djdurant.com Loss prevention // Retail management

20Nov/090

Refund Fraud Indicators

I've compiled a list of useful refund fraud indicators...

  • Multipe refunds, one receipt: Can indicate that a customer returned one item, and the cashier/manager is using the receipt to refund the remaining items for cash.
  • UPC keyed, not scanned: Could mean that cashier/manager is using a found receipt to key in UPCs of items to refund (since the actual item isn't at the desk).
  • Multiples of a single item: Item may be available or near the register, and cashier/manager uses that item to refund for cash.
  • Percent of refund dollars to sales dollars/Percent of refund transactions/sales transactions: Deviation from the company/store average can indicate fraudlent refund transactions.
  • Multiple refunds to same credit card: It's not unusual for a person committing refund fraud to refund the money to their own credit card/debit card(or an accomplice's card).
  • Loose receipts at register: Receipts left behind by customers or reprinted receipts are left at register instead of being thrown away immediately.
  • Reprinted receipt used for refund: A reprinted receipt (your receipts do indicate "Not original receipt" or "Duplicate" when reprinted?) is used for a refund could indicate cashier/manager reprinted the receipt to use for a refund.

Any additional methods you use?

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