Tweet
yu fawt..now demma track yu [img]/forums/images/graemlins/704555_dwl.gif[/img] [img]/forums/images/graemlins/704555_dwl.gif[/img]
Serial returners beware: Stores tracking to monitor fraud
WASHINGTON — Are you a serial returner? By that, I mean, do you routinely return items, especially holiday gifts? If so, be forewarned. Some retailers have resorted to using a computer database to track customer returns and catch fraudulent or excessive returns.
Return fraud, which by the way includes bringing back used merchandise for a full refund, will cost retailers $3.5 billion this holiday season, according to a recent report by the National Retail Federation. For the year, the retail industry says it stands to lose $9.6 billion from fraudulent returns.
The number of returns is expected to increase after Christmas, from an annual average of 7.3 percent to a post-holiday rate of 8.8 percent, according to the federation.
In its first survey that looked specifically at return fraud, the federation found that the most popular form of such fraud is the return of stolen merchandise. No surprise there.
ANOTHER PROBLEM
However, retailers also complained about the use of bogus merchandise receipts. With a high-quality scanner and printer, people can copy and alter receipts, making it easy to return stolen goods. They use the fake receipt (which they may have found in the trash near the store) to return an item so they can get cash for the shoplifted merchandise.
But more than half the companies polled reported a more old-fashioned way of stealing. In this scam, a customer returns merchandise that has been used but that they never intended to keep. These returns involve everything from computers to digital video cameras to clothing. The industry calls this practice "wardrobing." People just want to use the items for special occasions - a graduation, Christmas party or wedding.
Most frequently, wardrobing involves female customers returning special occasion dresses. In this scheme, a woman will wear the dress, tuck away the sales tag and then return the dress to the store for a full refund. That's fraud.
Return fraud has become so prevalent that 25 percent of retailers in the federation survey said they will be getting tougher with their return policies this holiday season. Seventy percent of retailers in the survey said they've changed their policies in recent years to curtail this specific type of stealing. One of the most common policy changes has resulted in "No receipt. No return."
RETURN TIPS
Some retailers also are using the service of Irvine, Calif.-based The Return Exchange to monitor returns and catch thieves. The company provides fraud and abuse detection products to track excessive or illegal merchandise returns.
Stores that use The Return Exchange will ask customers for a driver's license or some other government-issued identification when he or she returns an item. The ID is used to track the customer's returns. A return may be refused if the database detects possible fraud or the consumer has exceeded the store's limit on returns.
So how can you prevent from having a return rejected? Here's how:
Before you buy, check the store's written return policy. And don't just rely on the cashier or a clerk.
Don't assume that a store's Internet retail operation has the same return policy as its brick-and-mortar operation. Before you buy, remember to ask who pays the shipping costs for an exchange or return. Some merchants will pick up the delivery charges for exchanges, but not for returns.
Ask for a gift receipt. Only about 49 percent of people giving gifts during the holidays include a gift receipt, according to the federation.
Keep all your receipts. Many retailers still allow you to exchange merchandise without a receipt. However, without a receipt, the retailer may only provide a store credit for the lowest price the item has sold for in recent weeks.
Keep all the original packaging, including all tags, rebate material and instruction manual. Some retailers won't accept returns unless the item is in its original package. In addition, many stores now impose a restocking fee if an item has been opened. The fee can cost anywhere from 5 percent to 25 percent of the item's price tag, according to Newgistics, which provides retailers with return tracking technology.
Serial returners beware: Stores tracking to monitor fraud
WASHINGTON — Are you a serial returner? By that, I mean, do you routinely return items, especially holiday gifts? If so, be forewarned. Some retailers have resorted to using a computer database to track customer returns and catch fraudulent or excessive returns.
Return fraud, which by the way includes bringing back used merchandise for a full refund, will cost retailers $3.5 billion this holiday season, according to a recent report by the National Retail Federation. For the year, the retail industry says it stands to lose $9.6 billion from fraudulent returns.
The number of returns is expected to increase after Christmas, from an annual average of 7.3 percent to a post-holiday rate of 8.8 percent, according to the federation.
In its first survey that looked specifically at return fraud, the federation found that the most popular form of such fraud is the return of stolen merchandise. No surprise there.
ANOTHER PROBLEM
However, retailers also complained about the use of bogus merchandise receipts. With a high-quality scanner and printer, people can copy and alter receipts, making it easy to return stolen goods. They use the fake receipt (which they may have found in the trash near the store) to return an item so they can get cash for the shoplifted merchandise.
But more than half the companies polled reported a more old-fashioned way of stealing. In this scam, a customer returns merchandise that has been used but that they never intended to keep. These returns involve everything from computers to digital video cameras to clothing. The industry calls this practice "wardrobing." People just want to use the items for special occasions - a graduation, Christmas party or wedding.
Most frequently, wardrobing involves female customers returning special occasion dresses. In this scheme, a woman will wear the dress, tuck away the sales tag and then return the dress to the store for a full refund. That's fraud.
Return fraud has become so prevalent that 25 percent of retailers in the federation survey said they will be getting tougher with their return policies this holiday season. Seventy percent of retailers in the survey said they've changed their policies in recent years to curtail this specific type of stealing. One of the most common policy changes has resulted in "No receipt. No return."
RETURN TIPS
Some retailers also are using the service of Irvine, Calif.-based The Return Exchange to monitor returns and catch thieves. The company provides fraud and abuse detection products to track excessive or illegal merchandise returns.
Stores that use The Return Exchange will ask customers for a driver's license or some other government-issued identification when he or she returns an item. The ID is used to track the customer's returns. A return may be refused if the database detects possible fraud or the consumer has exceeded the store's limit on returns.
So how can you prevent from having a return rejected? Here's how:
Before you buy, check the store's written return policy. And don't just rely on the cashier or a clerk.
Don't assume that a store's Internet retail operation has the same return policy as its brick-and-mortar operation. Before you buy, remember to ask who pays the shipping costs for an exchange or return. Some merchants will pick up the delivery charges for exchanges, but not for returns.
Ask for a gift receipt. Only about 49 percent of people giving gifts during the holidays include a gift receipt, according to the federation.
Keep all your receipts. Many retailers still allow you to exchange merchandise without a receipt. However, without a receipt, the retailer may only provide a store credit for the lowest price the item has sold for in recent weeks.
Keep all the original packaging, including all tags, rebate material and instruction manual. Some retailers won't accept returns unless the item is in its original package. In addition, many stores now impose a restocking fee if an item has been opened. The fee can cost anywhere from 5 percent to 25 percent of the item's price tag, according to Newgistics, which provides retailers with return tracking technology.
Comment