Return fraud threatens US retail
Return fraud continues to pose a serious threat to the retail industry. Retailers estimated that an average 11 percent of their annual sales will be returned this year, and that 8 percent of those returns are likely to be fraudulent. An estimated 12 percent of returns will not include a receipt, and 21 percent of those are expected to be fraudulent. In addition, 38 percent reported in an increase in online purchases returned to a bricks-and-mortar location, and 29 percent cited an increase of those returns being fraudulent.
During the holiday season, retailers expect 11 percent of sales to be returned, on average, down from 13 percent last year, and that 10 percent of the returns will be fraudulent, down from 11 percent last year. The survey of 66 loss prevention professionals representing department store, big-box, discount, drug, grocery, specialty retail and other industry sectors was conducted.
The survey was conducted by the National Retail Federation (NRF) is the world’s largest retail trade association. Based in Washington, D.C., NRF represents discount and department stores, home goods and specialty stores, Main Street merchants, grocers, wholesalers, chain restaurants and internet retailers from the United States and more than 45 countries. Retail is the nation’s largest private-sector employer, supporting one in four US jobs, all together about 42 million working Americans. Contributing $2.6 trillion to annual GDP, retail is a daily barometer for the nation’s economy.
