Fraud and abuse in online returns cost retailers £29m over 10 months, driven by fragmented data and rising return rates.
Retailers faced £29m in losses from returns fraud over 10 months, as online return rates near 20%. The data covers one million returned orders processed between July 2025 and May 2026, highlighting a growing challenge for the sector.
The US market alone sees return values approaching $850bn, with fraud cases rising despite identity verification and risk-scoring systems. Many retailers refund customers before inspecting returned goods, while fragmented data across platforms complicates fraud detection.
A mid-market fashion retailer with £100m in revenue could face significant annual losses from even modest fraud rates, the report warns.