Wardrobing is a type of return fraud where customers purchase items with the intention of using them temporarily before returning them for a full refund. This practice is particularly common with clothing and accessories but extends to other retail categories.
Common Characteristics
- Short-term usage intention
- Careful item preservation
- Planned returns
- Tag retention
- Original packaging maintenance
- Targets high-value items
Frequently Targeted Items
- Formal wear and designer clothing
- Electronics and gadgets
- Seasonal items
- Luxury accessories
- High-end equipment
Detection Methods
- Return pattern monitoring
- Purchase timing analysis
- Customer history tracking
- Condition verification
- Documentation inspection
Prevention Strategies
- Clear return policies
- Item condition verification
- Time limitations
- Documentation requirements
- Staff training
- Customer education
Impact
- Revenue and inventory losses
- Processing costs
- Customer trust issues
- Increased prices
- Stricter return policies
Wardrobing poses significant challenges for retailers, requiring balanced policies that protect against fraud while maintaining customer satisfaction.