1/29/2016
Return Fraud Estimated at $2.2 Billion
Ann-Marie Vazzano
With holiday sales come holiday returns. According to NRF’s latest Return Fraud Survey, retailers estimate that 3.5% of their holiday returns this year will be fraudulent, costing retailers $2.2 billion (an increase over last year’s $1.9 billion). Total returns are expected to reach $260.5 billion (8% of retail sales). Of those returns, $9.1 billion are estimated to be fraudulent. Here’s a look at the top return fraud activity over the last year:
• 91.9% of retailers have experienced the return of stolen merchandise
• 72.6% say they’ve received returned merchandise that has been used or worn
• 75.8% have experienced the return of merchandise purchased on fraudulent tender
• 71% have experienced return fraud made by known organized retail crime groups
• 77.4% have experienced employee return fraud or collusion with external forces
• 33.9% have experienced return fraud with the use of e-receipts (up from only 18.2% in 2014)
GP