A new report mentions that food delivery app services are plagued by “refund fraud,” where customers demand money back for supposedly unsatisfactory orders, even when there was nothing wrong with the received items.

Food delivery apps have experienced unprecedented growth in recent years, radically transforming consumer habits and redefining the dynamics of the restaurant industry.

According to data from Statista, the global food delivery market reached a value of $150 billion in 2024, tripling its size since 2017. In Mexico, platforms like Uber Eats, Rappi, and DiDi Food have consolidated their presence, competing for the preference of millions of users.

According to the Mexican Association of Online Sales (AMVO), 75 percent of Mexican consumers have used a food delivery app at least once.

Fraud in food delivery apps?

A new report from the fraud prevention company Incognia states that nearly half of consumer fraud in delivery apps is “refund abuse,” which cost companies an estimated $103 billion last year, according to a separate report from Appriss Retail and Deloitte.

“You can say the food wasn’t good, it was cold, or something was missing,” Incognia’s CEO and co-founder André Ferraz told Business Insider. “How do you verify these things? It’s very difficult.”

The average consumer can request a refund for several consecutive orders on most delivery apps, but too many refund requests can result in the account being flagged and “the platform won’t allow further refund requests,” Ferraz said.

“You’re abusing the platform,” he added. But some fraudsters create multiple accounts with different phone numbers and email addresses to carry out the scam and receive more refunds than allotted.

Incognia also reported that one scammer created more than 200 delivery app accounts, placed over $5,000 in orders, and received $4,163 in fraudulent refunds, meaning they obtained thousands of dollars in products for just $851.

According to CNBC, tutorials for this get-rich-quick scheme have circulated on social media and the encrypted messaging app Telegram.

“We have to stay aware of everything fraudsters are creating,” Ferraz warned.

Some companies are taking action, like Uber Eats, which promised to take “fraudulent behavior” seriously, according to Business Insider, and monitors the behavior of both drivers and customers, reserving the right to deny adjustments for “suspicious refunds.”

Meanwhile, the DoorDash app introduced a four-digit PIN system last year to address platform fraud. At the time, the delivery company stated that while the “vast majority” of consumers are honest, some make “inaccurate” or “false” reports.

Incognia also identified a second type of consumer fraud called promotion fraud, where malicious actors use multiple accounts to exploit promotions, like “repeatedly claiming a new user discount.”

According to the report, one user managed to exploit promotions worth $2,000 over the course of a month from 400 different accounts, a scheme that can drain company budgets.

“This type of abuse can deplete marketing campaign budgets, increase user acquisition costs, and distort growth metrics,” the report states.

Reed more:

These are the Chinese brands that have been most affected by Donald Trump’s tariffs

What is the net worth of Gene Hackman, the late actor from The French Connection?

When do Donald Trump’s tariffs on Mexico and Canada start? Here’s the final date (so far)