Cash on Delivery (COD) scam explained: How it works and things to avoid them

Scam

• Fake parcels used in cash on delivery scams to collect money
• Victims charged for unsolicited, worthless packages
• Verify orders; refuse unknown parcels to avoid COD scams.

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Cash on delivery scams are increasingly targeting households and small businesses by sending unsolicited parcels and collecting money at the doorstep. Victims assume the package was ordered by a family member or colleague and make the payment before discovering the box contains useless items such as stones, paper, or low-value products.

The fraud relies on confusion, urgency, and the trust associated with courier services.

How the COD scam works

The process begins with fraudsters obtaining personal details such as names, phone numbers, and addresses. This information often comes from data leaks, public listings, or compromised online seller accounts.

Using this data, scammers ship parcels through logistics companies and declare a cash amount to be collected on delivery. When the courier executive arrives, the recipient is asked to pay the stated amount. Since COD is a standard payment method across e-commerce platforms, many people comply without verifying the order.

Once payment is collected, the courier company transfers the money to the sender’s bank account as part of its regular settlement cycle. The delivery agent has no visibility into the package contents and only follows the collection instructions.

In some cases, scammers send advance messages or phone calls claiming a parcel is on the way to create familiarity. Another variation involves asking for a “delivery charge” or “customs fee” for a supposed gift.

Why scammers use cash on delivery

COD avoids digital payment protections such as chargebacks, authentication, and fraud monitoring. The transaction happens physically at the doorstep, making it harder to reverse once processed.

The method also exploits the social pressure of a delivery interaction, where recipients feel compelled to pay quickly.

How to avoid falling for COD scams

Keeping track of all online orders is the first line of defence. Verifying deliveries with family members or office staff prevents accidental payments.

Consumers can refuse any package they do not recognise. Courier services are required to mark the delivery as rejected and return it to the sender.

If payment has already been made, immediate action is critical. Contact the courier company’s support team with the tracking or airway bill number to report fraud before settlement is completed. Victims should also file complaints through cybercrime authorities such as National Cyber Crime Portal to support investigation and recovery efforts.

COD scams rely on surprise deliveries, leaked data, and quick doorstep payments. Verifying orders, refusing unknown parcels, and reporting incidents quickly remain the most effective ways to prevent financial loss.