5 Snohomish County sisters accused of $1M fraud scheme

A federal grand jury has indicted five sisters from Snohomish County, accusing them of orchestrating a fraud scheme that netted over $1 million by exploiting online return policies of a major clothing retailer. The sisters, aged 25 to 33, allegedly manipulated the retailer’s fast-track refund system, allowing them to receive refunds for returned merchandise before even sending the items back. They frequently purchased multiple items, requested refunds credited to gift cards, and returned the items to physical stores for additional refunds to their debit cards. This intricate scheme involved traveling across several states, showcasing a level of planning and coordination that caught the attention of federal investigators. U.

S. Attorney Tessa Gorman stated that such refund fraud schemes ultimately drive up costs for retailers, affecting consumers with higher prices. The case highlights vulnerabilities within online retail systems and the need for robust fraud prevention measures. As a result of the investigation, the retailer revised its return policies to mitigate future risks. If convicted, the sisters face severe penalties, including up to 20 years in prison and hefty fines.