In honor of Fraud Prevention month, Tom Rittman’s new whitepaper, featured on LossPrevention Magazine’s website, speaks to the importance of protecting retailers’ bottom lines with Fraud Prevention…
“It’s no secret that sales are down,” says Rittman. ”However, what many retailers don’t realize is that the rise in fraudulent and abusive returns is a contributing factor, costing them millions in profits. In fact, according to the National Retail Federation (NRF), returns and exchanges increased almost 20% over the past year. More and more, desperate consumers are using returns as “the new cash” creating a devastating effect on unwary retailers.”
In short, retailers must be proactive if they are to protect themselves from fraud and abuse, especially in today’s economic climate. Rittman suggests implementing a variety of approaches for fraud prevention, including:
- Proper Training – Work with staff to properly train them on company return policies and to follow up that they are utilizing those guidelines. This includes warning employees of the ramifications if caught processing fraudulent returns.
- Utilizing Technology – Implement return authorization programs such as Verify-1 to prevent fraudulent return activity, take the subjective nature out of the return process and protect customers’ privacy.
- Adequate Staffing – Provide proper staffing to increase positive interactions with customers as well as to deter fraud.
- Education – Remain updated on the latest fraud trends and work closely with staff to employ prevention strategies.
- Learning from Peers – Join a retail trade association like NRF or RILA and leverage the loss prevention expertise of your peers.
Rittman’s article illustrates that training and education are two key components to help your organization proactively prevent fraud and potentially save thousands of dollars.
