Receipts & 2011 Holiday Return Fraud

RECEIPTS & 2011 HOLIDAY RETURN FRAUD To most people, the holidays are a time to give, relax, and spend time with loved ones. To retailers, the holidays represent something much darker: an enormous threat to their bottom line in the form of returned gift fraud. Here, we visualize the National Retail Federation's 2011 Return Fraud Survey to explore the problem-and the role receipts play in its continuance. ANNUAL MERCHANDISE RETURNS OVER THE YEARS The NRF survey found $3.48 billion of the overall $46.28 billion in 2011 holiday returns to be fraudulent. Here are the totals for each year sintce 2006 (in billions): Mero returned every year Holiday me returned ndise handise Frau urns annually holiday returns 250 $217 $203.77 200 $189.94 $181.76 $169.37 150 100 $39.68 $43.30 $41.99 $44.39 $46.28 50 $10.38 $3.54 $10.98 $3.25 $13.66 I$3.73 $14.37 I$3.48 $9.4 $2.7 2007 2008 2009 2010 2011 HOW DO RETAILERS CHANGE THEIR RETURN POLICIES FOR THE HOLIDAYS? In light of the potential losses, one might expect retailers to tighten their return policies for the holidays. Yet the study shows most do not alter their policies. Compared to last holiday season, stores' return policies will: Tighten Remain Unchanged Loosen 100 4.8% 3.4% 5.5% 4.9% EFEEET 3.8% 11% 80 60 70.2% 81.3% 80.3% 71.9% 83.6% 82.5% 40 20 25% 15.3% 17.1% 15.9% 10.9% 12.6% 2006 2007 2008 2009 2010 2011 In fact, a significant percentage of retailers say their return policies become more lenient to accommodate holiday returns Does your return policy become more lenient during the holiday season to accommodate holiday returns? 35% 52% 28% 33% 37% YES NO 65% 48% 72% 67% 63% Amazingly, even in today's era of identity theft, over 30 percent of merchants do not require customers to show identification for returns. Do you require customers to show an ID when making a return? 2010 2011 Yes, for returns with receipt Yes, for returns without a receipt No, we do not require customers to show ID 21.1% 67% 33% 10.7% 62.1% 35% WHICH TYPES OF RETURN FRAUD HAVE RETAILERS EXPERIENCED? Curiously, the percentage of companies reporting receipt fraud has declined steadily almost every year, inching up just slightly in 2011. Which examples of return fraud have your company experienced in the past year? 2006 2007 2008 2009 2010 2011 Returns of stolen merchandise 100 ...*** is. 2% 93.1% 93.5% 91.5% 88.9% Employee return fraud or collusion with 89.1% 88.8% 83.1% 81.2% external sources 80 *74.1% 68.2% Returns of merchandise 69.1% 66.1% purchased on fraudulent or stolen tender 64.2% 61.7% 61.4% 60 52.3% 50.8% 46.2% 43.1% 45.7% Wardrobing (returns of used, non-defective merchandise) 38.6% 40 .... 35.5% ....... 20 Returns using counterfeit receipts HOW TO AVOID RETURN HASSLES Honest shoppers can avoid return-related hassles by: Policies Ordering with a credit card Keeping the receipt Bringing the original product packaging Knowing the retailer's return policy Any or all of these will help ensure a smooth, pain-free return process. Receipt fraud, while still a significant problem individually, is not a leading contributor to return fraud as a whole. SOURCE: RETURN FRAUD SURVEY 2011 BY NRF RECEIPTS & 2011 HOLIDAY RETURN FRAUD To most people, the holidays are a time to give, relax, and spend time with loved ones. To retailers, the holidays represent something much darker: an enormous threat to their bottom line in the form of returned gift fraud. Here, we visualize the National Retail Federation's 2011 Return Fraud Survey to explore the problem-and the role receipts play in its continuance. ANNUAL MERCHANDISE RETURNS OVER THE YEARS The NRF survey found $3.48 billion of the overall $46.28 billion in 2011 holiday returns to be fraudulent. Here are the totals for each year sintce 2006 (in billions): Mero returned every year Holiday me returned ndise handise Frau urns annually holiday returns 250 $217 $203.77 200 $189.94 $181.76 $169.37 150 