Since last year, the normalization of thefts in physical stores has taken over the internet. On social media, hashtags like #shoplifting #cleptogirls or #cleptotwt point to content based on various thefts, which internet users proudly publish. The idea of transgressing the system with small thefts and still posting on the web has generated an uncomfortable romanticization of a criminal practice.
And if this trend has gained space on the internet, it would be a mistake to think that e-commerce is free from similar practices. It’s not unusual to see consumers taking advantage of online retail by abusing stores’ commercial policies. However, according to Signifyd, a global anti-fraud technology company in e-commerce, consumer abuses are on the rise.
A common example of consumer abuse occurs in returns. This type of abuse consists of taking advantage of the return policies of products, a fair convenience created by e-commerce channels with significant investment in logistics and automation to facilitate the shopping experience.
There is a fine line between return abuses and return fraud, but both harm e-commerce as consumers and fraudsters exploit loopholes to obtain products for free or recover money improperly. Check out some maneuvers:
- Wardrobing: common in the fashion sector, the customer buys a product, uses it, and then returns it as if it were new.
- Bracketing: the customer buys several versions of the same product, tries them out, and returns the ones they don’t want, leaving the retailer with the shipping and processing costs.
- Fraudulent exchange: returning a counterfeit or damaged item in place of the original.
- Return chargeback: the customer requests a payment refund claiming to have returned the product, but the merchant does not receive the item.
- Empty return: sending an empty box without the product or containing an irrelevant object, such as a brick or a potato, to circumvent the refund system.
“Online retailers invest in technology and logistics to address return issues and thus build customer loyalty with better shopping experiences. According to Signifyd’s research, by 2025, 7 out of 10 Brazilians have already needed to return a product. This is a movement that is part of e-commerce. However, this operation, already costly for e-commerce, becomes a serious problem when consumers take advantage to commit abuses, without realizing the extent of the accumulating losses”, analyzes Laís Lima, Signifyd’s Latam marketing director.
The impact for retail is significant: in 2023, global retailers incurred approximately US$700 billion in return costs; in the USA alone, the loss was US$103 billion. The global forecast is for this number to increase to US$1 trillion by 2030, according to estimates from the National Retail Federation and Appriss Retail, which analyze the financial impact of returns in e-commerce.
Not all returns are malicious, and sometimes they can come from habits considered legitimate by consumers, like the previously mentioned bracketing. “It is difficult for online stores to track return abuse because it comes from legitimate customers,” explains Laís.
According to Signifyd’s research in Brazil, 9% of Brazilians have purchased a product knowing they would return it, and 89% of them find this movement normal.
“Tracking return abuse for online stores is difficult because they come from legitimate customers,” explains Laís. “In addition, e-commerce must also deal with fraudsters who appear as legitimate buyers due to the sophisticated methods they use, the lack of unified data and system intelligence, and the fear of harming the customer experience. A combination of factors that makes it very complex to avoid losses from online returns,” she concludes.
These trends point to a new challenge for brands selling online: to decompress their business margins and improve growth opportunities, they need to balance innovation and fraud protection without harming the experience of good customers, who expect quick and hassle-free exchanges and returns.
Practices such as clear and structured return policy; authentication of returns; and restocking fees for high-value products can help reduce scams. However, only monitoring return patterns that identify consumers with a suspicious history of abusive or fraudulent returns makes e-commerce capable of detecting anomalous patterns and preventing abuses.
This monitoring is possible through AI-based solutions and data technology, which provide intelligence on returns and proactive loss prevention actions. “An efficient return policy does not just mean accepting returns indiscriminately. The use of technology is now the greatest ally in this major challenge of differentiating legitimate consumers from fraudsters and ensuring e-commerce protection without harming the customer experience, not only during purchase but also post-purchase,” emphasizes Laís.
