Beauty Store Business magazine - January, 2020

Retailers Lose Billions in Holiday Return Fraud

Retailers Lose Billions in Holiday Return Fraud

Retailers will lose about $3.39 billion to return fraud this holiday season, as part of a total $8.76 billion expected overall in return fraud for 2013, according to the National Retail Federation’s 2013 Return Fraud Survey.

The survey, which was completed by loss-prevention executives at 62 retail companies, notes that 5.8% of holiday returns are fraudulent, up from 4.6% last year.

“Recent efforts to combat fraudulent activity are slowly starting to work, but criminals are becoming more savvy and technologically advanced in their methods, making it even more difficult for retailers and law enforcement to keep up with the growing problem,” said NRF vice president of loss prevention Rich Mellor.

[Image courtesy of NRF]