100 $39.68 $43.30 $41.99 $44.39 $46.28 50 $10.38 $3.54 $10.98 $3.25 $13.66 I$3.73 $14.37 I$3.48 $9.4 $2.7 2007 2008 2009 2010 2011 HOW DO RETAILERS CHANGE THEIR RETURN POLICIES FOR THE HOLIDAYS? In light of the potential losses, one might expect retailers to tighten their return policies for the holidays. Yet the study shows most do not alter their policies. Compared to last holiday season, stores' return policies will: Tighten Remain Unchanged Loosen 100 4.8% 3.4% 5.5% 4.9% EFEEET 3.8% 11% 80 60 70.2% 81.3% 80.3% 71.9% 83.6% 82.5% 40 20 25% 15.3% 17.1% 15.9% 10.9% 12.6% 2006 2007 2008 2009 2010 2011 In fact, a significant percentage of retailers say their return policies become more lenient to accommodate holiday returns Does your return policy become more lenient during the holiday season to accommodate holiday returns? 35% 52% 28% 33% 37% YES NO 65% 48% 72% 67% 63% Amazingly, even in today's era of identity theft, over 30 percent of merchants do not require customers to show identification for returns. Do you require customers to show an ID when making a return? 2010 2011 Yes, for returns with receipt Yes, for returns without a receipt No, we do not require customers to show ID 21.1% 67% 33% 10.7% 62.1% 35% WHICH TYPES OF RETURN FRAUD HAVE RETAILERS EXPERIENCED? Curiously, the percentage of companies reporting receipt fraud has declined steadily almost every year, inching up just slightly in 2011. Which examples of return fraud have your company experienced in the past year? 2006 2007 2008 2009 2010 2011 Returns of stolen merchandise 100 ...*** is. 2% 93.1% 93.5% 91.5% 88.9% Employee return fraud or collusion with 89.1% 88.8% 83.1% 81.2% external sources 80 *74.1% 68.2% Returns of merchandise 69.1% 66.1% purchased on fraudulent or stolen tender 64.2% 61.7% 61.4% 60 52.3% 50.8% 46.2% 43.1% 45.7% Wardrobing (returns of used, non-defective merchandise) 38.6% 40 .... 35.5% ....... 20 Returns using counterfeit receipts HOW TO AVOID RETURN HASSLES Honest shoppers can avoid return-related hassles by: Policies Ordering with a credit card Keeping the receipt Bringing the original product packaging Knowing the retailer's return policy Any or all of these will help ensure a smooth, pain-free return process. Receipt fraud, while still a significant problem individually, is not a leading contributor to return fraud as a whole. SOURCE: RETURN FRAUD SURVEY 2011 BY NRF RECEIPTS & 2011 HOLIDAY RETURN FRAUD To most people, the holidays are a time to give, relax, and spend time with loved ones. To retailers, the holidays represent something much darker: an enormous threat to their bottom line in the form of returned gift fraud. Here, we visualize the National Retail Federation's 2011 Return Fraud Survey to explore the problem-and the role receipts play in its continuance. ANNUAL MERCHANDISE RETURNS OVER THE YEARS The NRF survey found $3.48 billion of the overall $46.28 billion in 2011 holiday returns to be fraudulent. Here are the totals for each year sintce 2006 (in billions): Mero returned every year Holiday me returned ndise handise Frau urns annually holiday returns 250 $217 $203.77 200 $189.94 $181.76 $169.37 150 100 $39.68 $43.30 $41.99 $44.39 $46.28 50 $10.38 $3.54 $10.98 $3.25 $13.66 I$3.73 $14.37 I$3.48 $9.4 $2.7 2007 2008 2009 2010 2011 HOW DO RETAILERS CHANGE THEIR RETURN POLICIES FOR THE HOLIDAYS? In light of the potential losses, one might expect retailers to tighten their return policies for the holidays. Yet the study shows most do not alter their policies. Compared to last holiday season, stores' return policies will: Tighten Remain Unchanged Loosen 100 4.8% 3.4% 5.5% 4.9% EFEEET 3.8% 11% 80 60 70.2% 81.3% 80.3% 71.9% 83.6% 82.5% 40 20 25% 15.3% 17.1% 15.9% 10.9% 12.6% 2006 2007 2008 2009 2010 2011 In fact, a significant percentage of retailers say their return policies become more lenient to accommodate holiday returns Does your return policy become more lenient during the holiday season to accommodate holiday returns? 