By Liam Thomas
Organized criminals are using more and more resources for return and refund fraud. If you need more information concerning these types of fraud and want to find a reputable processor offering exceptional services to mitigate chargebacks, just keep on reading below.
Organized Crime & Chargebacks
Organized crime happens when individuals try to get refunds while retaining the product(s) they’ve bought. Fraudsters are preparing to take advantage of the increased online sales, and holiday shopping seasons are a special “opportunity” for them to focus on return and refund schemes.
Return fraud happens when the criminal uses the return process to defraud a retail store, and criminals use more than one way to commit this type of crime. Both individuals and small groups, as well as larger criminal rings can be involved in the process of fraudulent returns.
Now, when online sales and, correspondingly, fraud and chargebacks have grown to an unprecedented extent, you should look for the best merchant services to fight them. Work with a reputable processor dedicated to providing the latest and the most secure chargebacks mitigation and fraud reduction solutions. Make sure the offered rates are among the cheapest in the country.
Latest Scheme: Return & Refund Fraud
RetailDive has reported that, as of 2020, 88% of shoppers want to be able to return a purchase, and for 95% of them, a smooth return process will turn them into repeat buyers. The facts that returns are on the rise, and retailers are in a challenging situation are undeniable.
Last year, in November, the NRF (National Retail Federation) projecting retail sales accounted for $730.7 billion. The latter meant that, because of fraudulent returns, retail stores and financial institutions might lose billions of dollars in losses.
Fraudulent returns represent a type of organized retail crime; called “merchandise return fraud,” these fraudulent returns are completed without receipts. Expect to find them mostly in the biggest cities, such as New York City, Los Angeles, Miami, Chicago, and Houston.
To wrap things up, the recent surge in online sales has led to a huge rise in online payment processing fraud and chargebacks. Criminals are focused on return and refund fraud. So, work only with a respectable merchant processor to protect your business to the best possible extent.
Author Bio: Blair Thomas has been a music producer, bouncer, screenwriter and for over a decade has been the proud Co-Founder of eMerchantBroker, the highest rated high risk merchant account processor in the country that can best help you with chargebacks. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.
