Inside Retail Australia

Return Fraud, Counterfeits and Other Scams: 2025 Was a Banner Year

2025 proved a banner year for retail fraud, with the OECD and EUIPO estimating counterfeit sales near US$467 billion and Liquidonate reporting US$127 billion in fraudulent returns alone. Online returns now outpace in‑store returns three‑to‑one, creating fertile ground for tactics like wardrobing, counterfeit switching, and organized “return‑as‑a‑service” schemes. One‑third of shoppers admit to some return trickery, especially younger consumers, prompting retailers to deploy AI‑driven risk scoring alongside human inspection. Meanwhile, Southeast Asian marketplaces struggle to curb fake goods, drawing regulatory scrutiny from the EU and local governments.