35% 52% 28% 33% 37% YES NO 65% 48% 72% 67% 63% Amazingly, even in today's era of identity theft, over 30 percent of merchants do not require customers to show identification for returns. Do you require customers to show an ID when making a return? 2010 2011 Yes, for returns with receipt Yes, for returns without a receipt No, we do not require customers to show ID 21.1% 67% 33% 10.7% 62.1% 35% WHICH TYPES OF RETURN FRAUD HAVE RETAILERS EXPERIENCED? Curiously, the percentage of companies reporting receipt fraud has declined steadily almost every year, inching up just slightly in 2011. Which examples of return fraud have your company experienced in the past year? 2006 2007 2008 2009 2010 2011 Returns of stolen merchandise 100 ...*** is. 2% 93.1% 93.5% 91.5% 88.9% Employee return fraud or collusion with 89.1% 88.8% 83.1% 81.2% external sources 80 *74.1% 68.2% Returns of merchandise 69.1% 66.1% purchased on fraudulent or stolen tender 64.2% 61.7% 61.4% 60 52.3% 50.8% 46.2% 43.1% 45.7% Wardrobing (returns of used, non-defective merchandise) 38.6% 40 .... 35.5% ....... 20 Returns using counterfeit receipts HOW TO AVOID RETURN HASSLES Honest shoppers can avoid return-related hassles by: Policies Ordering with a credit card Keeping the receipt Bringing the original product packaging Knowing the retailer's return policy Any or all of these will help ensure a smooth, pain-free return process. Receipt fraud, while still a significant problem individually, is not a leading contributor to return fraud as a whole. SOURCE: RETURN FRAUD SURVEY 2011 BY NRF RECEIPTS & 2011 HOLIDAY RETURN FRAUD To most people, the holidays are a time to give, relax, and spend time with loved ones. To retailers, the holidays represent something much darker: an enormous threat to their bottom line in the form of returned gift fraud. Here, we visualize the National Retail Federation's 2011 Return Fraud Survey to explore the problem-and the role receipts play in its continuance. ANNUAL MERCHANDISE RETURNS OVER THE YEARS The NRF survey found $3.48 billion of the overall $46.28 billion in 2011 holiday returns to be fraudulent. Here are the totals for each year sintce 2006 (in billions): Mero returned every year Holiday me returned ndise handise Frau urns annually holiday returns 250 $217 $203.77 200 $189.94 $181.76 $169.37 150 100 $39.68 $43.30 $41.99 $44.39 $46.28 50 $10.38 $3.54 $10.98 $3.25 $13.66 I$3.73 $14.37 I$3.48 $9.4 $2.7 2007 2008 2009 2010 2011 HOW DO RETAILERS CHANGE THEIR RETURN POLICIES FOR THE HOLIDAYS? In light of the potential losses, one might expect retailers to tighten their return policies for the holidays. Yet the study shows most do not alter their policies. Compared to last holiday season, stores' return policies will: Tighten Remain Unchanged Loosen 100 4.8% 3.4% 5.5% 4.9% EFEEET 3.8% 11% 80 60 70.2% 81.3% 80.3% 71.9% 83.6% 82.5% 40 20 25% 15.3% 17.1% 15.9% 10.9% 12.6% 2006 2007 2008 2009 2010 2011 In fact, a significant percentage of retailers say their return policies become more lenient to accommodate holiday returns Does your return policy become more lenient during the holiday season to accommodate holiday returns? 35% 52% 28% 33% 37% YES NO 65% 48% 72% 67% 63% Amazingly, even in today's era of identity theft, over 30 percent of merchants do not require customers to show identification for returns. Do you require customers to show an ID when making a return? 2010 2011 Yes, for returns with receipt Yes, for returns without a receipt No, we do not require customers to show ID 21.1% 67% 33% 10.7% 62.1% 35% WHICH TYPES OF RETURN FRAUD HAVE RETAILERS EXPERIENCED? Curiously, the percentage of companies reporting receipt fraud has declined steadily almost every year, inching up just slightly in 2011. Which examples of return fraud have your company experienced in the past year? 2006 2007 2008 2009 2010 2011 Returns of stolen merchandise 100 ...