The post-Christmas return line at most retail stores can stretch around the building as customers aim to return unwanted gifts. But according to the National Retail Federation, not everyone in line is on the up and up.
According to the NRF’s 2014 Return Fraud Survey, retailers estimate $3.6 billion will be lost to return fraud this holiday season alone, up from last year’s $3.4 billion.
The survey compiled data from 60 retail companies representing grocery, department, discount, specialty and small retailers nationwide. Overall, the industry estimates $10.9 billion in return fraud in 2014, according to a news release.
“Return fraud has become an unfortunate trend in retail thanks to thieves taking advantage of retailers’ return policies to benefit from the cash or store credit they don’t deserve,” said NRF Vice President of Loss Prevention Bob Moraca, in the release. “Additionally, many of these return fraud instances are a direct result of larger, more experienced crime rings.”
The industry reported a 13 percent jump in returned merchandise purchased with stolen credit cards in a year plagued by large data breeches by organized groups of hackers. According to the survey, 93 percent of retailers polled say they have experienced the return of stolen merchandise in the last year and more than three-quarters of those polled have experienced fraud through returns by organized retail crime groups. The ease of electronic receipts also helps increase fraud, up 3 percent to 18.2 percent this year.
To curb the practice, most retailers now require proof of identification, even when the customer has a receipt. However, the NRF estimates only 70 percent of retailers ask for ID, leaving the door open for fraud to sneak in.[[In-content Ad]]
Moseley’s Discount Office Products was purchased; Side Chick opened in Branson; and the Springfield franchise store of NoBaked Cookie Dough changed ownership.
