Return fraud is costing US retailers an estimated $103 billion annually, with consumers increasingly abusing generous return policies. Small businesses are disproportionately affected, facing losses from customers returning damaged or used goods, falsely claiming defects, or even sending back entirely different items. While organized crime plays a role, everyday consumers are major culprits, emboldened by lax policies and a sense of entitlement. Retailers are responding by tightening return windows, implementing stricter policies, and using data to identify repeat offenders. The rise in return fraud reflects a growing us-versus-them mentality between consumers and businesses.

Prepared by Christopher Adams and reviewed by editorial team.