Home > Crimes > Refund Fraud > Preventing Refund FraudPreventing Refund FraudThere are several ways that businesses can reduce their risk of refund fraud. These methods will decrease the opportunities that offenders have to commit refund fraud and will likely result in increased customer satisfaction by laying out refund procedures in advance. |
| HOW CAN I PREVENT REFUND FRAUD IN MY BUSINESS?
1. Let your customers know that proof of purchase is required if they want to return the item for a refund at a later date. You can do this by having a clear note to this effect posted by the cash register and printed on the sales receipt. Encourage customers to keep their receipts until the possibility of a refund has passed. 2. Require that the customer present their proof of purchase when the refund is requested. 3. If the customer cannot provide proof of purchase when requesting a refund, require them to show proof of identity. Also have the customer sign a statement written in their own handwriting detailing their identity, address and purchase details. 4. Cash refunds should only be made if the customer can prove that the item was originally paid for in cash 5. Cash refunds should not exceed a specified value set in advance by the retailer. Any refunds greater than this amount should be refunded by check. 6. If the original purchase was made with a check, do not process any refunds until the original check has cleared. |