Retailers Lose £29 Million to Returns Fraud Across 1 Million Orders, as New ReBound Data Reveals Industry "Blind Spot"
Analysis of one million real-world shopper returns finds £29 million in potentially fraudulent activity, with retailers exposed to significant gaps in detection
New research has revealed the huge cost of returns fraud. Omnichannel returns management specialist ReBound Returns analysed data from one million returned orders on behalf of retail clients between July 2025 and May 2026. It found £29 million of potentially fraudulent returns, exposing a gap in retailer’s ability to detect and prevent fraud at scale.
Return rates are now approaching 20% of all online sales, with a total market value nearing $850 billion in the US alone. As returns rates increase, instances of returns fraud and abuse are growing too, with the global Merchant Risk Council deeming 'refund and returns policy abuse' to be the most prevalent fraud type facing merchants today. This is despite retailers investing heavily in fraud prevention at the point of purchase, with widespread adoption of identity verification, authentication and risk-scoring tools.
A critical visibility gap has emerged for retailers. Returns are frequently refunded before physical inspection has taken place, and data sits in silos across ecommerce platforms, stores, and third-party marketplaces, leaving operational teams without a unified view of returns.
