What is return fraud?  Return fraud is when someone purchases an item, uses it and then returns it even though there is nothing wrong with it.  Return fraud is also when an individual steals an item and returns it thereby creating a profit for themselves. These two examples of “return fraud” can be detrimental to a business if it is not controlled.  In order to cut down on return fraud, make sure you have a solid system in place for your employees. Require that the customers bring in a receipt and/or only give them store credit. Keep the customers happy so that they are repeat customers but also make sure your business is protected.