Return fraud is the act of defrauding a retail store by means of the return process. There are various ways in which this crime is committed. For example, the offender may return stolen merchandise to secure cash, steal receipts or receipt tape to enable a falsified return, or use somebody else's receipt to try to return an item picked up from a store shelf. Return fraud and theft have been reported to lead to price increases for shoppers. Some stores create strict return policies such as "no receipt, no return" or impose return time restrictions.

Types

Some examples of return fraud include: Return policies have historically served as the primary way for retailers to combat return fraud and abuse; the challenge is keeping policies from being overly restrictive or inconsistently interpreted, both of which may discourage loyal customers and affect purchases. Automated solutions have also been developed to help combat return fraud and abuse, including software programs that detect such behavior and help retailers determine whether a return is valid.

Wardrobing

Wardrobing, purchasing merchandise for short-term use with the intent to return the item, has been described by industry advocates as a form of return fraud. Wardrobing is a form of return fraud where an item is purchased, used, and then returned to the store for a refund. Wardrobing is most often done with expensive clothing, hence the name. Customers purchase the expensive clothe, wear it with the price tags and if necessary the ink tag, but then return the used item demanding a product return refund of some sort. This type of retail fraud is a social phenomenon, for example when summer vacations necessitate stylish outfits. However, this type of return fraud is also common with tools, electronics, and even computers. To prevent this practice, some stores make certain items, such as wedding dresses or Christmas decorations, unreturnable. Some observers classify wardrobing as a form of shoplifting.