Tips for Preventing Suspicious Returns and Return Fraud During the Holiday Period

The holiday season is a magical time for shoppers and retailers alike, but it also brings an increase in returns, with some not-so-festive challenges: return abuse and fraud. Extended return windows and tempting holiday deals give bad actors an opening to exploit, which can significantly impact your customer experience and bottom line.

To help you navigate this, Redo and Yofi have compiled a list of red flags and preventative tips to protect your business while keeping your loyal customers happy.
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Red Flags to Watch for This Holiday Season

1. Keep an Eye on Return Patterns
The holidays are busy, so it’s easy to overlook return patterns, but keeping track of them is key. Customers who frequently return high-value items or the same types of products should be a red flag. Patterns like this could be a sign of return abuse. Proactively tracking this can help you spot potential fraud before it snowballs.
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2. Watch for Refund Requests Without Returns
Fraudsters often try to exploit lenient holiday return policies by claiming they’ve returned an item when, in fact, they haven’t. If a customer requests a refund but doesn't send the product back—or provides vague excuses—take a closer look. Always ask for proof of return, especially for expensive items.
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3. Train Your Customer Support Team to Spot Suspicious Claims
Your customer support team is the front line in identifying fraud. Train them or ensure they have the information needed to flag unusual claims, especially those involving lost, damaged, or stolen items. Return abusers tend to repeat their tricks, so make sure to tag and track all suspicious claims to identify patterns early.
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4. Keep Tabs on IP Addresses and Unusual Behavior
Fraudsters often use technology to their advantage, creating multiple accounts to claim returns from the same IP address or device. Monitoring digital fingerprints can help you spot organized fraud, which tends to spike during the holiday rush.
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5. Tag and Track Damaged, Lost, or Stolen Item Claims
Fraudsters frequently leverage the same excuses. If a customer repeatedly claims items were damaged, lost, or stolen, be cautious. Tagging and tracking these claims over time will help you spot repeat offenders and stop them before they take advantage of your policies.
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6. Flag Suspicious Shipping Addresses

‍Return fraud isn’t just about the products—it’s also about where they’re sent. Keep an eye on high-volume returns coming from the same addresses, zip codes, or regions. It could be a sign of organized fraud groups targeting your business.
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7. Be Wary of Inconsistent Return Justifications‍

Vague claims are often used to disguise fraudulent behavior – Inconsistent reasons for returns can signal trouble. For example, if a customer frequently cites defects or shipping problems, but the returned products don’t show any real issues, it’s worth investigating further.
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8. Thinking Proactively‍

Amid the holiday craziness, we are often in firefighting mode. It is difficult to be proactive; our tools and processes are geared towards catching bad actors after the fact and there's nothing wrong with that. As these bad actors become increasingly sophisticated, start thinking about how things can be done differently to prevent users from having exploited returns in the first place.

Conclusion

While the holiday season brings plenty of excitement, it’s also prime time for return abuse and fraud. By staying on top of these red flags and leveraging tools like Redo and Yofi, you can protect your business without impacting customer service. This allows valued customers to get the premier level of service they should receive.

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Protect your business, stay fraud-free, and focus on spreading holiday cheer to your genuine customers! With Redo and Yofi in your corner, you’ve got everything you need to make this season a success.

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Happy holidays, and here’s to keeping both your customers and your profits in good shape!

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