Fraudulent returns continue to challenge consumer electronics brands, costing the UK an estimated € 13.3 billion in 2023. According to industry reports, 91% of retailers experienced a rise in return fraud last year, with scams ranging from high-value device swaps to empty boxes triggering automated refunds. These cases often bypass overstretched internal systems, making prevention a complex task.
How scammers exploit return processes
Ingram Micro Lifecycle has encountered cases where customers attempted to return non-electronics items such as lasagne sheets, baby wipes, soap, and even a fire grill. Others have sent lower-value devices in trade-ins, such as sending an Apple iPhone X while claiming it was an Apple iPhone 14. While some may be genuine mistakes, many are calculated attempts to exploit refund and trade-in systems.
The role of a returns management partner
A trusted returns management partner combines physical checks, electronic scanning, reporting, courier collaboration, and process improvement advice to stop fraudulent returns before refunds are issued. They quarantine suspicious devices, link orders to returned items through barcode scanning, and maintain detailed case files with photographic evidence for customer service teams.
Why outsourcing beats in-house screening
By outsourcing returns management, brands gain access to specialist infrastructure, trained personnel, and fraud detection technology without the need for costly internal investment. Returns partners liaise directly with couriers, manage warehouse space, and coordinate waste disposal, freeing brands to focus on core operations while ensuring fraud prevention strategies remain proactive and data-driven.
Positive customer interactions still exist
Not all returns or trade-ins are negative experiences. Swedish refurbisher Foxway has shared examples of customer communication that stand in stark contrast to fraudulent attempts. From notes thanking Foxway for excellent service to messages warning of a broken screen, these small acts of honesty and humour show the human side of the secondary device market. They are reminders that while fraud prevention is essential, genuine customers value transparency, good service, and the opportunity to give their devices a second life.
Building trust while preventing losses
Preventing fraud is not only about reducing financial loss but also about maintaining customer trust. By working with experienced partners, brands can safeguard operational efficiency, scale into new markets, and ensure every legitimate return is handled fairly and sustainably.
Market
Trade-in
Repair
Refurbishing
