
What Is Refund Fraud and How Can You Detect It?
Among the many challenges e-commerce businesses face, none are as problematic as the issue of fraudsters. Companies have to be on alert and have different strategies for fighting fraud. One of the most common ways fraud is committed is through illegitimate returns. Recent reports show that the rate of online returns was to reach 10% by 2022. Many online shoppers now know how easy it is to deceive online businesses and bypass any inspection process they may have. In fact, there are hundreds of materials online and guides that show how to get additional refunds from online stores. What Is Refund Fraud? Return fraud is a way of stealing from businesses by bypassing the company’s return policies. A person who does this act is said to be committing friendly fraud. This is because a legitimate purchase was made but in a deceptive way. The person committing such fraud intends to profit from the business by stealing. Most return fraud cases involve using stolen credit cards, or the person may claim not to have received the delivery. It is usual for businesses to accept returns from buyers as it builds trust. The benefit is that it encourages customer loyalty so they can always come back to do business and promotes a long-term relationship. Return policies may be suitable for businesses, but it also becomes a problem with the rise in return fraud. In this article, we will be looking at how to identify, prevent and possibly fight this kind of fraud.