Fraudulent returns and claims cost U.S. retailers $103 billion in losses in 2024, while more than 15% of all returns were found to be fraudulent. 

Despite the fact that 84% of the 150 retail executives surveyed by Appriss Retail said that they had tightened their return policies to fend off fraud over the last year, almost half dealt with returns of stolen merchandise, while 55% had items returned after being purchased with stolen credit cards, gift cards or counterfeit bills. 

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"It’s clear why retailers want to limit bad actors that exhibit fraudulent and abusive returns behavior, but the reality is that they are finding stricter returns policies are not reducing the returns fraud they face," said Appriss Retail CEO Michael Osborne, adding that retailers should instead develop data-driven technology to flag suspicious return patterns, rather than implementing more restrictive practices, such as limiting return windows or requiring receipts. 

Across Appriss Retail's 60 U.S. retail clients, total merchandise returns in 2024 were valued at $685 billion, and made up more than 13% of all sales. Customer-friendly return policies have also been a priority for shoppers, with 55% of 1,000 consumers surveyed by Appriss saying that they had decided not to buy from retailers with restrictive requirements, while 70% had made additional purchases from a business after a positive return experience. In a separate survey of more than 2,000 consumers from the National Retail Federation, 67% said that a negative return experience would discourage them from shopping with a retailer again.