NRF webinar recap: Retail return fraud isn’t slowing down—retailers shouldn’t either
Summary:
Last week, Happy Returns teamed up with the National Retail Federation (NRF) to explore the rising phenomenon of retail return fraud and shared strategies to tackle it head-on.
David Sobie (co‑founder & CEO, Happy Returns) joined David Johnston (VP, Asset Protection & Retail Operations, NRF) and to unpack why return fraud is accelerating and how retailers can defend against it while not compromising top-notch customer experience.
Sobie shared practical steps retailers can take to set up multi-front fraud prevention, including smarter return policies, better tech, and fraud prevention strategies that still prioritize shopper convenience.
Read the full recap from NRF: Return fraud isn’t slowing down — retailers shouldn’t either
What is retail return fraud and why is it getting worse?
As Sobie noted during the webinar conversation, retail return fraud is “the dark side of convenience,” noting that as returns have become simpler, opportunistic fraud has followed.
Key tactics that constitute this sharp rise in fraud schemes include:
Empty-box scams – returning a package with nothing inside
Label tampering – manipulating tracking to trigger refunds
Price-switching and quantity fraud – swapping items or returning less than claimed
No‑proof, no-receipt returns – exploiting lenient policies
Three paths forward: Protect without penalizing
Sobie offered a three-pronged approach to defend against retail return fraud:
1. Rethink Returns Policy & Process
Trigger refunds after item verification
Tailor return windows and methods; one-size-fits-all can invite abuse
2. Use Predictive Technology
Leverage machine learning to flag suspicious return patterns
Deploy secure QR labels and enhanced tracking to prevent tampering
3. Keep Customer Experience Central
Remember: most returns are honest
A frictionless process builds loyalty, so it’s essential to balance convenience with protection
To learn more about retail return fraud, how it’s affecting retailers today, and what Happy Returns is doing to help retailers defend against it, read the full recap from NRF: Return fraud isn’t slowing down — retailers shouldn’t either