Loss Prevention Strategies - Return Fraud - Retail
Languages: English
Media Editing: The video module(s) in this subject are editable under our Content Studio offering unless otherwise indicated. For more information about Content Studio, contact your CSM.
Description: Return fraud can cause serious problems since it often results in the customer being given a refund or store credit while your store suffers the consequences. There are many different types of return fraud, so it's essential that all employees are aware of and prepared to identify it as fraud. In this subject, learners will be taught the most common types of return fraud, how to identify them, and how to prevent them if necessary. Note: This training is meant to complement mandatory store training, not act as a replacement for it.
Languages: English
Media Editing: The video module(s) in this subject are editable under our Content Studio offering unless otherwise indicated. For more information about Content Studio, contact your CSM.
Description: Return fraud can cause serious problems since it often results in the customer being given a refund or store credit while your store suffers the consequences. There are many different types of return fraud, so it's essential that all employees are aware of and prepared to identify it as fraud. In this subject, learners will be taught the most common types of return fraud, how to identify them, and how to prevent them if necessary. Note: This training is meant to complement mandatory store training, not act as a replacement for it.
Languages: English
Media Editing: The video module(s) in this subject are editable under our Content Studio offering unless otherwise indicated. For more information about Content Studio, contact your CSM.
Description: Return fraud can cause serious problems since it often results in the customer being given a refund or store credit while your store suffers the consequences. There are many different types of return fraud, so it's essential that all employees are aware of and prepared to identify it as fraud. In this subject, learners will be taught the most common types of return fraud, how to identify them, and how to prevent them if necessary. Note: This training is meant to complement mandatory store training, not act as a replacement for it.
Topics
Common Types of Return Fraud
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There are numerous types of return fraud that some customers use to try to take advantage of your store’s return policy. They use these techniques to earn a personal profit while your store suffers the loss, so it’s important that you can identify when fraud is happening to you. This topic will explore the various types of return fraud that are commonly used in a retail environment, including shoplisting, bricking, and wardrobing.
This topic is intended to be taken before How to Help Prevent Return Fraud.
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Questions (level 1, 2, 3)
Video module
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This topic is currently available in English.
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Shoplisting is when a customer finds someone else’s receipt, gathers the items on it in the store, then tries returning the items.
Shoplifting with a receipt is when a customer makes a valid purchase and keeps the receipt. They then go back into the store, find the same items on the receipt, and try returning them, often saying they just changed their mind.
Renting or wardrobing is common in clothing stores and occurs when a customer purchases an item and returns it after using it, like wearing a dress for a special occasion.
Tender liquidation is when a customer purchases an item on a stolen debit or credit card then tries to return the item for a store gift card. Then, they sell the gift card online for profit.
Price arbitrage is when a customer buys an item that they already own, then tries to return the used item as the new one to replace their old item for free.
E-Receipt fraud is when a customer uses technology to make a fake receipt for your store, then uses that receipt to return the products on it for a profit.
Bricking is when a customer purchases an item, removes valuable parts from it, then returns it as an unusable product. It’s often seen in electronics like cell phones or laptops.
Brick-in-box fraud is when a customer purchases an item that is in a box, removes the item from inside the box and replaces it with something else of a similar size and weight, then reseals the box and tries returning it for a refund.
Returning stolen items is when a customer steals items from inside the store, then goes back to the store later to return the items for a refund.
Cross-retailer returns happen when a customer purchases an item listed at a lower price at one store, then tries returning the item to a store where it is priced higher to make a profit from the return.
Price switching is when a customer legally purchases an item, then tries switching the price tag on the item to make it appear more expensive. Then, they return the item for a higher refunded price.
How to Help Prevent Return Fraud
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Return fraud can be difficult to identify, which is why it can be so common in retail environments. In this topic, you’ll learn how you can more easily tell when a customer is attempting to fraudulently return an item for their own profit so that you can help prevent it from occurring. Techniques include asking to see the original payment card, checking the receipt for inaccuracies, and checking the item’s tags.
This topic is intended to be taken after Common Types of Return Fraud.
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Questions (level 1, 2, 3)
Video module
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This topic is currently available in English.
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To help prevent shoplisting and tender liquidation, ask the customer to show you the payment card that was used for the original purchase so you can verify it’s the same person trying to return the item, not a stolen card.
To help prevent tender liquidation, memorize and employ your store policy for customers who regularly return items. These types of customers may be trying to benefit from your store’s return policy.
To help prevent wardrobing, carefully examine items when they’re being returned. This includes checking that the item’s tags are correct and intact, and that the item is in generally good condition.
To help prevent price arbitrage, shoplifting with a receipt, and price switching, always check that the items being returned match the items that are on the original receipt.
To help prevent e-receipt fraud and returning stolen items, check to make sure that the original receipt is actually from your particular store. This includes checking for watermarks, product codes, and any signs of a fraudulent receipt.
When you identify return fraud, be firm by telling the customer exactly why you cannot accept the return. Acknowledge their request but stand your ground if they try to get you to change your mind.
Be particularly mindful of possible return fraud during and after the holiday season. Many customers will likely be returning items and fraudsters may try to take advantage of return fatigue.
