Amazon to pay $2.25 million over identity theft response claims
The FTC said Amazon denied records to identity theft victims and missed legal deadlines for responding to their requests.
By James Whitfield · Staff Writer
2 min read
Amazon will pay $2.25 million to settle Federal Trade Commission allegations that it failed to assist customers who said they were victims of identity theft. The case centers on the FTC’s claim that Amazon withheld records tied to fraudulent transactions, leaving victims unable to get information the agency says they were entitled to receive.
The FTC said Amazon’s conduct violated the Fair Credit Reporting Act, a federal law that requires companies to provide certain records to identity theft victims. According to the FTC’s complaint, customers who reported fraudulent Amazon accounts often could not get transaction records connected to those accounts.
The agency alleged that Amazon support staff refused to provide information unless victims could identify the person who had opened the fraudulent account. The FTC described the process in its complaint as one in which victims could be asked for details they were unlikely to know, including the name of the person accused of using their information.
In one example cited by the FTC, a victim tried more than 30 times to guess the name on a fraudulent account. The agency alleged that Amazon still would not remove that person’s credit card information from the account used by the identity thief.
FTC says Amazon missed response deadlines
The FTC also alleged that Amazon failed to meet the Fair Credit Reporting Act’s timing rules. The agency said the law required Amazon to respond to identity theft victims’ record requests within 30 days, and that Amazon did not do so in some cases.
The settlement resolves the FTC’s charges that Amazon knowingly violated the law, according to the agency. The FTC announced the $2.25 million payment as part of the resolution of its case against the company.
Amazon did not admit wrongdoing in the information described by the FTC. An Amazon spokesperson told Bloomberg that the company had resolved the matter with the FTC and had made process improvements for customers who believe they may have been affected by identity theft.
The FTC’s complaint focuses on the records victims sought after discovering alleged fraudulent accounts or transactions. According to the agency, access to those records can help victims understand what happened and address the misuse of their financial information.
The settlement adds to federal scrutiny of how large online platforms handle consumer data and customer support requests tied to fraud. In this case, the FTC’s allegations were limited to Amazon’s handling of identity theft record requests and its compliance with the Fair Credit Reporting Act’s response requirements.
This story draws on original reporting from The Verge.