What to Know about Retail Fraud

 Posted on May 10, 2018 in Uncategorized

Over the past several years, the Internet has made a huge impact on society. Online shopping has been made possible, as there is more convenience from buying products from a laptop or phone. Since there has been more of a convenience with online shopping, retail fraud has been on the rise, and companies, especially those that are online, are trying to find ways to avoid fraud.

Retail Fraud and How It Affects Society

By the end of 2017, the main driving forces of fraud included international transactions and mobile wallets, which are considered to be examples of newer payment options. During the holiday season, fraudulent returns were the biggest concern of companies, as retail return fraud may cost companies at least $15 billion.

Even with the strongest cybersecurity, it is still hard to verify an online shopper’s identity. There tends to be a lull between the time that the order has been placed and when the transaction is confirmed. The lag can be grounds for more retail shopping errors and fraudulent activity.

How Is Retail Fraud Committed?

Retail fraud often includes an individual who will steal products online or in a brick-and-mortar retail store. Then, he or she may attempt to return the stolen products for a gift card or money. There are also many situations where the individual may go into major retailers to take advantage of their return policies, which are not very strict. Many of these cases involve individuals who have drug addictions, and they want to take advantage of the return policies to earn money for their addiction.

Another creative approach to retail fraud includes counterfeiting store receipts. The individual who prints out the counterfeit receipt often processes a fraudulent return more easily.

Statistics of Retail Fraud

As much as 11 percent of total retail sales are expected to be returned every year. However, 11 percent of the returns are often expected to be fraudulent. In 2016, the level of retail fraud as a percentage of retailers’ revenues was as much as 1.47 percent. In 2017, the level of retail fraud climbed to 1.58 percent.

Call a Chicago Criminal Defense Attorney

Being charged with retail fraud is very serious, and can affect your chances of finding employment, your relationships with family and friends, and your overall quality of life. If you have been accused of committing retail fraud, you can count on the Law Offices of Hal M. Garfinkel LLC, Chicago Criminal Defense Attorney for effective legal assistance. To schedule a free initial consultation with our Cook County criminal defense lawyers, please call 312-629-0669 to discuss your case.

Source:

https://www.cnbc.com/2017/12/07/retail-fraud-is-on-the-rise-as-companies-grapple-for-solutions.html