| Many of us may think that returning goods from a | | | | notes the product sold. He then notes that the |
| store is not illegal, but apparently if one returns goods | | | | product was 'returned'. He pockets the so-called |
| one too many times then it may be considered a | | | | refund money. The balance sheets balance out but |
| crime. This crime has been known as refund scam, | | | | the retailer would be missing some products. Refund |
| refund theft or refund fraud. One may consider it as | | | | scammers also target big companies such as |
| related to shoplifting. According to Webster's | | | | Wal-Mart. The criminal buys an expensive product. His |
| dictionary, the word refund means "to give or put | | | | partner then goes back to the store with the receipt |
| back" or "to return (money) in restitution, repayment, | | | | and gets another item identical to the one bought |
| or balancing of accounts" whereas the word scam | | | | earlier. The partner leaves with the second product |
| means "a fraudulent or deceptive act or operation" or | | | | and tries to return it to another store thereby |
| to "deprive of by deceit". What is refund scam and | | | | profiting from the scam and keeping the expensive |
| how is it committed? | | | | product. Some scammers switch UPC's (Universal |
| The crime has been said to be committed by giving | | | | Product Code). They switch the UPC of a cheap |
| back to the retailer items or goods in exchange for | | | | product and place it on an expensive product. They |
| money, other goods or shopping credits. It was | | | | then buy the product, at a lesser cost, and return it |
| placed in the limelight when President Bush's own | | | | later on for refund of its actual price. |
| personal adviser, Claude Allen, was apprehended for | | | | PREVENTING REFUND FRAUD |
| stealing up to $5,000. | | | | Refund scams may be prevalent but retailers have |
| Less common scams are when criminals buy products | | | | taken measures to prevent this crime and discourage |
| at a lesser price in a sale but return the item and | | | | future scammers. One of the more popular |
| refund for a full price from other stores or at a later | | | | prevention method used by retailers is the use of |
| date. Thieves also sometimes scavenge for broken | | | | databases that records the sales and returns made |
| or defective products from the garbage and return | | | | by the customers. A customer that has exceeded a |
| them to retailers for refund. Sometimes they | | | | certain number of returns will be recorded and the |
| intentionally look for receipts in the trash and go to | | | | past security cameras will be reviewed to determine |
| the store, pick out the products listed in the receipt | | | | whether that customer has committed any previous |
| and return them for full refund. Other times it is the | | | | theft. |
| cashier that does the 'return'. After a sale, the cashier | | | | |