I sent a pristine pair of Travis Scott fragments to a buyer on eBay. They filed a return claiming “item not as described.” When I got the box back, inside was a beat-up pair of fake Converse and a brick. The platform refunded the buyer from my funds, and my insurance agent told me I fell for the oldest trick in the book: “Voluntary Parting.”
Key Takeaways
- “Voluntary Parting” Exclusion: Standard theft insurance only covers items taken by force/stealth. If you voluntarily shipped the item to someone (even if they tricked you), it is not considered theft in most policies.
- The Unboxing Defense: Your only real protection is creating an indisputable chain of custody via video evidence of the return unboxing.
- Platform Appeals are Automated: In 2026, initial appeals are handled by AI. You need “hard” evidence (police report, affidavit) to trigger a human review.
- Business Policies: If you resell for profit, you need a Business Owners Policy (BOP) with “Deceptive Business Practices” or “Social Engineering” fraud coverage.
The “Why” (The Trap): The “False Pretense” Clause
This is the nastiest gap in insurance.
Your policy says: “We do not cover loss resulting from voluntarily parting with property… if induced to do so by any fraudulent scheme, trick, device or false pretense.”
Basically, because you chose to mail the package, the insurance company says you assumed the risk of the transaction. They treat it as a “bad business deal,” not a crime.
The Investigation (I Called Them)
I looked for carriers that actually cover “return fraud.”
1. eBay Authenticity Guarantee (Not Insurance, but Protection)
- The Reality: This is better than insurance. The shoe goes to eBay’s authenticator first. If the buyer returns it, it goes back to the authenticator.
- The Verdict: This effectively kills the “fake return” scam. Always sell via Authenticated programs.
2. The Hartford (Business Insurance)
- The Reality: I asked about a “Voluntary Parting” endorsement. They offer it, but usually for retail stores, not guys selling out of a bedroom.
- The Cost: Minimum premium was around $600/year.
- The Verdict: Only worth it if you are moving $100k+ in inventory annually.
3. Wax Insurance
- The Reality: They generally exclude “conversion” (theft by someone you entrusted the property to).
- The Verdict: Great for fires, bad for scams.
Comparison Table
| Scenario | Standard Homeowners | Business Policy (BOP) | eBay/Goat Authentication |
| Buyer returns rock | Denied (Voluntary Parting) | Covered (If endorsed) | Protected (Middleman verifies) |
| Buyer claims fake | Denied | Covered | Protected |
| Cost | Included | High ($500+/yr) | Fee per sale |
Step-by-Step Action Plan
You just opened the return box and found fakes.
- Do Not Touch It: Leave the item in the box. Do not handle it more than necessary (fingerprints/DNA).
- File an IC3 Report: Go to ic3.gov (FBI Internet Crime Complaint Center). File a report for Internet Fraud. The platform needs this federal report number to take you seriously.
- File a Police Report: Go to your local station. Report “Theft by Deception.” Get a hard copy of the report.
- The “Affidavit” Trick: Write a sworn affidavit stating: “I, [Name], under penalty of perjury, declare the item returned is not the item shipped.” Notarize it (online notary takes 10 mins).
- Submit to Platform: Upload the Video + IC3 Number + Police Report + Affidavit. This “evidence packet” is usually enough to override the automated refund decision.
FAQ
Q: Can I claim this on my taxes as a loss?
A: Yes. If you are operating as a business, this is a “Cost of Goods Sold” loss or a theft loss. Talk to your CPA.
Q: Does PayPal seller protection cover this?
A: Rarely. PayPal usually sides with the buyer if tracking shows “delivered.” You need the police report to flip the decision.
Q: What if I didn’t video the packing?
A: You are fighting an uphill battle. Your best bet is to compare the weight on the shipping label (outbound) vs. the return label. If you sent 3lbs and the return is 1lb, that’s your proof.
[IMAGE: Side-by-side comparison of a real Travis Scott Jordan 1 heel embossing vs. the fake returned, with a police report document overlay.]