The growth of e-commerce has led to an inevitable increase in returns – but also in fraudulent returns. These scams can make the already-expensive process of returns into a huge revenue drain, while eroding brand integrity. In order to protect against these fraudulent activities, brands need to re-evaluate their policies and implement safeguards.
“The growth of e-commerce as has been a key contributor to returns related fraud during 2020 and into this year,” said David Malka, chief sales officer at returns solution goTRG. “Some prevalent fraud practices related to online returns include bait and switch, gift card fraud, and chargebacks. Additionally, retailers are recognizing that sometimes it’s more costly to process a return for a lower value item, and have begun to let consumers keep or donate these un-economical products.”