I don't see the problem. Of course fraud is a concern for them; just go on ebay to see all the "brand-name" knockoffs that people are trying to sell. You're 100% justified in not paying $22349089 for a new tag, but they have every right to not send you a new one.
Also, to be blunt, you did damage it. It wasn't their fault you needed a replacement.
"struan87 you are way better than Google!" --BCole
Pictures.