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Return Fraud Plagues Retailers

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Recognizing Return Fraud


Does your return policy allow stolen merchandise to be returned for cash? We certainly hope not! However, the National Retail Federation's Return Fraud Survey says criminals often take advantage of retailers with relaxed return policies.
The survey reports that an astonishing 95.2% of retailers have experienced this most popular form of return fraud in the past year. While many retailers are tightening policies, some at the expense of customer service, the retail industry will still lose $9.6 billion in return fraud.
Common Types of Return Fraud

The first step to avoid becoming a victim is to be able to recognize the scam. Some of the more common types of return fraud are:

  • The return of stolen merchandise
  • The return of merchandise purchased with fraudulent or counterfeit tender
  • The return of used merchandise
  • The return of merchandise using counterfeit receipts
Signs of Return Fraud

Spotting the above types of return fraud may be difficult for some retailers. Other signs the retail store is being adversely affected by returns are:

  • High shrink rate
  • Dramatic increase in number of returns
  • Return policy not being enforced
  • Increasing number of markdowns due to returns
http://retail.about.com/od/lossprevention/a/retail_returns.htm
 
Return Fraud Causing Retailers to Tighten Return Policies

As return fraud continues to be a concern for the retail industry, many retailers are tightening their policies to combat the growing crime. Better Business Bureau recommends consumers fully understand these policies to avoid unnecessary stress.

Return fraud is the act of somehow defrauding a retail establishment via the return process. Three common methods of return fraud are purchasing merchandise for short-term use and then returning the item, returning stolen merchandise, and using reused, stolen or falsified receipts to return merchandise for a profit.

To crack down on this type of crime, many retailers are adopting stricter return policies, such as requiring receipts and making customers show identification when returning items. Some businesses only allow in-store credit for returns.

To put you in the best position for a happy return or exchange, BBB offers this advice:

Know and understand the seller’s return policy.
Most return policies will be listed on a company’s website or on the back of the receipt. Make sure to fully understand what’s required for a return or exchange, and if you have questions, call the store directly and ask about your specific situation.

Keep original packaging.
Some stores may require products be returned in original purchase condition, unused or un-opened.

Bring identification and credit cards.
Some retailers will ask for identification when making a return, as well as the credit card used to purchase the item.

Don’t expect cash back.
If you don’t have the original receipt for the item you’re returning, chances are you will only receive store credit or be allowed to exchange the item. Even with a gift receipt, many stores will only offer store credit.

Read the warranty first.
If a gift you received is damaged or defective, read the warranty. In some cases, warranties exempt retail stores from product liability and require consumers to mail the product directly to the manufacturer in order to receive monetary refunds, credit or product replacement.

Don’t delay.
In almost every case, a store will require an item be returned within a specific time frame. If you wait too long, you may miss your chance at returning the item.

http://greatermd.bbb.org/article/return-fraud-causing-retailers-to-tighten-return-policies-31617
 
Holiday Season Return Fraud to Cost Retailers $2.9B

Fraudulent returns will cost retailers an estimated $8.9 billion this year, with nearly one-third $2.9 billion taking place during the holiday season. The National Retail Federation 2012 Return Fraud Survey estimates that 4.6% of holiday returns are fraudulent.

According to the survey, completed by loss prevention executives at 60 retail companies, nearly all (96.5%) of retailers have experienced the return of stolen merchandise during the past year, and 84.2% have experienced returns of merchandise bought with fraudulent or stolen tender.

Wardrobing the return of used, non-defective merchandise such as special occasion apparel and certain electronics is also a big issue, with 64.9% of respondents saying they have been victims of this activity. Employee return fraud or collusion with external forces was an issue for eight in 10 responding retailers.

For the first time, NRF asked loss prevention executives about return fraud with e-receipts: 19.3% reported that they have dealt with this problem. With online sales continuing to increase, 86% of respondents say they allow customers to return merchandise purchased online in their stores, but they estimate that 3.9% of these returns are fraudulent.

"Many shoppers love the convenience and flexibility that digital receipts offer them, and unfortunately criminals are finding ways to manipulate them," said NRF vice president of loss prevention Rich Mellor in a statement.

One way retailers are combating returns fraud is by asking for ID when returns are made: 73.2% now require customers returning items without a receipt to show identification. For customers with a receipt, only 7.1% of retailers also ask for ID when returns are made.
 
stevek173
Bastards are ruining it for everyone. I hope each and every one of them gets caught and prosecuted to the fullest extent of the law.
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Extended warranty = return fraud.

I had a buddy who bought a video card for his pc from Best Buy.

After 30 days the card died, Best Buy basically told him he was SOL.

Solution?

I told him to purchase another video card (identical) from Best Buy and we swapped the bad one for the new one in his pc and returned the bad card to Best Buy the same day using the new receipt.

They call it fraud. I call it buyer protection.
 
betplom
Extended warranty = return fraud.

I had a buddy who bought a video card for his pc from Best Buy.

After 30 days the card died, Best Buy basically told him he was SOL.

Solution?

I told him to purchase another video card (identical) from Best Buy and we swapped the bad one for the new one in his pc and returned the bad card to Best Buy the same day using the new receipt.

They call it fraud. I call it buyer protection.
Click to expand...

I did that in college a bunch of times. You can get away with upgrades too. Most CS reps don't know the difference between a couple of circuitboards.
 
Saulty
I have never committed fraud. What goes around comes around and bites you in the ass.
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Right, you've never misrepresented yourself.

Not even on a forum.

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