Holiday shopping fraud cost for retailers estimated to reach 2.2 billion dollars

In a recent study, the National Retail Federation (NRF) predicts that fraudulent returns would account for 3.5 percent of 2014 holiday sales totalling around 3.8 billion dollars, what is slightly higher than the figure reached last year.

In total, holiday shopping fraud is expected to cost retailers 2.2 billion dollars this year, reports 'BizReport'.

Main types of fraud committed in these days is the return of stolen goods, with 91.9 percent of retailers polled claiming to have come up against this scenario. Another type is 'wardrobing' - or the return of used merchandise that is non-defective - such as buying a party dress, wearing it for New Year, and then sending it back as a return, highlights data gathered by the NRF.

"Retailers have the difficult task of providing superior customer service by always giving the benefit of the doubt to their shoppers when it comes to returns, while simultaneously working to make sure they protect their business assets," said Bob Moraca, VP of Loss Prevention at NRF.

"We expect retailers to continue their tried and true ways of combating fraud through increased usage of identification verification, as well as seeking new and innovative approaches on the back end,” sums up Moraca in a note.