I Traded Shoes via Mail and Got Scammed: Cyber Fraud Coverage

I arranged a trade on Discord: My Travis Scott Fragments for his Off-White Chicagos. We agreed to ship at the same time. I sent my tracking number. He sent his. My package arrived at his house. His package never arrived at mine—because he gave me a fake tracking number. I lost a $1,500 shoe and got nothing. My agent called it “Voluntary Parting” again.

Key Takeaways

  • Mail Trades are “Voluntary Parting”: Because you willingly mailed the package, it is not “theft” in the eyes of a standard policy. It is a “bad deal.”
  • Tradeblock is Safer: Using a middleman service (like Tradeblock) that verifies both pairs before releasing them is the only way to insure the transaction itself.
  • Cyber Crime Endorsements: Some modern renters policies (like Lemonade or specialized tech packages) offer “Cyber Event” or “Online Fraud” coverage, but limits are usually low ($500).
  • The Police Report is Leverage: You need to file a report for “Theft by Deception” (Wire Fraud) to have any chance of a claim.

The “Why” (The Trap): The Transfer of Title

When you mail a package to someone, you are effectively transferring possession.
If they tricked you, that is a crime (fraud), but standard property insurance covers physical loss, not social engineering.
Unless your policy specifically has a “Social Engineering” or “Fraud” rider, you are out of luck.

The Investigation (I Called Them)

I looked for insurance that covers “being scammed on the internet.”

1. Tradeblock (The Middleman)

  • The System: You ship to them. He ships to them. They check both. If he sends a brick, they send your shoes back to you.
  • The Cost: ~$40-50 per trade.
  • The Verdict: This fee is your insurance. Pay it.

2. Lemonade (Cyber Liability)

  • The Feature: They have an add-on for cyber fraud.
  • The Limit: It covered “stolen funds” but was vague on “stolen property” via scam.
  • The Verdict: Unlikely to pay out for a sneaker trade, more for credit card hacking.

3. UPS/FedEx Insurance

  • The Reality: If you insure the package, you are insuring against UPS losing it. You are not insuring against the receiver stealing it. If tracking says “Delivered,” UPS is done.

Comparison Table

MethodCostProtection against Scams
Raw Trade (Discord/IG)$0None (High Risk)
PayPal Invoice3% FeeMedium (Financial protection, not item protection)
Tradeblock / Middleman~$50High (Physical Verification)

Step-by-Step Action Plan

You sent your shoes and got ghosted.

  1. File an IC3 Complaint: The FBI Internet Crime Complaint Center (ic3.gov). This is wire fraud.
  2. File a Police Report: In his jurisdiction (where you mailed it). Call the non-emergency line of his local PD. “I would like to report a Theft by Deception.” Give them his address.
  3. Knock on the Door (Virtually): If you have his address (from the shipping label), send a certified letter demanding return of property or you will pursue legal action. Sometimes this scares a kid into sending them back.
  4. Accept the Loss: If you didn’t use a middleman, you likely won’t get an insurance payout. Learn the lesson: Never ship first.

FAQ

Q: Does PayPal “Goods and Services” cover trades?
A: No. PayPal covers purchases. If no money changed hands (just item for item), their protection usually doesn’t apply. You need to “buy” each other’s shoes for full market value ($1,500 each) to be safe.

[IMAGE: Graphic showing a “Tradeblock” success screen vs. a Discord DM where the user has been blocked.]

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