Online Fraud Investigation: What If Buyers Claim Parcels Never Arrived?

What Should I Do First if Police Are Investigating My Online Sales?

If police have contacted you about online selling fraud, find out whether you are being investigated as a suspect and whether they want you to attend an interview.

An interview under caution is a formal part of a criminal investigation. Your answers may be used as evidence, even if you attend voluntarily rather than following an arrest.

A fraud defence solicitor can explain the allegations and advise how to respond after reviewing the information available.

Your right to legal advice at the police station

You have the right to free and independent legal advice during a police interview under caution, whether you have been arrested or attend voluntarily.

This right is not dependent on your income. You can ask for a duty solicitor or arrange representation through a solicitor who undertakes police station work.

Once you request legal advice, questioning will normally be delayed until you have received it, subject to limited exceptions.

A solicitor can review the allegations, explain your options and advise you during the interview. Asking for legal representation does not suggest that you are guilty.

Why silence carries specific risk in England and Wales

You have the right not to answer police questions, but remaining silent can have consequences in some circumstances.

Under the Criminal Justice and Public Order Act 1994, a court may draw an adverse inference if you fail to mention a fact during questioning that you later rely on in your defence, where it would have been reasonable to mention it at the time.

However, a conviction cannot be based solely on an adverse inference from silence.

This does not mean you must answer every question. A solicitor can advise whether to provide an account, make a prepared statement or exercise your right to silence after considering the available evidence.

Preserving your records immediately

Keep your original listings, buyer messages, dispatch receipts, tracking references, payment records and refund correspondence.

Do not delete or alter material because it appears incomplete, embarrassing or unfavourable. Deliberately destroying evidence to interfere with an investigation may create separate criminal risks. Where possible, preserve complete message histories and original documents rather than relying only on screenshots.

A solicitor can help you organise the records and identify what may be relevant to the allegations.

How Can I Show That I Dispatched the Parcels?

The most useful approach is to organise your evidence separately for each disputed order.

Proof that a parcel was posted is not the same as proof that it was delivered. Both may be relevant, but they establish different facts.

What proof of posting covers and what it does not

A Certificate of Posting from Royal Mail or another recognised dispatch receipt can help establish that you handed a parcel to a postal operator.

The record may confirm the posting date, service used and details identifying the item. However, proof of posting does not establish that the parcel reached the buyer.

In an online selling fraud investigation, this distinction matters. Evidence that you genuinely dispatched an item may support your account, even where the carrier cannot confirm delivery.

It does not automatically resolve every allegation, particularly if police are also examining whether the listing accurately described the goods.

Tracked services and what the data shows

Tracked delivery services may provide records showing when a parcel entered the carrier’s network and whether a delivery event was recorded.

For example, Royal Mail Tracked services can provide acceptance and delivery information, although the records available depend on the service and how the parcel was processed.

A missing delivery scan does not necessarily mean that you failed to send the item. It may reflect a postal delay, unsuccessful delivery or incomplete tracking information.

If you used an untracked service, you may have proof of posting without any delivery confirmation.

Your solicitor can assess what each record establishes and how it relates to the specific buyer complaint.

Building a complete order-by-order record

For every disputed transaction, gather the original listing, item description, photographs, price and payment confirmation.

Add any dispatch receipt, tracking record, buyer messages and refund or dispute correspondence. Arrange the information chronologically so it is clear what happened before payment, when the goods were dispatched and how the complaint developed.

For example, a listing showing an accurately described product, followed by proof of posting and messages addressing a delivery delay, may support an explanation that differs from deliberate fraud.

Investigators may also examine whether the goods existed and whether the representations made to buyers were accurate.

A complete record allows each transaction to be considered on its own evidence.

Dispatch evidence and criminal intent

A parcel going missing does not automatically mean that the seller acted dishonestly.

For fraud by false representation, the prosecution must establish that you knowingly made a representation that was or might be false or misleading, acted dishonestly and intended to make a gain or cause loss or the risk of loss.

Evidence that you genuinely dispatched the goods may be relevant when those allegations are assessed.

However, postal records alone may not answer questions about the accuracy of a listing or what you intended when taking payment.

