As e-commerce continues to grow, so too does a troubling trend: the surge in post-purchase fraud. From inflated return volumes and false ‘item not received’ claims to first-party chargeback abuse, fulfilment-related fraud has become a major concern for retail fraud teams attending the eCommerce Forum and Smarter Payments Summit. These tactics not only erode margins but also strain customer service teams, supply chains, and reputational equity…
To combat this, leading retailers are shifting their fraud strategies downstream, moving beyond transaction-level risk assessments and into the realm of fulfilment, returns, and dispute resolution.
One of the most effective tools in this fight is behavioural analytics. Rather than relying solely on payment history or device data, advanced systems now analyse post-purchase behaviours, such as order frequency, refund request patterns, and return discrepancies. These insights help retailers identify serial abusers or coordinated fraud rings without penalising legitimate customers. Some platforms also use AI to flag unusual return activity across multiple accounts, even when fraudsters mask their identity.
Another rising trend is the use of automated chargeback management platforms. These tools integrate directly with payment processors and order management systems, allowing fraud teams to generate compelling evidence packages for dispute resolution at scale. With first-party fraud, where genuine customers claim chargebacks for legitimate purchases, on the rise, the ability to respond with clear delivery, usage, and communication logs is essential. Automation also helps manage growing case volumes without increasing headcount.
Retailers are also increasingly investing in returns policy enforcement tools. Dynamic policy engines allow businesses to adjust return conditions based on customer behaviour, rewarding trustworthy buyers with more lenient policies while tightening rules for high-risk profiles. For example, repeat offenders may be asked to cover return shipping costs or face stricter return windows. Transparent communication and policy enforcement strike the right balance between security and customer experience.
Collaboration between departments is also key. Fraud prevention can no longer sit in a silo. Instead, fraud, customer experience, logistics, and legal teams must work together to refine processes and share insights. Some retailers are even creating dedicated ‘post-purchase risk’ units tasked with overseeing returns, chargebacks, and refund abuse across the entire customer journey.
Ultimately, as fraudsters evolve, so too must the response. Retailers that adopt an integrated, data-driven, and customer-sensitive approach to post-purchase fraud will be best positioned to protect their profits while maintaining trust. In 2025, prevention doesn’t stop at checkout, it extends all the way through the final mile and beyond.
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