Returns abuse is a real and growing problem — and by the way, I’d argue that it’s theft, not abuse. There’s one sneaky trick that’s making it even more appealing to cheating customers, and it’s flying under the radar for most merchants. I’m talking about double-dipping.
Rampaging Returns Abuse
In Forter’s recent consumer survey, 52% U.K. consumers and 45% U.S. consumers admitted to policy abuse in the last 12 months. Personally, I’d be willing to bet that the real number is even larger, because not everyone is honest enough to admit it.
Returns are a big part of this abusive behavior, and it comes in a variety of flavors. 30% admit to wardrobing — buying something to wear or use once, then returning it. 21% over-order for free shipping, then return the extras. And 18% effectively use bulk purchasing to try before they buy.
Unless retailers change their approach, this problem is likely to continue. In fact, 68% of consumers said that merchants make it easy to abuse their return policies, which might be part of the reason they keep doing it. That and GenAI making cheating easier than ever.
More & More Items “Not Received”
A favorite option for abusers is to claim that they never received the package. That way, they get to keep the goods for free. INR claims increased 30% YoY from 2023 through 2025, driven by physical goods.
That’s a massive uptick in a trend that wasn’t tiny to start with. Retailers can’t afford to treat this as a minor logistical issue or a hidden cost of customer service. This is theft, and it’s operating at scale.
Double-Dipping Fraud Doesn’t Help
As if it isn’t outrageous enough to have customers lying about their order and getting to keep a perfectly good item without paying for it, double-dipping really takes the cake. With this form of abuse, the user doesn’t just put in a claim for a refund with the retailer; they submit a chargeback to their bank for the order as well.
Double-dipping was becoming a problem back in 2023, when I wrote about it for the first time. But since then it hasn’t just stuck around. It’s grown. If you’re in ticketing, events, or QSRs, you’re likely seeing this type of abuse rise swiftly.
In those industries, double dipping rose 50% this year vs. last year. Whether customers are feeling economically insecure or are just jumping on a new loophole, that’s appalling and can’t be ignored.
Double-dipping is also becoming more significant in terms of its presence in claims analysis in those industries. It’s reached the point where it represents around 10% of the claims, which is a clear indication that this is no longer something that anyone in ticketing or QSRs can ignore.
Detecting & Preventing Double-Dipping Fraud
Double-dipping is a real and growing problem, and the more popular it gets in its kickoff verticals, the more likely it is to spread to other industries. The good news is, merchants don’t need to stand for it. And they shouldn’t.
The data you need to protect your business from losing out significantly to this trend is all in your hands already. You have a wealth of data about your customers’ past buying history, habits, and behaviors. You know who cheats often, who cheats sometimes, and who double-dips. You just need to start acting on that information.
Customize your checkout process so that good customers get the best offers, flexible policies, and excellent service. Abusers can still check out, but with the knowledge that they won’t be allowed a refund, and can’t take advantage of your returns system. Make CLTV your guiding star.
This is a problem that merchants can solve. All it takes is the decision to do something.