Return Fraud Statistics & Financial ImpactExamining Return Scams by the Numbers
Notable Return Fraud Statistics Heading into 2026
How much are fraudulent return requests really costing sellers? Take a guess: does return fraud cost merchants $100 million per year? $1 billion? Or $10 billion?
If you guessed $10 billion... then you’re still dramatically underestimating the real figure.
In this chapter, let’s take a closer look at the latest data on return fraud so that you can get a better feel for the full, industry-wide impact of this post-transaction scam.
The Cost of Return Fraud
Legitimate and fraudulent customer returns are a significant, costly, and unpleasant part of doing business.
The latest data from the Deloitte and Appriss Retail reveals that buyers returned 13.21% of all goods they purchased in 2024. That amounts to $685 billion in returns during that twelve-month period.
And, an estimated 15.14% of those returns — equivalent to about $103 billion in sales — are believed to have been fraudulent.
The Holiday Season is a Leading Concern
Returns are an especially big issue for retailers during the holiday season. According to a report by the National Retail Federation, returns in November and December were estimated to be 17% higher than in the rest of the year.
Here, consumer behavior is much to blame. As the report explains: “59% [of shoppers] say they are more likely to consider retailer return policies before making a purchase during the holidays. And for those returning any unwanted gifts, most will look to make those returns within a month of receiving the item.”
The NRF further notes that consumers returned $148 billion worth of retail purchases made during the 2023 holiday season. If 15.14% of those returns were fraudulent, that means US merchants lost $22.4 billion to return scams just in the six-week period between Thanksgiving and New Years.
What is the Broader Financial Impact of Return Fraud?
The $103 billion in fraudulent returns creates a cascading effect throughout the retail ecosystem that extends far beyond immediate losses.
Retailers have to absorb not only the lost merchandise value, but also processing costs, shipping expenses, restocking fees, and labor costs associated with handling fraudulent returns. Many items returned through fraud schemes can't be resold at full price, forcing retailers to liquidate inventory at significant markdowns.
To offset these mounting losses, a lot of retailers will end up implementing stricter return policies, higher return fees, and more stringent verification processes. While necessary for loss prevention, these measures create friction for legitimate customers and can negatively impact the shopping experience that drives customer loyalty and repeat business.
The financial strain is more acute for smaller retailers who lack the resources to absorb substantial fraud losses or invest in sophisticated fraud detection systems. Many are forced to restrict their return policies more aggressively than larger competitors. This would put them at a competitive disadvantage in markets where generous return policies have become customer expectations.
