Amazon Hit With $2.25 Million Fine Over Identity Theft Response
A Kafkaesque loop of bureaucratic hurdles has cost Amazon $2.25 million, following a Federal Trade Commission settlement over the company’s refusal to assist identity theft victims. The agency accused the retail giant of systematically violating the Fair Credit Reporting Act by withholding records vital to clearing fraudulent charges.
Victims attempting to reclaim their accounts were routinely stonewalled by support staff who demanded the names of the thieves before releasing transaction records. In one documented case, a customer made over 30 attempts to identify an anonymous fraudster, yet Amazon refused to remove the victim’s compromised credit card data from the illicit account. Beyond the obstruction, the FTC found that the company consistently missed the 30-day deadline required by federal law for responding to identity theft claims.
An Amazon spokesperson confirmed the company has resolved the dispute and implemented new process improvements for those reporting identity theft. The settlement marks a significant rebuke of the company’s internal support protocols, which prioritize rigid verification over consumer protection.
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