Online return fraud is the abuse of a retailer's return policy for financial gain, costing businesses billions and including tactics like returning used or swapped items, falsely claiming products arrived damaged, and using fake receipts. It involves various schemes, from "wardrobing" (using an item and returning it) to more complex methods like returning empty boxes or a cheaper item in place of the original. Retailers are combating this by implementing stricter policies, using data to identify fraudulent patterns, and even taking legal action against repeat offenders.
 
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