China teen makes fraudulent returns on cosmetics platform, profiting US$570,000 from resale

A 17-year-old teenager in Shanghai has been jailed for making 11,900 fraudulent returns on a cosmetics platform, then making US$570,000 in profit by reselling the goods. Photo: SCMP composite/Shutterstock

A Chinese teenager has been sentenced to six years in prison after he exploited a loophole in an online shopping platform’s refund policy to make thousands of fraudulent claims.

The 17-year-old made 11,900 bogus refund applications without returning the goods and made four million yuan (US$570,000) from doing so.

It was recently reported that a court in Shanghai issued a verdict in his case in July 2025.

The loophole allowed the teenager to both keep the products he bought and resell them. Photo: Shutterstock
The loophole allowed the teenager to both keep the products he bought and resell them. Photo: Shutterstock

In March 2024, a cosmetics shopping platform reported to the police that it had become a victim of fraudulent returns.

Officers arrested the suspect, a 17-year-old surnamed Lu.

Lu allegedly noticed a loophole on an online shopping platform which allowed him to fill in fake courier numbers in his return request and get a refund without the seller receiving the returned goods.

Lu opened multiple accounts to buy products from the platform, before exploiting a loophole to keep both the goods and the refunds.

An online cosmetics shopping platform alerted the police to the scam. Photo: Shutterstock
An online cosmetics shopping platform alerted the police to the scam. Photo: Shutterstock

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