Retailers suffer from return fraud

A recent analysis by ReBound Returns shows that retailers are suffering significant financial losses due to return fraud. In a study that includes data from one million returns between July 2025 and May 2026, potentially fraudulent returns worth £29 million were identified. According to the company, these findings highlight a significant weakness in fraud detection within the industry.

The return rate in online retail has reached nearly 20%, which poses an increasing problem given a market volume of nearly $850 billion in the U.S. alone. According to the global Merchant Risk Council, the abuse of refund and return policies is the most common type of fraud retailers face. Despite substantial investments in fraud prevention measures, such as identity verification and risk assessment, the ability of merchants to effectively detect and prevent fraud remains inadequate, according to ReBound.

„The returns process has become a blind spot for retailers. Investment in fraud prevention is focused almost entirely on the point of purchase. Once a return is initiated, most retailers are operating without the visibility they need to catch what is actually coming back to them.“
– Wouter ten Heggeler, Product Manager at ReBound Returns

www.reboundreturns.com