News by Topic
- Search Marketing
- Email Marketing
- Loyalty Marketing
- Mobile Marketing
- Social Marketing
- Viral Marketing
- Trends & Ideas
- Internet Marketing 101
Return fraud may cost retailers
The 2013 holiday shopping season may have seen retailers earn 10% more than in 2012, but return fraud may still cost them. According to a survey by the National Retailer Federation return fraud could cost retailers $3 billion; nearly $9 billion in return fraud can be expected for the year as a whole.
Nearly all businesses say they've experienced return fraud based on in-store buys - or theft - while just over 15% say they've experienced e-receipt return fraud as well.
According to the NRF survey:
• 9.4% of retailers have experienced the return of stolen items over the past year
• 69% of retailers say they've experienced item returns purchased on stolen/fraudulent tender
• 29% say people use counterfeit receipts for returns
• 93% say they've experience employee return fraud
• 49% say they've seen an increase in gift card/store merchandise credit fraud
"While coverage of this issue paints return fraud as one of the 'less severe' retail crimes, the fact of the matter is that returning used or stolen items, or even using false tender to purchase items is fraud, period," said NRF Vice President of Loss Prevention Rich Mellor. "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."
To deal with the increase in return fraud, retailers are requiring receipts (73%) to process returns while 12% require those returning items to show their identification.
- Brands: How to ensure rogue apps aren't damaging to you
- Top tips to drive purchases
- Brands: How to protect yourself in the app space
- 25% of smartphone owners have used mobile wallet technology at least once
- Forge relationships with consumers with gamification marketing techniques
- 50% of teens bored of Facebook as the social network loses its 'cool' factor
- Studies ID social trends for the holiday season
- Experts: Use the Hunger Games strategy to avoid spam folders
Featured White Papers
- 2014 Top Insights for Marketing Executives
Winning consumers over today requires building new capabilities that make brands more agile and provides deeper, more intimate knowledge of...
- 6 Common Marketing Problems and How to Beat Them
Feeling tired, frustrated, and overwhelmed with work chaos? Get the Winning at the Game of Marketing eBook and get control....
- Social & The DMP: Understanding Data-Driven Social Media Marketing
Learn how top marketers improved their Social Media Marketing....