*** is. 2% 93.1% 93.5% 91.5% 88.9% Employee return fraud or collusion with 89.1% 88.8% 83.1% 81.2% external sources 80 *74.1% 68.2% Returns of merchandise 69.1% 66.1% purchased on fraudulent or stolen tender 64.2% 61.7% 61.4% 60 52.3% 50.8% 46.2% 43.1% 45.7% Wardrobing (returns of used, non-defective merchandise) 38.6% 40 .... 35.5% ....... 20 Returns using counterfeit receipts HOW TO AVOID RETURN HASSLES Honest shoppers can avoid return-related hassles by: Policies Ordering with a credit card Keeping the receipt Bringing the original product packaging Knowing the retailer's return policy Any or all of these will help ensure a smooth, pain-free return process. Receipt fraud, while still a significant problem individually, is not a leading contributor to return fraud as a whole. SOURCE: RETURN FRAUD SURVEY 2011 BY NRF RECEIPTS & 2011 HOLIDAY RETURN FRAUD To most people, the holidays are a time to give, relax, and spend time with loved ones. To retailers, the holidays represent something much darker: an enormous threat to their bottom line in the form of returned gift fraud. Here, we visualize the National Retail Federation's 2011 Return Fraud Survey to explore the problem-and the role receipts play in its continuance. ANNUAL MERCHANDISE RETURNS OVER THE YEARS The NRF survey found $3.48 billion of the overall $46.28 billion in 2011 holiday returns to be fraudulent. Here are the totals for each year sintce 2006 (in billions): Mero returned every year Holiday me returned ndise handise Frau urns annually holiday returns 250 $217 $203.77 200 $189.94 $181.76 $169.37 150 100 $39.68 $43.30 $41.99 $44.39 $46.28 50 $10.38 $3.54 $10.98 $3.25 $13.66 I$3.73 $14.37 I$3.48 $9.4 $2.7 2007 2008 2009 2010 2011 HOW DO RETAILERS CHANGE THEIR RETURN POLICIES FOR THE HOLIDAYS? In light of the potential losses, one might expect retailers to tighten their return policies for the holidays. Yet the study shows most do not alter their policies. Compared to last holiday season, stores' return policies will: Tighten Remain Unchanged Loosen 100 4.8% 3.4% 5.5% 4.9% EFEEET 3.8% 11% 80 60 70.2% 81.3% 80.3% 71.9% 83.6% 82.5% 40 20 25% 15.3% 17.1% 15.9% 10.9% 12.6% 2006 2007 2008 2009 2010 2011 In fact, a significant percentage of retailers say their return policies become more lenient to accommodate holiday returns Does your return policy become more lenient during the holiday season to accommodate holiday returns? 35% 52% 28% 33% 37% YES NO 65% 48% 72% 67% 63% Amazingly, even in today's era of identity theft, over 30 percent of merchants do not require customers to show identification for returns. Do you require customers to show an ID when making a return? 2010 2011 Yes, for returns with receipt Yes, for returns without a receipt No, we do not require customers to show ID 21.1% 67% 33% 10.7% 62.1% 35% WHICH TYPES OF RETURN FRAUD HAVE RETAILERS EXPERIENCED? Curiously, the percentage of companies reporting receipt fraud has declined steadily almost every year, inching up just slightly in 2011. Which examples of return fraud have your company experienced in the past year? 2006 2007 2008 2009 2010 2011 Returns of stolen merchandise 100 ...*** is. 2% 93.1% 93.5% 91.5% 88.9% Employee return fraud or collusion with 89.1% 88.8% 83.1% 81.2% external sources 80 *74.1% 68.2% Returns of merchandise 69.1% 66.1% purchased on fraudulent or stolen tender 64.2% 61.7% 61.4% 60 52.3% 50.8% 46.2% 43.1% 45.7% Wardrobing (returns of used, non-defective merchandise) 38.6% 40 .... 35.5% ....... 20 Returns using counterfeit receipts HOW TO AVOID RETURN HASSLES Honest shoppers can avoid return-related hassles by: Policies Ordering with a credit card Keeping the receipt Bringing the original product packaging Knowing the retailer's return policy Any or all of these will help ensure a smooth, pain-free return process. Receipt fraud, while still a significant problem individually, is not a leading contributor to return fraud as a whole. SOURCE: RETURN FRAUD SURVEY 2011 BY NRF