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I'm exposing one of the biggest Etsy scams happening right now and it's getting worse fast as AI tools become more advanced. Sellers are receiving refund requests backed by fake damage photos that look real at first glance but are completely AI-generated. This scam is hitting Etsy, eBay, and other marketplaces, and newer sellers are being targeted the hardest.

I walk through exactly how this scam works, show real examples of AI-altered images, and explain the subtle red flags most sellers miss. I also share a clear step-by-step protocol you can follow when a buyer claims an item arrived damaged so you don't accidentally refund a scammer.

You'll learn when to require returns, when buyers should pay return shipping, how Etsy's buyer protection actually works, and how to protect yourself with listing policies, packaging proof, and smarter shipping practices. I also explain why pushing back professionally matters and how to handle cases when Etsy gets it wrong without panicking or shutting down your shop.

If you sell on Etsy or plan to, this is something you need to understand now before it costs you money.

#etsy #etsysellers #etsybusiness #onlineselling #ecommerce #smallbusiness

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https://youtu.be/J-jysEC-rqs

https://youtu.be/XoBckxhk5iw

00:00 The Biggest Etsy Scam Spreading Right Now

00:24 How AI Is Being Used to Fake Item Damage

00:45 Live Example of AI-Generated "Broken" Products

01:35 Real Refund Scam Example With High-Value Items

02:12 How to Spot Subtle AI Image Red Flags

02:55 The Exact Scam Prevention Protocol Sellers Should Use

03:43 What to Do When Damage Photos Look Fake

04:23 How to Push Back Without Escalating Conflict

05:17 When to Cover Return Shipping vs Buyer Pays

06:04 How Etsy's $250 Seller Protection Actually Works

07:21 Why Sellers Quit Too Early and How to Handle Etsy Errors

08:40 Listing Policy Changes That Deter Scammers

09:27 Why New and Low-Sales Shops Are Targeted

10:12 Extra Proof Steps for Expensive Items

11:06 Final Warnings and Why This Scam Will Get Worse