Every holiday season, shoppers hit the stores in droves, looking for that perfect gift. Though, sometimes, no matter how much thought went into the search, gift recipients need to return that gift. Unfortunately, there are also crafty criminals who have found ways to return merchandise that was stolen or never paid for in the first place.
Fraud rates have fluctuated so dramatically in recent years it’s become increasingly difficult to find the appropriate balance when it comes to maintaining a fair but strict return policy. Many retailers recommend and encourage shoppers to give gift receipts.
NRF’s latest return fraud survey found retailers lost nearly $4 billion to fraudulent returns last holiday season. Annually, that amount rises to an estimated $14 billion. Though gift receipts do almost guarantee a seamless return process, retailers still estimate nearly four percent of all returns with a receipt are fraudulent; without a receipt – nearly 13 percent! These numbers are in large part why some consumers may be asked to present their drivers license when making returns, with or without a receipt.
Industry expert and senior asset protection advisor at NRF, Joe LaRocca was recently interviewed about what goes into a retailers’ return policy and why many have had to resort to asking their shoppers to present their drivers license when making a return. In the end, return fraud unfortunately even costs innocent consumers.
Check out the interview: