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Blake, Wm. The First Book of Urizen, object 2. 1794.

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Retailers in the U.S. are struggling with a surge in return fraud, with scams costing over $100 billion in 2023.

Fraudulent returns have doubled since 2020, reaching 13.7% of all returns last year. This year, the National Retail Federation is expecting that figure to reach 17%. 

Some people are “sending back a box of bricks instead of a television set” or returning a lower-priced item and slapping a higher-priced tag on it, one Gartner analyst said.

Temporary staff, who may not be thoroughly trained to detect fraud, are reportedly part of the problem during the peak holiday season.

Retailers are responding by charging fees for online returns and encouraging in-store returns.