How to reduce return fraud for your brick and mortar retail store

As a retailer, you know that returns are a necessary part of doing business. But what you may not know is that return fraud is a huge problem for retailers, costing them billions of dollars each year.

There are a few different ways that criminals commit return fraud, but one of the most common is called “wardrobing.” This is when someone buys an item, uses it for a special occasion, and then returns it for a full refund.

To combat return fraud, many retailers have implemented strict return policies, like only accepting returns within a certain time frame or requiring a receipt. But these policies can be frustrating for legitimate customers, and they may not be enough to deter criminals.

Here are a few other tips to help reduce return fraud at your store:

1. Use security tags.

Attach these to items that are frequently returned, like clothing or electronics. If someone tries to remove the tag, an alarm will sound and they will be unable to return the item.

2. Check IDs.

When someone tries to return an item, ask to see their ID. This will deter criminals who are using fake IDs to commit fraud.

3. Keep track of returns.

Use a computer system to track all returns made at your store. This will help you spot patterns of fraud and catch criminals in the act.

4. Train your employees.

Make sure your employees are aware of the signs of return fraud and know how to handle suspicious returns.

5 . Use different processing events for different types of returns.

For example, use a different code for items that are being returned because they’re defective versus items that are being returned because the customer changed their mind. This will make it easier to track return fraud.

Return fraud is a serious problem, but by taking some simple precautions, you can help reduce it at your store.