According to recent research Return Fraud has grown 25% over the last 12 months, making it one of the fastest growing threats in North America…
The US Retail Fraud Survey 2015, sponsored by cash handling experts Volumatic, has shown that the growth of Return Fraud could account for as much as a whopping $14.5Billion of retail losses annually.
The Survey, published by international loss prevention experts Retail Knowledge, is based upon research undertaken with 91 of the country’s leading retailers, representing some $844 Billion in sales annually; approximately 18% of the North American market.
Paul Bessant, Founder of Retail Knowledge said, “It seems that Return Fraud is on the increase. This can be as simple as the “classic example” of a woman buying a dress and then returning it after wearing it to a party for refund, through to more sophisticated scams operated by organised gangs to steal millions of dollars worth of goods across the country from national retail chains and then “return” them for cash refunds.
Bessant continued “This figure should be treated with caution, because our sample this year included a higher proportion of retailers who could, perhaps, be seen as more at risk of Return Fraud than in previous years; making the increase look higher than it actually is. However, it is very clear – both from our research and the anecdotal evidence provided by retailers attending our conferences in the USA, and indeed elsewhere – that Return Fraud is a significant problem and one that retailers will perhaps be giving greater attention to in the future.
James Harris, Commercial Director at Volumatic commented, “We are very pleased to continue our support for the US Retail Fraud Survey. The Survey really provides a detailed picture of the evolving fraud challenge for retailers, in all its dimensions. In light of recent events, there has never been a more important time for collaboration. Knowing the trends and keeping tuned-in to the current threats merchants are dealing with helps the entire industry stay ahead of the increasing hazards of fraud.”