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Retail Fraud – Don’t Make the Cure Worse than the Disease

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Retailers are in the business of selling, but preventing return fraud is also important to a healthy bottom line. The National Retail Federa­tion estimated that holiday season return fraud cost retailers $2.2 billion in 2015. Retailers can expect that number to rise in 2016. To maximize profitability, retailers use various methods to prevent fraudulent returns, but some of these methods can lead to other problems. Those representing retailers need to know how return fraud happens, what retailers are doing to pre­vent it, and how retailers’ efforts should be tweaked to avoid legal problems.

Reprinted with permission from Attorney at Law Magazine.

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