Marketplace seller-protection rules are separate from criminal law. A platform may reject a refund appeal because its delivery requirements were not met, even where that does not establish a criminal offence.

Can Evidence of Suspected Refund Abuse Help My Defence?

Evidence that a buyer made a dishonest refund claim may be relevant to an online selling fraud investigation. However, suspected refund abuse should be supported by records rather than assumptions about why a buyer complained.

Your solicitor can assess whether the evidence helps explain particular transactions or a wider pattern of disputed orders.

What refund abuse involves

Refund abuse can include falsely claiming that goods were never received, returning a different item or submitting inaccurate information to obtain a refund.

For example, a buyer might report non-delivery despite tracking information recording delivery. However, a delivery scan does not automatically prove that the buyer received the correct parcel. Delivery errors and disputes over addresses can still occur.

The evidence must be considered before concluding that a complaint was dishonest.

How buyer conduct evidence is gathered and used

Marketplace dispute histories, tracking records and buyer messages may help establish whether refund claims were consistent with the delivery information.

You may also identify repeated complaints or inconsistencies in particular orders. For example, if a buyer claimed non-delivery after confirming receipt in an earlier message, that exchange may be relevant.

Preserve the original records and provide them to your solicitor.

Avoid contacting buyers to challenge their accounts or asking others to obtain statements on your behalf without legal advice.

Limitations of this evidence

Evidence suggesting refund abuse in one transaction does not automatically disprove fraud allegations involving other orders.

Police may investigate whether there were genuine delivery problems, dishonest buyer claims or misrepresentations by the seller. More than one explanation may apply across different transactions.

Your defence should therefore distinguish what the records establish from what you suspect happened.

Can Police Access My Selling History and What Might They Look For?

Police may obtain records from marketplaces, payment providers and other organisations where they have a lawful basis to do so.

The information requested and the legal powers available, depend on the circumstances of the investigation.

Legal powers used to obtain platform records

Investigators may request records from a marketplace or payment provider voluntarily or obtain material through relevant statutory powers.

Depending on the type of information, they may use a production order, search warrant or another lawful procedure. Certain confidential business records and other protected categories of material may fall within the special procedures under the Police and Criminal Evidence Act 1984.

Where information is held abroad, investigators may need to use international cooperation arrangements or another applicable legal route.

Not every request for marketplace information requires the same type of order.

The fact that police have sought records does not mean you have been charged. It may form part of their investigation into whether an offence occurred.

What investigators typically examine

Police may review your listing history, order values, payment records and buyer communications. They may also examine refund claims, account restrictions, payout activity and any linked selling accounts.

The purpose is to understand how the transactions operated and whether the evidence suggests dishonest conduct.

However, a high number of complaints does not automatically establish fraud. The available evidence and the reasons for those complaints still matter.

The scope of a production order

A production order generally identifies the material that must be provided and the legal conditions governing the request. It does not necessarily authorise investigators to obtain every record held by the platform.

The scope depends on the particular statutory power and the terms of the order. A solicitor can examine the basis on which records were obtained and consider whether any challenge is available.

If police contact you directly requesting information, obtain advice about the request and any legal obligation to respond before providing material voluntarily.

How Can I Challenge a Hold on My Marketplace Funds?

First, establish who imposed the restriction.

A marketplace payout hold, a payment provider restriction and a court-imposed freezing order are different measures. Each has its own procedure for review or challenge.

Identifying which type of hold applies

A marketplace may suspend payouts because of unresolved buyer disputes, account-verification concerns or suspected breaches of its seller policies.

A payment provider such as PayPal or Stripe may separately restrict access to funds under its terms and applicable financial regulations.

A court-imposed freeze is different. It is made under statutory powers and may be connected to a criminal investigation or suspected unlawful property.

Check the notice or account message to establish who imposed the restriction, what reason was given and how it can be challenged.

If you have received a court order, the legal process will depend on the type of order involved.

Platform payout holds and how to respond

Review the marketplace’s stated reason for freezing your account and the available appeal procedure. Gather your order records, dispatch evidence and dispute history before submitting an appeal.

Keep copies of correspondence with the platform, including dates and reference numbers. A platform may ask for additional proof of delivery or information about particular transactions.

