According to the National Retail Federation’s 2012 Return Fraud Survey, completed by loss prevention executives at 60 retail companies, the industry lost an estimated $8.9 billion to return fraud last year.
The Retail Equation (TRE) is contracted by many retailers to authorize returns. TRE’s Verify Return Authorization System is designed to identify the 1 percent of consumers whose behaviors mimic return fraud or abuse. It is used by 11 of the Top 50 retailers in the US and 6 retailers in the Fortune 500. Overall, it is used by over 27,000 stores.