Home / Knowledge / News / Apparel/Garments / Holiday return fraud to cost US retailers $3.4bn - NRF
Holiday return fraud to cost US retailers $3.4bn - NRF
09
Dec '13
As one of the most serious, but often most misunderstood, retail loss prevention issues, return fraud costs retailers billions of dollars every year. 

According to NRF’s 2013 Return Fraud Survey completed by loss prevention executives at 62 retail companies, the industry will lose an estimated $8.76 billion to return fraud this year, and $3.39 billion during the holiday season alone. Overall, 5.8 percent of holiday returns are fraudulent, up slightly from 4.6 percent last year.

“While coverage of this issue paints return fraud as one of the ‘less severe’ retail crimes, the fact of the matter is that returning used or stolen items, or even using false tender to purchase items is fraud, period,” said NRF Vice President of Loss Prevention Rich Mellor.

“Recent efforts to combat fraudulent activity are slowly starting to work, but criminals are becoming more savvy and technologically advanced in their methods, making it even more difficult for retailers and law enforcement to keep up with the growing problem.”

According to the survey, nearly all (94.8%) retailers polled say they have experienced the return of stolen merchandise in the last year, and 69.0 percent report that they have experienced the return of merchandise purchased on fraudulent or stolen tender. Additionally, 29.3 percent have found criminals using counterfeit receipts to return merchandise.

Employee return fraud or collusion with external sources is also a big problem for retailers: nine in 10 (93.1%) report they’ve dealt with this issue in the past year. For the first time, NRF asked retailers about their experiences with return fraud and a connection to organized retail crime groups: 60.3 percent have experienced this in the past year.

One of the biggest issues for retailers is the practice of ‘wardrobing,’ or the return of used, non-defective merchandise like special occasion apparel and certain electronics. Many companies have employed specific tactics to help curb this unethical practice, and are beginning to see the fruits of their labor: 62.1 percent report having been victims of wardrobing, down from 64.9 percent last year.

The survey found 15.5 percent say they have dealt with e-receipt return fraud. And, as online sales continue to grow, 82.5 percent say they allow customers to return merchandise purchased online in their stores.


Must ReadView All

Textiles | On 23rd Jun 2017

Textile ministry organises training workshop on GST

The ministry of textiles had organised training workshop on GST which ...

Apparel/Garments | On 23rd Jun 2017

Uware Brands into licensing agreement with Polaroid

Uware Brands has entered into a licensing agreement with Polaroid for ...

Textiles | On 23rd Jun 2017

Ralph Lauren ex-president Tiger of Sweden's new CEO

Hans-Christian Meyer, former president of Ralph Lauren Corporation,...

Interviews View All

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
June 2017

June 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search