![]() ![]() Many return scammers will set up multiple email accounts under free domain services to keep merchants from digging up their factual information. Reverse email lookups can tell you how long the customer has had the email address used and sometimes even how many email addresses are associated with the name they provide. They can enable access to a broad range of applications, even for those with limited tech know-how. Many of these tools have become very nuanced. ![]() Does Conventional Fraud Detection Software Help Prevent Return Fraud?įraud detection technologies and tactics get better every year thanks to ongoing innovations in fraud-response research. So, what can you do to insulate your business from these startling return statistics? Does technology offer any relief? Thankfully, the answer is yes. Approximately $62.1 billion of these returns turned out to be fraudulent. By extension, this means the rate of return fraud will also climb ahead during the holidays.Īppriss Retail reports that retailers accepted around $603 billion in merchandise returns - three-quarters of the entire annual total - during the 2022 holiday season. Even worse, a buyer may file a chargeback to get their refund from the bank, rather than through the proper channels.Īnother thing to consider is that a large number of returns tend to occur over the holiday season when retailers are likely to be understaffed and overwhelmed. Angering customers can lead to reputational damage. You have no definitive way of verifying their claim, though.Įven if you suspect fraud, you don’t want to risk alienating customers by making unprovable accusations. Customers can use a lot of different excuses to claim a return. For instance, there’s the fact that a claim can often be your word against the cardholder's. There are several reasons why many merchants turn a blind eye to suspected return fraud. However, the return request is invalid, as the customer does not have a legitimate right to a refund for one reason or another. Return fraud happens when consumers bring an item (or items) back to you to request a refund in the form of store credit or cash. The merchandise may be ineligible for a refund because it was purchased from another retailer, because the item is used, or was marked as otherwise ineligible for a refund before purchase. Return fraud refers to the act of returning merchandise to a retailer for a refund in violation of the merchant’s stated return policy. ![]()
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