U.S. retailers lost $130 billion to fraudulent returns, per Appriss Retail, provider of data and analytics solutions.  In its Annual Consumer Returns report,  Apprriss noted that 15.14% of all returns were deemed fraudulent.  

Total merchandise returns for the year reached $685 billion, representing 13.21% of total retail sales, which amounted to $5.19 trillion in 2024, according to the report.

Over 60% of retailers surveyed reported incidents of “wardrobing,” or the act of consumers buying an item, using the merchandise, and then returning it.

55% cited cases of returning an item obtained through fraudulent or stolen tender, such as stolen credit cards, counterfeit bills, gift cards obtained through fraudulent means or fraudulent checks.

48% of retailers faced occurrences of returning stolen merchandise.

“Returns are a significant cost for retailers, and the rise of online shopping could increase this trend,” said Kevin Mahoney, managing director, retail, Deloitte Consulting LLP.