External Theft: Customer and Ecommerce Fraud

What fraud is common and is automatically detected as a payment and processed through the POS system, which will then decline the transaction.

• check fraud

• credit and debit card fraud

• package switching

• shoplifting

Picking up items, concealing the items, or intentionally leaving the store without paying for the items.

• credit and debit card fraud

• checks

• package switching

• shoplifting

What form of payment is not commonly used today, and retailers that do accept them tend to process them as an electronic fund transfer.

• shoplifting

• checks

• package switching

• credit and debit card

What fraud occurs when a thief takes a over-priced item out of a package and replaces it with a higher-priced item.

• shoplifting

• package switching

• credit and debit card fraud

• checks

A variety of ways that dishonest people use the retailer's return system and processes for personal gain

• refund fraud

• returning stolen merchandise

• receipt fraud

• switch fraud

Stolen items are returned for a refund, exchange or store credit.

• returning stolen merchandise

• receipt fraud

• switch fraud

• wardrobing or renting

Thieves find discarded receipts, then find items that match the items on the receipt from the store and attempt to return them.

• refund fraud

• returning stolen merchandise

• switch fraud

• receipt fraud

When a customer purchases a new item, it works fine, but then the customer returns a damaged or broken identical item that they already owned and gets their money back -- and gets to keep the working item!

• returning stolen merchandise

• switch fraud

• receipt fraud

• refund fraud

Purchasing an item -- usually a clothing item -- for a special event, using it but keeping the tag on, and then returning it after the event.

• refund fraud

• receipt fraud

• switch fraud

• "wardrobing" or "renting"

Thieves use someone else's stolen personal information to purchase merchandise.

• Automated fraud

• Return fraud

• Account takeover/Loyalty fraud

• Identify fraud