Refund theft
Encyclopedia
Refund theft, also known as refund fraud, refund scam or whitehouse scam, is crime
which involves returning goods to a retailer in exchange for money or other goods.The goods returned may be stolen, or they may be damaged goods recovered from a dumpster. The return provides cash or an exchange for more desirable items. Other schemes involve sealing weights or other simulated merchandise in the original product packaging, or switching labels on items to purchase them at a lower price and then returning them for their original value.
Frequent returns
Many stores will automatically flag a customer who returns over a certain number of items within a set amount of time. Footage of the flagged customer is reviewed by the Loss Prevention
department, who will memorize the suspect's appearance and check to see if any thefts have been captured on video.
Section limit
In order to combat theft, in instances where store credit is given without a receipt, the credit can be "section limited". For example, if someone returns children's clothing without a receipt, they will get a credit that can only be used for children's clothing.
Serial number
Some stores apply unique serial numbers to their items, embedded into the bar code or hidden elsewhere. If a serial number on an item to be returned does not match the serial number on the receipt, the store can refuse the refund. This technique is often applied to DVDs and video games, not only to prevent piracy but to prevent customers from simply obtaining a refund using a receipt and a similar item picked up in the store.
Crime
Crime is the breach of rules or laws for which some governing authority can ultimately prescribe a conviction...
which involves returning goods to a retailer in exchange for money or other goods.The goods returned may be stolen, or they may be damaged goods recovered from a dumpster. The return provides cash or an exchange for more desirable items. Other schemes involve sealing weights or other simulated merchandise in the original product packaging, or switching labels on items to purchase them at a lower price and then returning them for their original value.
Combating refund theft
While a popular scam in the past, refund theft has become more difficult to accomplish due to digitalization and the ability of stores to easily keep databases of all sales and refunds.Frequent returns
Many stores will automatically flag a customer who returns over a certain number of items within a set amount of time. Footage of the flagged customer is reviewed by the Loss Prevention
Loss prevention
Retail loss prevention is a form of private investigation into larceny or theft. The focus of such investigations generally includes shoplifting, package pilferage, embezzlement, credit fraud, and check fraud...
department, who will memorize the suspect's appearance and check to see if any thefts have been captured on video.
Section limit
In order to combat theft, in instances where store credit is given without a receipt, the credit can be "section limited". For example, if someone returns children's clothing without a receipt, they will get a credit that can only be used for children's clothing.
Serial number
Some stores apply unique serial numbers to their items, embedded into the bar code or hidden elsewhere. If a serial number on an item to be returned does not match the serial number on the receipt, the store can refuse the refund. This technique is often applied to DVDs and video games, not only to prevent piracy but to prevent customers from simply obtaining a refund using a receipt and a similar item picked up in the store.