Christmas Returns and How Retailers are Combatting Return Scams
Return fraud is up at retailers, especially now after the Christmas holidays
Much of that stems from returning used or reconditioned products, without a receipt, or a receipt.
Overall, one in six returns are fraudulent the National Retail Federation found.
That is actually lower than in the past but there are reasons why the rate may be dropping.
Several retailers now require identification, and maintain a database to track returns by individuals, many retailers have changed policies requiring a receipt that can be traced back to the purchase using the merchants point of sale software.
Best Buy shortened its return days, and special orders are not refundable. Sears also shortened its return days for appliances.
Macy's implemented a restocking fee of 15%
The largest area of fraud however is the most difficult to detect. Collusion between employees and fraudsters can be the most difficult because employees have the ability to manipulate the internal control systems that are in place and designed to detect fraud.
Small retailers are especially vulnerable, as they lack the ability to implement sophisticated internal controls.