{"id":84839,"date":"2025-09-15T13:11:51","date_gmt":"2025-09-15T17:11:51","guid":{"rendered":"https:\/\/network.napco.com\/total-retail\/?post_type=article&p=84839"},"modified":"2025-09-15T13:11:51","modified_gmt":"2025-09-15T17:11:51","slug":"preventing-return-fraud-can-still-be-customer-centric","status":"publish","type":"article","link":"https:\/\/www.mytotalretail.com\/article\/preventing-return-fraud-can-still-be-customer-centric\/","title":{"rendered":"Preventing Return Fraud Can Still Be Customer Centric"},"content":{"rendered":"

Fraud in retail is on the rise; retailers reported a whopping 93 percent increase in the average number of shoplifting incidents<\/a> per year in 2023 vs. 2019. And return fraud — i.e., abusing returns for monetary gain — plays a big role in this.<\/p>\n

In 2024, more than 16 percent of retail sales were estimated to be returned<\/a>. Not only are consumers returning items more often, but their experience making returns can shape their entire perception of a retailer. In fact, 67 percent of consumers say a negative return experience would discourage them from shopping with a retailer again.<\/p>\n

However, no matter how great the returns process is, it can sometimes still be abused, as 93 percent of retailers say return fraud and other exploitive behavior is a significant issue for their business.<\/p>\n

It’s a tough balancing act for retailers to both create the modern, seamless returns process that customers expect while also preventing fraud and abuse.<\/p>\n

In striking that balance, retailers shouldn’t assume that every customer is exploiting the returns process. Doing so is detrimental to retailers’ long-term success and negatively impacts customer relations. What if retailers could assume the best in customers and employ a system that protects customer relationships while reducing fraud, whether intentional or unintentional? Enter artificial intelligence (AI).<\/p>\n

The Case for AI<\/strong><\/h2>\n

AI technology can ensure your returns process is effective while also still helping stores serve customer needs, only enforcing the return policy when necessary. It can do that a few ways:<\/p>\n