Amazon Hit With $2.25 Million Fine for Blocking Identity Theft Victims

The Federal Trade Commission has slapped Amazon with a $2.25 million penalty for allegedly stonewalling customers who were trying to recover from identity theft. The settlement, first reported by Bloomberg, stems from charges that the e-commerce giant violated the Fair Credit Reporting Act by refusing to hand over records of fraudulent purchases made on victims' accounts.

The FTC's complaint paints a frustrating picture of the support process. Identity theft victims who contacted Amazon, the agency says, often found themselves trapped in a bizarre loop: customer service agents wouldn't release records tied to a fraudulent account unless the victim could name the person who opened it. In one case, a victim tried guessing the thief's name more than 30 times - only to have Amazon refuse to even remove the victim's credit card from the scammer's account. The agency also alleges Amazon routinely missed the 30-day deadline the FCRA sets for responding to such requests.

For its part, Amazon says it has already settled the matter and made changes to how it handles reports of identity theft. A company spokesperson told Bloomberg that Amazon has "implemented process improvements for customers who believe they may be victims of identity theft." The fine, while relatively modest for a company of Amazon's size, signals that regulators are watching how tech giants handle consumer protection - especially when victims are left chasing their own records.

Source: The Verge