Preventing return fraud in your retail store

From Small Business Trends:

Retail returns are a trouble spot for retailers at any time of year, but at the holidays, the problem is especially significant. This year, the NRF expects holiday return fraud will cost U.S. retailers $2.2 billion, according to NRF’s Return Fraud Survey.

Retail return fraud is on the rise due to many factors, including the increasing popularity of gift cards, new payment methods and technological innovations that make it easier to falsify or duplicate receipts. Some of the most common types of fraud are:

• Wardrobing: The tactic, often used with high-end clothing or electronics, means a customer buys something, uses it once and then returns it (like the teen who wears a prom dress and returns it the next day, or the sports fan who returns the big-screen TV he bought from you the day after the Super Bowl).
• Employee Fraud: Dishonest employees may be in cahoots with friends to falsify returns.
• Gift Card Returns: Some fraudsters buy products with gift cards, then return the products and ask for cash.
• Gift Receipt Returns: Some customers will ask for gift receipts for “final sale” products so they can return them for store credit.

For more of this article, visit smallbiztrends.com.