'Return fraud' costing retailers big bucks
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SEATTLE -- Wednesday is historically one of the busiest shopping days of the year, but it's also the start of the holiday season for crooks illegally returning items to stores.
The wide-ranging scam costs businesses nearly $9 billion, and almost half of the money lost to "return fraud" comes during the holidays, according to a survey from the National Retail Federation.
The survey estimates that one in every 21 holiday returns is a rip off.
Oftentimes the scam involves someone wearing clothing or watching a television and then returning the items. Return fraud costs businesses billions each year, and that loss gets passed on to customers in the form of higher prices and stiffer return polices.
In an effort to combat the scam, some retailers are now keeping track of how many items a customer returns. For someone like Bob Perkins, it's not a problem.
"I know that sometimes if you buy using a credit card, sometimes they'll let us go without the receipt. But we got the receipts that we needed," Perkins said.
But bad guys use common tricks such as buying merchandise with fake checks and then returning it for cash or exchange. There's also "wardrobing," which involves wearing a dress and then bringing it back. Counterfeit receipts are also big part of the scam.
Online shopping is also hurting the industry because emailed receipts are easier to fake. Despite the high risk, 90 percent of the stores surveyed allow items purchased online to be returned at a brick-and-mortar store.
The National Retail Federation says most stores are keeping their return policies intact, but more retailers are loosening their policies than tightening them. Competition demands it, despite the rip offs.
Northgate Mall Hallmark worker Gina Henderson said employees are trained to watch out for return scams, but she doesn't think it's a big problem.
"You always gotta be on your toes," she said.
To avoid problems when returning items, customers should follow a few easy tips. First, electronics must be returned sooner than other items -- often within 30 days. You also have a better chance of getting a full refund if the box is unopened.
Many stores track purchases electronically and no longer need a receipt. When you can, you should also keep tags on the items you're returning, especially clothes.
The wide-ranging scam costs businesses nearly $9 billion, and almost half of the money lost to "return fraud" comes during the holidays, according to a survey from the National Retail Federation.
The survey estimates that one in every 21 holiday returns is a rip off.
Oftentimes the scam involves someone wearing clothing or watching a television and then returning the items. Return fraud costs businesses billions each year, and that loss gets passed on to customers in the form of higher prices and stiffer return polices.
In an effort to combat the scam, some retailers are now keeping track of how many items a customer returns. For someone like Bob Perkins, it's not a problem.
"I know that sometimes if you buy using a credit card, sometimes they'll let us go without the receipt. But we got the receipts that we needed," Perkins said.
But bad guys use common tricks such as buying merchandise with fake checks and then returning it for cash or exchange. There's also "wardrobing," which involves wearing a dress and then bringing it back. Counterfeit receipts are also big part of the scam.
Online shopping is also hurting the industry because emailed receipts are easier to fake. Despite the high risk, 90 percent of the stores surveyed allow items purchased online to be returned at a brick-and-mortar store.
The National Retail Federation says most stores are keeping their return policies intact, but more retailers are loosening their policies than tightening them. Competition demands it, despite the rip offs.
Northgate Mall Hallmark worker Gina Henderson said employees are trained to watch out for return scams, but she doesn't think it's a big problem.
"You always gotta be on your toes," she said.
To avoid problems when returning items, customers should follow a few easy tips. First, electronics must be returned sooner than other items -- often within 30 days. You also have a better chance of getting a full refund if the box is unopened.
Many stores track purchases electronically and no longer need a receipt. When you can, you should also keep tags on the items you're returning, especially clothes.
Return fraud.. How sad is that why Pennys wanted to email me my receipt when I shopped there last and I said no.Â
Return fraud doesn't cost the retailers anything, they pass the cost back onto the customers. It's all figured back into the price of the merchandice. No new news here.
The stores and their shareholders dont like being defrauded and scammed? Too bad!
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What did they expect to have happen when they defraud their own countryman and offshore work in their get rich scams. It will get worse and we will continue to sink deeper into the social and economic meat grinder.
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It used to be that you would fight a war, get a job, raise a family, pay taxes, retire in dignity and die without being desperate for your next meal, then the '80s came along with "Trickle down" and it was the end of the richest most powerful country the world had ever seen.
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I wish it cost you retailers 90 billion dollars a year, now that would be funny.
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People can help stop this by supporting hanging people who do these sort of scams. Of course it is not worth the effort to procecute these people when they will just get a slap on the wrist. But if they see thier friends hanging infront of the court house they may think twice.
 @slyderwso Seriously? They don't even go that far in Saudi Arabia.Â
This was big in the grocery business too. Creeps would look for receipts customers threw on the ground or left in the carts, then come in claiming we didn't give them their item, or they'd steal the item and use the receipt to return it. People can help stop this fraud by hanging on to their receipt until they get home.
All those things mentioned above are stuff stores have already been doing. I used to work for Sears in two different locations from 2006-2009 (ugh, never again will I even BUY anything from them) and they keep track of how many returns people have done when I was there.
They never tell you that the cost of that annual loss is always part of the current price of the item. Sure, it's wrong to steal; but let's not pretend we don't cover our losses by punishing legitimate purchasers in the long run.
 @Alikelystorey Actually they do tell you; it's in the article.