However, overturning a payout hold does not automatically end a police investigation. The platform and criminal processes are separate.

Payment provider restrictions

If your payment provider has frozen funds or restricted your account, review its complaints procedure and the explanation provided. The restriction may relate to disputed transactions, account verification, suspected fraud or compliance requirements.

Where the provider is regulated in the UK, an eligible complaint may be referred to the Financial Ombudsman Service after the relevant complaints process has been followed.

Eligibility and time limits apply, so the available route depends on the provider and circumstances.

A successful complaint about a payment restriction does not determine whether a criminal offence occurred.

Court-imposed freezes and restraint orders

A restraint order under the Proceeds of Crime Act 2002 may prevent you from dealing with assets while criminal proceedings or confiscation are being considered.

These orders are generally dealt with by the Crown Court and can affect bank accounts, property and other assets.

An account freezing order is different. It can restrict money held in an account where the statutory conditions concerning suspected recoverable property or intended unlawful use are met.

In England and Wales, account freezing orders are generally made by the Magistrates’ Court.

You may be able to apply to vary or set aside an order, but the correct procedure depends on which order has been imposed.

For example, you may need access to funds for living expenses or business costs. Whether the court can permit this depends on the order and applicable legal requirements.

A solicitor can review the restrictions and advise on the appropriate application.

Even if a freeze is lifted, the underlying criminal investigation may continue.

What Penalties Could I Face if Convicted of Online Selling Fraud?

Online selling fraud can carry serious criminal penalties, although the sentence depends on the offence and the circumstances.

The value of the alleged fraud, the number of transactions and your level of involvement may all affect the outcome.

Which offence is likely to be charged

Fraud by false representation under the Fraud Act 2006 is a common charge in cases involving allegedly dishonest online sales.

The prosecution must establish that you made a representation you knew was or might be false or misleading, acted dishonestly and intended to make a gain or cause loss or a risk of loss.

For example, deliberately advertising goods you did not possess or intend to supply could support an allegation where the other requirements are established.

Actual financial loss is not always necessary for the offence to be complete. The maximum sentence in the Crown Court is ten years’ imprisonment.

Larger or organised schemes may also involve allegations of conspiracy to defraud, depending on the evidence.

How the Sentencing Council guideline works

Courts use the Sentencing Council’s fraud guideline to assess culpability and harm. Culpability may depend on planning, the defendant’s role, the duration of the conduct and whether vulnerable people were targeted.

Harm is assessed primarily through the financial loss caused or intended, alongside the impact on victims.

For example, a sustained operation involving numerous dishonest transactions is likely to be assessed differently from a single opportunistic offence.

The court then considers aggravating and mitigating circumstances when determining the sentence.

Your actual involvement and the evidence relating to each transaction are therefore important.

Financial orders following conviction

• A fraud conviction may lead to financial orders as well as a custodial or community sentence.
• A compensation order may require payment to victims for losses caused by the offence.

Confiscation proceedings under the Proceeds of Crime Act 2002 may also follow where the relevant conditions are satisfied.

The court can assess the benefit obtained from criminal conduct and the amount recoverable, with different rules applying in cases involving a criminal lifestyle.

These consequences are separate from refund claims, chargebacks and civil proceedings brought by buyers.

Sentences available below imprisonment

Not every conviction for online selling fraud results in immediate imprisonment. Depending on culpability, harm and the circumstances, the court may consider a fine, community order or suspended sentence where legally available.

Previous convictions, personal circumstances, a guilty plea and other relevant factors can affect sentencing. The maximum sentence represents the legal limit rather than the likely outcome in every case.

A solicitor can explain the guideline range that may apply to the specific allegations.

Speaking to a Solicitor About Your Position

If buyers have reported missing parcels, your selling account has been frozen and police are investigating you for fraud, a solicitor can help you assess the evidence and respond to the allegations.

This may include reviewing your listings, dispatch records, communications and refund history, as well as advising on any interview under caution.

A fraud defence solicitor can also explain how a marketplace restriction differs from a court-imposed asset freeze and what options may be available to challenge it.

Ashmans Solicitors advises individuals facing fraud and financial crime investigations in England and Wales.

Book a Consultation to discuss your circumstances and next steps.