Holiday Return Fraud Will Cost $2.2 Billion in 2015
Retail fraud comes in many shapes and sizes and is especially rampant during the holiday season when online and in-store traffic grows significantly. One of the biggest issues throughout the holiday season: return fraud.
According to NRF’s latest Return Fraud Survey, retailers estimate that 3.5 percent of their holiday returns this year will be fraudulent, up slightly from the estimated 3 percent reported last year. Holiday return fraud is expected to cost retailers $2.2 billion, up from approximately $1.9 billion last year.
Retailers surveyed estimate that total annual returns will reach $260.5 billion, or 8 percent of total retail sales, with $9.1 billion of retailers’ annual returns expected to be fraudulent, or 3.5 percent of the industry’s total returns.