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Types of eCommerce Return Frauds and How to Prevent Them

Updated: Dec 8, 2022

Introduction: What is Return Fraud?

Online stores have to deal with tough competition, angry customers, and fraudulent requests. While these are all problems that business owners need to tackle, at least they can take solace in the fact that there are a lot of ways to prevent return fraud.

88% of shoppers want to be able to return products. Moreover, 95% of them say this is the main thing that would convince them to buy again from the same retailer.

The main reason why you want to accept returns is that it helps establish a connection with your customers. It also makes them more loyal to your brand and boosts your reputation online. This article will review some of the most common return frauds and let you know how to prevent them.

Common Types of Return Fraud

Return fraud can take a variety of forms and falls on a spectrum. At one end you might have someone who, for example, has accidentally bought the wrong item. On the other, you have people running a large-scale scam by intentionally buying products en masse in order to manufacture refunds from them. Here's an example of what that might look like: