Of course they are, they send the phones to Ingram Micro for evaluation and my guess is that they are the ones making the $ on cheating people on the trade-ins. Your recourse is to only correspond with Samsung via email and save all emails. Photograph and video your phone before sending it in and when they tell you it's only worth $25 make your case with them, offer them the photos and video and tell them they have 5 days to make it right. After that, file a complaint with your state attorney general and BBB. If you do that you will get your money back.
Also, if you really want to trade in your phone with them. I would suggest prepaid credit card that you can close out after your purchase. You might have to fight them anyway to keep them from putting it against your credit rating. If you use Samsung for financing just kiss your money goodbye because you have no real recourse. I used my credit card to purchase and disputed the charge through my credit card company as well as through samsung. Chase gave me the money back while samsung is still "reviewing" it.
I got similar experience and Samsung charged me $325. Traded in a perfect Note 5 for Note 8 and turned out to be an indisputable SCAM. They kept my phone for a made up reason. Please don't waste your time and money on Samsung trade in. It's my first and last time buying directly from Samsung !!!!
They just scammed me too, I wish I would have seen this before I bought from Samsung. I have right on my invoice that I have a trade in. They never sent me a label. When I asked about it it they said no way I was getting a label because I made some mistake. Which they won't explain to me, then why does it have a trade in on my order invoice? I don't know what to do with my phone now and I don't want to throw it in a drawer.