According to the consumer advocate website Clark.com, the scam starts by ordering high-value items on a stolen credit card. The merchandise then ships to the cardholder’s home. While the cardholder tries to dispute the charge, the scammers will send a return shipping label, packaging, and instructions to return the item.
The labels instead send the item to a different address. Often, the address belongs to someone working from home who may unknowingly be part of a reshipping scam.
An analysis from several internet and computer security experts says that these reshipping mules are referred to as “drops” online, meaning “drops for stuff.” They are often part-time workers deceived by scammers posing as a company.
Drops receive the packages before forwarding them to criminals that sell them on the black market. If a business ships the items, they could lose the merchandise cost, shipping fees, and chargebacks to the customers’ credit card.
However, Clark.com warns that if a customer sends the merchandise to the drop, the retailer could hold them responsible for the cost. They advise all customers to sign up for bank account email alerts and never ship anything you didn’t order without verifying the return address.