[culturestate]

I know insurance covers it; I'm wondering how they determine what situations are likely to be fraudulent. Is customer history involved? My parents have never ordered from Amazon; if the same thing happens to them on their first purchase, what would the resolution be?

[keeperofdakeys]

They probably give users the benefit of the doubt the first time, then flag them if they do it too much. At the scale of amazon, the cost of a product is less then the cost of the time to chase up every single report of theft.