Fraudsters exploit refund policies by making hard-to-verify claims, such as food delivered cold or missing items, finds a report

Food delivery refund scams are costing platforms big, with 48% of customer fraud involving false claims about order issues, according to a new report from Incognia.

The fraud-prevention company analyzed such instances in gig delivery apps, including Grubhub and Texas-based Favor. It found that fraudsters exploit refund policies by making hard-to-verify claims, such as reporting cold food or missing items.

Some scammers also take advantage of promotional offers, using multiple accounts to claim new customer discounts.

Telegram groups and TikTok videos even teach people refund tricks, such as using “r3fund” to dodge detection and creating new accounts with different emails and phone numbers to bypass bans.

Delivery services are fighting back. Uber Eats and DoorDash have implemented fraud detection measures like PIN verification, but fraudsters constantly evolve their tactics.

Retailers lost around $103 billion to fraudulent returns in 2024, finds Appriss Retail and Deloitte.