NRF Puts Cost of Retail Fraud at $3.7 Billion Over Holidays
Retailers in the U.S. will be defrauded of nearly $4 billion this year from fraudulent returns of holiday gifts, according to figures released last month by the National Retail Federation. The numbers were released as part of NRF’s annual Return Fraud survey.
The retail group also predicted that 9 percent of returns would be fraudulent, up from 8.6 percent in 2006. The yearly total for return fraud, according to the NRF, was expected to be $10.8 billion. Much of the trend is due to “wardrobing,” which is when used items, especially clothes, are returned.
The survey was an estimate made earlier in the holiday season; statistics are not yet available as to how accurate they turned out.