What is Retail Fraud?

Retail fraud happens online and in‑store: swiped‑card checkouts, return abuse, coupon stacking, account takeovers, reshipper networks, buy‑online‑pick‑up‑in‑store workarounds to ship‑as‑gift controls. Fraud can be hidden by promo spikes or policy gaps—it looks like growth until inventory disappears or chargebacks surface.

Watch for: orders to disposal addresses, new devices with large baskets, BOPIS pickups minutes after a change to an account, and repeat “customer service” phone calls leading agents around internal controls. Gift cards and instant credits? Think: cash‑out.

Layered defense is key: tie accounts to devices, score orders in the context of behavior, and divert high‑risk edges to targeted friction with payment fraud prevention. For recovery and high‑value changes, re‑prove the human with identity verification. Train staff to recognize social engineering and maintain an audit trail so representment isn’t a shot in the dark.

Make fraud expensive. Let shopping be easy.