Retail industry groups continue to report significant annual losses tied to return fraud, including practices like "wardrobing," where a shopper purchases an item, uses it briefly, and returns it for a full refund.
Industry estimates place the scale of return-related fraud in the billions of dollars annually across the retail sector, a cost that some analysts note factors indirectly into how retailers structure markup and promotional pricing in categories most affected, such as apparel and formalwear.
Retailers have responded with a range of measures, including shorter return windows on certain promotional items and increased use of return-tracking systems, though policies continue to vary widely by retailer and category.