STORES Magazine - May 2009 - (Page 64)

LPINFORMATION / RETURNS FRAUD Rogues Gallery You never know what you might find in that returned box R A eturns fraud represents an $1 1.8 billion annual criminal enterprise in the United States, according to NRF statistics. SIRAS is a pioneer in POS Electronic Product Registration, a process that enables retailers to control returns, limiting them to only those products truly eligible for return. According to the company, these controls resulted in savings of $150 million for a handful of SIRAS’ top retail clients, and the ROI for those retailers exceeded 10:1. The company has created what it terms the SIRAS Gallery of Retail Fraud to shed light on these criminal acts by sharing some real-life examples of the many — oftentimes creative — ways that criminals take advantage of retailers and manufacturers through the fraudulent return of products. Here are some examples. film camera returned inside a digital camera box is an example of an all-too-familiar “trade-in” scenario: Indi- viduals, tired of their old item, purchase a new one to replace it. They then return the old one in the new item’s box and with the new item’s receipt — in effect getting the new one for free. igital media player boxes have been packed with batteries, playing cards – even a granite tile. These are examples of “brick-in-box” returns whereby thieves carefully repackage the “brick” in the original product carton, shrink-wrap and return it to the retailer as new for a full refund. Sometimes the returns look so convincing, they even end up back on store shelves and are re-sold to unsuspecting customers. The stolen units are commonly sold through online auction sites, to pawn shops, or even shipped overseas. D alk about killing your TV … who knew that tombstones have shapes and weights similar to plasma televisions? T ike nearly every consumer electronics manufacturer, Nintendo has seen an unusual variety of brick-in-box returns fraud. The sardine can returned in a hand-held device box was one of the more humorous ones. 64 STORES / MAY 2009 WWW.STORES.ORG L http://WWW.STORES.ORG

Table of Contents for the Digital Edition of STORES Magazine - May 2009

STORES Magazine - May 2009
Executive Editor's Page
President's Page
Facts to Chew On
What Shoppers Think
Deals "R" Us
10 Things You May Have Missed
Numbers Worth Counting
Full Price/Markdown
Retail People
Cover Story: Brand X Power
Home Improvement
Credit Where Credit's Due
Locate, Locate, Locate
New Playbook
Staying in the Fast Lane
Clean and Green
Driven to Please
Farm System
Rx for Shrink
Zeroing Out Zombies
Rogues Gallery
Ounce of Prevention
Loeb Retail Letter
Chain Action
Optimism Rocks
ARTS Update
Point of View
Retail Crossword
Retail Industry Calendar
End Cap

STORES Magazine - May 2009