Organized retail crime (ORC) continues to be a major challenge, with losses averaging over $700,000 per $1 billion in sales in 2020, a trend exacerbated by the pandemic and the shift to digital platforms.
The 2021 holiday season saw nearly 11% of e-commerce returns marked as fraudulent. The National Retail Federation (NRF) notes a 39% increase in fraud due to multichannel sales such as BOPIS (buy online, pick up in-store). Techniques like smishing, phishing, and pharming are on the rise, with some attacks increasing by 700%.
Retailers face chargeback fraud where customers dispute legitimate charges, with average daily claims rising by 19%. Combatting this issue requires investment in advanced identification and POS systems, implementing stricter return policies without harming consumer loyalty, and training employees for better in-store vigilance. Record-keeping is essential for disputing chargebacks. The digital age demands a multipronged approach, combining technology with comprehensive strategy to mitigate these risks.
