Amazon Hit with $2.25 Million Fine for Neglecting Identity Theft Support

The Federal Trade Commission has hit Amazon with a $2.25 million fine to resolve allegations that the company neglected to assist customers affected by identity theft. According to the FTC’s complaint, Amazon is accused of not providing essential information about purchases made through fraudulent accounts, which breaches the Fair Credit Reporting Act (FCRA).

The filing describes a frustrating experience for identity theft victims who reached out to Amazon for help. They often found themselves in a convoluted situation where support agents would not share details about a fraudulent account unless the victim could identify the person who opened it. In one case, a victim made over 30 attempts to guess the name associated with the fraudulent account, yet Amazon reportedly refused to remove the victim’s credit card information from the scammer’s account. The FTC also claims that Amazon did not respond to requests for records from identity theft victims within the 30-day timeframe mandated by the FCRA.

An Amazon representative stated that the company has “resolved this matter with the FTC” and has “implemented process improvements for customers who believe they may be victims of identity theft.”