Return Fraud

Return fraud is the act of defrauding a retail store through its own return process, returning goods that are not actually eligible for a refund in exchange for money or other goods. Perpetrators use a range of methods, including returning stolen merchandise for cash, stealing a store's own receipts or receipt tape to manufacture a false return, or using someone else's receipt to return an item taken directly from a store shelf. The practice has documented consequences beyond the individual transaction: research has found that return fraud and theft contribute to price increases for shoppers generally, and in response many retailers have adopted stricter return policies, such as refusing returns without a receipt or imposing a limited return window.