Return Receipt Fraud

Return Receipt Fraud Is Exploding

Return receipt fraud is now one of the leading causes of fraud loss across the entire retail industry. In the 2009 holiday season alone, the National Retail Federation estimated $2.7 billion lost to return scams, with $9.6 billion for the full year. By 2018, Appriss and Deloitte put annual U.S. losses from merchandise return fraud at $18.4 billion

As of 2024:

15.14% of retail return dollars were lost to fraud and abuse, totaling $103 billion
Over 15% of all retail returns were classified as fraudulent, including used-item returns and returns on stolen-tender purchases
Organized return-fraud rings increasingly exploit e-commerce returns channels via Telegram and other platforms, costing major retailers billions

According to a recent NRF survey:

5%+ of all product returns are fraudulent.
75%+ of retailers have seen returns on items purchased with counterfeit or fraudulent payment.
40%+ have encountered counterfeit or altered receipts used for returns.

Layered Fraud Prevention Is Essential

With return fraud continuing to challenge loss-prevention teams, retail executives must adopt a layered approach that both DETECTS and DETERS fraudulent returns at the point of presentation.

DETECT counterfeit receipts, currency, and payment instruments at the register.
DETER would-be fraudsters by capturing verifiable identity data and creating audit‑ready records.

Detection

Our solutions can help frontline staff verify the authenticity of receipts, payment methods, and identification documents with ease. These tools reveal embedded security features or data inconsistencies that often indicate forgery or tampering.

Whether you're looking to spot counterfeit receipts, identify fake currency, or catch fraudulent payment methods, we provide easy-to-use tools that verify authenticity without slowing down transactions. These solutions are low-cost, require minimal training, and integrate seamlessly into existing customer service or return desk operations.

Deterrence

Capturing and verifying a customer’s identification at the point of return adds a powerful deterrent. When people know their ID is being authenticated and documented, they’re far less likely to attempt fraudulent activity.

FraudFighter ID offers flexible ID verification systems that help you confirm identity while creating a secure digital record of the transaction. These records can serve as evidence in investigations, support your loss prevention policies, and reinforce regulatory compliance—without complicating your return process.

Why FraudFighter?

With thousands of retail locations using our technology today, we help organizations of all sizes:

Prevent losses at the point of return
Support investigations with verifiable records
Deter organized fraud attempts with visible safeguards
Simplify compliance with fraud prevention best practices

Whether you're a national chain or a single-store operator, FraudFighter™ can tailor a solution to your return environment—keeping your team prepared, protected, and proactive.