A Florida college student has been charged with orchestrating a massive retail shipping fraud scam that resulted in nearly 10,000 phony returns and over $3.5 million in lost product. The Department of Justice (DOJ) revealed that Matthew Frederic Bergwall, 21, allegedly ran the scheme, which allowed him and others to obtain luxury items such as a $41,000 Rolex watch, an electric skateboard, a Samsung Smart TV, and Reebok shoes.
According to the DOJ, Bergwall, also known as “MXB,” operated the fraud from December 2021 to April 2022. He ran a service that enabled online retail customers to input fake tracking information on packages. Bergwall now faces charges of conspiracy to commit computer and mail fraud, as well as substantive mail fraud.
If convicted on all counts, Bergwall could be sentenced to up to 45 years in prison. An 11-page indictment also orders him to forfeit all his alleged ill-gotten gains. It was revealed that Bergwall hacked into compromised employee accounts of an undisclosed multinational shipping, receiving, and supply chain management company. Using these accounts, he and his co-conspirators in Florida entered fraudulent tracking information for merchandise being transported by the management company on behalf of retailers across the country.
Customers who used Bergwall’s service could then claim that their packages never arrived and receive full refunds while keeping the items for free. This fraudulent tracking ID scheme resulted in nearly 10,000 false returns, causing online retailers to suffer over $3.5 million in lost product and revenue, as stated by the DOJ.
The indictment states that Bergwall marketed his service as “FTID” (fraudulent tracking ID) and offered it for sale. He made his first court appearance in Miami last Thursday, although it remains unclear how he pleaded. The online docket does not list his attorney.
This case highlights the growing issue of online scams and fraud in the retail industry. Authorities are urging consumers to remain vigilant and take precautions to protect themselves from scammers.
