Analysis of one million real-world shopper returns finds £29 million in potentially fraudulent activity, with retailers exposed to significant gaps in detection
LONDON, June 22, 2026–(BUSINESS WIRE)–New research has revealed the huge cost of returns fraud. Omnichannel returns management specialist ReBound Returns analysed data from one million returned orders on behalf of retail clients between July 2025 and May 2026. It found £29 million of potentially fraudulent returns, exposing a gap in retailer’s ability to detect and prevent fraud at scale.
Return rates are now approaching 20% of all online sales, with a total market value nearing $850 billion in the US alone. As returns rates increase, instances of returns fraud and abuse are growing too, with the global Merchant Risk Council deeming ‘refund and returns policy abuse’ to be the most prevalent fraud type facing merchants…
These frauds exploit emotional vulnerability and trust rather than technical weaknesses.
- Romance Scams: Scammers build long-term online relationships with victims, eventually fabricating a “crisis” (medical emergency, legal trouble, or travel costs) that requires the victim to send money.
- Pig Butchering: A hybrid scam where the criminal builds a romantic or platonic relationship to eventually “tutor” the victim in a fraudulent cryptocurrency investment.