Mr Deming said.
Amazon’s fraud scandal follows a string of similar frauds that have rocked retailers across the US.
Amazon has more than 3,000 retail stores in the United States, and it has been accused of engaging in widespread online fraud that has damaged millions of dollars worth of merchandise.
Earlier this year, US regulators said they were looking into Amazon’s role in online gambling, after one of its employees was arrested on suspicion of taking money from a Nevada casino.
Amazon confirmed the latest investigation in a post on its website.”
Amazon has never been responsible for the actions of any customers who paid with Amazon Gift Cards,” the company said.
The investigation comes as the company prepares to introduce a new $99-per-year subscription service that would allow customers to pay with Amazon gift certificates.