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Cash on Delivery (COD) has gained popularity in the realm of online transactions. This method entails the recipient paying for goods at the time of delivery, as opposed to using credit. Payment terms and accepted forms may vary depending on the purchase agreement. COD is also known as “collect on delivery,” allowing for cash, check, or electronic payment upon receipt.
The surge in COD usage is attributed to advancements in financial technology. It has made online shopping more convenient and trustworthy. However, the downside is that scammers have evolved and devised new methods to deceive online shoppers. Some customers may receive calls from individuals posing as delivery executives from e-commerce companies, demanding payment for a supposed COD order. The scam involves delivering an unordered item and demanding money in return.
These scammers may go to great lengths, even requesting money from neighbours or other family members if the intended recipient is not available. Shoppers should exercise caution to avoid falling victim to this new “cash on delivery” fraud, especially as online shopping continues to thrive in India. Scammers hope that people may forget their online purchases, making them more susceptible to these deceptive tactics.
Furthermore, criminals exploit this method by deceiving individuals who make online product orders and opt for COD as the delivery method. After the recipient pays the delivery staff, the package is later discovered to be either different from the description, an unordered item, or of such poor quality that it is unusable, and no refund can be requested.
Often, the cause of this issue is the criminal’s concealment of critical information, such as the shipper’s contact details, preventing consumers from tracking, refund requests, or identifying the wrongdoer.
The data has revealed that over the last 19 months, from March 2022 to September 2023, there have been over 130,000 instances of online trading fraud, with a notable focus on scams carried out through social media platforms. These platforms are favoured contact channels for buying and selling various products, and fraudsters frequently exploit them, often opting for the COD method or shipping products with COD.
In light of this issue, Mr Prasert Chandraruangthong, Minister of Digital Economy and Society (DE), has instructed Mr Suthikiat Weerakijpanich, Advisor to the DE Minister, to oversee the meeting addressing issues related to online trading fraud, particularly those involving the Cash COD channel. The meeting was also attended by Mr Wetang Puangsap, Deputy Permanent Secretary of the Ministry of DE. The key points discussed during the conference include:
- Establishing delivery standards for logistics companies and e-commerce platforms, including procedures for delaying money transfers to stores or shippers (who may potentially engage in fraudulent activities), as well as outlining the method and timeframe for submitting complaints by product recipients.
- Developing guidelines for verifying the identity of product senders.
- Formulating guidelines for the creation of a centralised database and the exchange of information related to the transportation of goods. This includes information about potential criminals and activities suspected of being fraudulent. This information exchange will serve as a means to share data that may be deceptive to the public.
To instil trust and address the widespread issue of fraud among the public, DE has expedited efforts to resolve problems encountered by individuals who have been victims of online shopping scams. These problems primarily involve receiving products that do not align with their descriptions or not receiving the products at all, with a particular focus on cases involving the COD method, which criminals frequently exploit.
By taking these measures, Mr. Prasert Chandraruangthong is confident that the Digital Economy and Society Ministry (DE) can effectively address the issue of online trading fraud, particularly in cases involving the COD channel.
Their proactive approach aims to build trust and alleviate the concerns of consumers who have fallen victim to deceptive online transactions. Furthermore, these efforts are part of a broader strategy to enhance the overall security and reliability of e-commerce and online shopping in the digital age.
