Aug 2, 2026
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Add us on GoogleA YouTuber running a return fraud scheme has been arrested in Chicago, after collecting what authorities say is $250,000 worth of high-end designer fragrances.
Phillip Carter has been charged with three counts each of mail fraud and theft by deception, in a case authorities call “Operation Eau de Fraud,” according to CBS Chicago.
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Carter runs a YouTube channel where he reviews expensive perfumes. In one video posted one year ago, Carter touts his more than 1,000 fragrances and breaks down what his favorites are so far. The problem is, it appears his collection, including fragrances he gifted viewers, was stolen.
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Nordstrom duped out of thousands of dollars
Nordstrom caught on to a trend where Carter would order expensive fragrances and request a refund after they shipped. Carter first placed an online Nordstrom order for 39 fragrances at a total cost of $11,915, per CBS Chicago. After the items arrived, he informed the retailer that the fragrances were supposed to be gifts, but recipients didn’t want them.
A police report cited by the CBS affiliate said that Carter claimed the packages were, “in perfect condition and haven’t been opened.” But when he returned the perfumes, Nordstrom realized the bottles were tampered with. Some bottles were missing or filled with molding clay.
Carter allegedly repeated his swindle at least two more times with Nordstrom. In March, authorities say he ordered eight fragrances for $2,145. And later, another four fragrances were ordered for $3,085.
In July, police showed up to Carter’s home with a warrant, and they discovered 714 bottles of perfume, worth $250,000. Many of the boxes were previously opened and resealed using a hot glue gun and ready to be shipped.
Carter is accused of defrauding Nordstrom of just under $15,000. However, authorities believe more retailers were duped, as well, and are working to figure out exactly how many.
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Retail return fraud is rampant
The Chicago case provides a snapshot of what the retail industry regularly faces. Retailers are increasingly navigating return fraud, in the form of empty packages, swapped out items and claimed failed deliveries.
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A report by Appriss Retail and Deloitte found that shoppers returned $685 billion worth of items to retailers in 2024. About 15% of that — or $103 billion — was considered fraudulent. Many shoppers have openly admitted to partaking in return fraud, according to Business Insider.
“There seems to be this mentality that consumers feel entitled to do it,” Jessica Meher, senior vice president of marketing at Loop Returns, told the publication.
Return policy abuse really runs the gamut. It’s common for shoppers to order more than one size of something in order to find the best fit and return the rest. This is called “bracketing.” Meanwhile, “wardrobing” inches a little bit closer towards fraud territory. It involves buying and wearing an outfit to an event and returning it for a full refund.
“In an effort to avoid customer dissatisfaction, retailers will process the consumers’ refund before items are properly assessed and any damage identified,” Thomas Borders, the Vice President of Operations for Inmar Supply Chain, a reverse logistics company, told Business Insider. “This results in premature refunds, leaving retailers with very little recourse.”
Then there are cases like Carter’s in Chicago where consumers stick different products in boxes or worse, lie and say they never received a package or it was stolen. In line with keeping customers happy, retailers will issue refunds to ensure honest customers receive the best service and keep coming back.
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Danni Santana is a journalist based out of New York City with a decade of experience reporting and editing business stories about retail, restaurants, sports, and personal finance.
