Refund Abuse
Some customers game your return policy. They wear something for the weekend and return it. They claim defects that don't exist. They swap in a cheaper version. It happens more than you think — the industry loses $24 billion a year to it.
Example
Someone buys a cocktail dress on Thursday, posts photos at a party on Saturday, and initiates a return on Monday. Tags are reattached with a safety pin. You can't resell it as new, but your policy says you have to refund
Why It Matters
Refund fraud — customers who abuse your return policy to get free stuff — costs the average e-commerce store 1-2% of revenue. It's not just organized crime; it's regular customers who learn they can keep the product and get their money back.
Pro Tip
Flag accounts with 3+ refunds in 90 days. Require photo evidence for returns over $50. Most fraud stops when you add friction.
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