Recently, the Shanghai police cracked a case involving fraud perpetrated through the ‘express refund’ mechanism on an e-commerce platform. The suspect purchased second-hand mobile phones, swapped out their components, and applied for full refunds under false pretences, thereby making illegal profits in excess of 170,000 yuan. Currently, a man has been placed under criminal detention on suspicion of fraud, and the case remains under further investigation. The origins of the incident can be traced back to early 2026. A second-hand trading platform reported to the Shanghai police via the “police-business collaboration” mechanism that there had recently been multiple instances of abnormal returns on the platform. Some buyers, after purchasing mobile phones, applied for refunds on the grounds of a “seven-day no-reason return” or that the phone “would not switch on”. However, upon receiving the returned goods and conducting inspections, the platform discovered that most of these phones had been fitted with defective or damaged components, severely disrupting normal business operations. Upon receiving the report, the police initially concluded that this was likely a case of fraud exploiting the platform’s ‘express refund’ policy. Subsequently, the Criminal Investigation Department of the Shanghai Public Security Bureau, in conjunction with the Yangpu police, set up a task force to investigate. Through analysis of order details, delivery addresses, logistics records and the flow of funds, the suspect, Mr Jiang, gradually came to the attention of the police. The investigation revealed that Jiang had begun planning and carrying out this series of offences in May 2025. He first contacted his friend, Wang, asking him to purchase second-hand mobile phones on his behalf, offering a “fee” of between 20 and 80 yuan per order. Wang then organised relatives and friends to purchase 18 mobile phones in batches via second-hand platforms, which he subsequently handed over to Jiang. Upon receiving the phones, Jiang immediately dismantled them to remove high-value original components, such as screens and motherboards, replacing them with inferior or damaged parts purchased cheaply on the second-hand market. He then applied to the platforms for returns and refunds, citing reasons such as ‘the phone is unusable’ or ‘there are quality issues’. As the platforms’ refund processes were relatively swift and refunds were processed without thorough inspection, Jiang was able to carry out this scheme successfully on multiple occasions. Once the refund was processed, Jiang would resell the original parts he had removed, making a profit of around 2,000 to 3,000 yuan each time, thereby illegally amassing substantial gains. In mid-April, after fully mapping out the criminal network, the police apprehended Jiang. Upon his arrest, Jiang confessed that he had long been engaged in the repair and recycling of second-hand mobile phones and was well acquainted with the platform’s return policies. Believing that the platform’s vetting process for returns was insufficiently rigorous, he carried out his first scheme on a ‘trial basis’; following its success, he gradually expanded the scale of his operations and placed multiple orders with the assistance of others. Jiang has now been placed under criminal detention by the Shanghai police on suspicion of fraud, and the case is currently under further investigation. The police remind the public that the after-sales and refund mechanisms of e-commerce platforms are intended to protect consumer rights and enhance the shopping experience, but must never be exploited for illegal gain. Any act of fraud committed by exploiting loopholes in the rules will be severely punished by law.