According to the study, 11% of retailers’ annual sales will be returned this year, and 8% of those returns are likely to be fraudulent. And while the NRF surveyed loss prevention professionals at department stores, big-box stores, and other retailers, it seems likely that returns fraud would be at least as high if not higher for online sellers.
Other results show that 38% reported in an increase in online purchases being returned to a bricks-and-mortar location, and 29% cited an increase of those returns being fraudulent.
During the holiday season, retailers expect 11% of sales to be returned, on average, down from 13% last year, and that 10% of the returns will be fraudulent, down from 11% last year.
The NRF noted that organized retail crime losses (ORC) is a growing problem, with 92% of companies surveyed reporting they had been a victim of ORC in the past year, with 71% reporting that ORC incidents were increasing. Losses averaged USD 777,877 per USD 1 billion in sales, up 7% from last year’s previous record of USD 726,351. Retailers said online selling contributed to the problem, with criminals targeting items that could be easily stolen and quickly resold.
