National Retail Federation’s recent 2014 Return Fraud Survey reveals that retail companies’ losses to return fraud for the year 2014 may reach $10.9 billion. An estimated $3.8 billion of this will have occurred during the holiday season alone.
Return fraud takes many forms—use of counterfeit receipts, the return of merchandise purchased with fraudulent or stolen payment methods, “wardrobing” (returning used non-defective merchandise such as special-occasion apparel), gift card fraud, and even employee return fraud.
Large, more experienced crime rings continue to pose serious threats to retailers, compromising their operations and their profits.
Although it can’t completely stop return fraud, today’s sophisticated technology can do much to keep criminals at arm’s length. A good POS System like NCR’s Counterpoint has add-on features like Smart Alerts that will help retailers stay informed about their transactions and send notifications of suspicious activity such as a large price override, excessive “no sale” transactions, returns after store hours, excessive voided tickets, and large discount transactions. A notification allows the retailer to take immediate action, preventing another occurrence. Retailers can specify the type of activity they want reported.
If you would like more information about Smart Alerts, call CCS today at 800/425-672-4806 or email us.