Does "free returns" protect me from return fraud?

[flownzone]

I'm not worried about my items being returned for any other reason; shipping cost isn't too bad for the item I am considering. For example however, if someone were to buy my $650 camera and return their broken one, how protected am I? How many hoops do I have to jump through to issue a 50% partial refund? Which by the way, from what I was told, you still pay the total item cost worth of eBay FVF. So I'm walking away with a broken camera and more like 225$ back; if they even return a broken camera. Can anyone share their experiences with free returns in such a scenario? Thanks.