A fifth admit to retail refund fraud or knowing someone who has, Cifas warns

• 17% of UK adults don’t think it’s illegal to fraudulently claim a retail refund 

• Younger shoppers are ‘more likely’ to commit first party fraud 

• Despite misconceptions, retail fraud is not a victimless crime 

New research from leading fraud prevention service Cifas reveals that 19% of UK consumers have either falsely claimed a failed delivery or know someone who has – often to get a refund after using the product. The findings highlight a worrying surge in opportunistic fraud that is hitting retailers hard. 

With 80% of UK shoppers now buying online, the stakes are high: the retail sector is already losing over £11 billion annually to payment fraud. 

The Cifas survey of 2,000 UK adults also exposes worrying attitudes among consumers: 

• 17% did not believe it was illegal to falsely claim non-delivery 

• 6% felt this type of fraud was ‘reasonable’ 

• A striking 35% of 16–24-year-olds admitted they’d be willing to lie to get a refund 

Known as ‘first-party fraud’ – when someone knowingly misrepresents their identity or provides false information for financial or material gain – Cifas is urging consumers to think about the consequences and wider implications of dishonestly requesting refunds.  

Mike Haley, CEO of Cifas, said: ‘Every purchase is an agreement built on trust between the retailer and consumer. Breaking that by falsely claiming a package never arrived is first-party fraud – it’s not harmless, and it’s not victimless. 

‘This type of deception costs the UK economy billions, puts pressure on honest retail businesses, and undermines confidence in online shopping. 

‘Individuals who are caught face serious consequences such as criminal charges, hefty fines, and a criminal record that can damage their futures. For retailers, robust fraud prevention measures mean these deceptive practices don’t become even more socially accepted.’ 

Just under half (48%) of respondents said it was ‘reasonable’ to commit first party fraud. Discover more from the Cifas Fraud Behaviours Survey. 

By using Cifas’ products and services including its cutting-edge tool, Vision, retailers can better detect potential fraud in their current customer base. Vision delivers real-time alerts, enabling organisations to spot unusual changes in customer behaviour early and take swift action to reduce the risk of fraud losses. Learn more. 

ENDS 

Notes to Editors 

For more information, please contact Hayley Paterson, Cifas Press and PR Manager, on 020 4551 7072 or press@cifas.org.uk. 

Survey methodology 

The survey was carried out by Opinion Matters on behalf of Cifas with a nationally representative sample of 2,000 UK people between 22-28 May 2024. 

About Cifas 

Cifas is the UK’s leading not-for-profit fraud prevention service with over 775 members from across key economic sectors including banking, retail, insurance, and telecoms. Cifas protects businesses and individuals from fraud through the sharing of data and intelligence sharing between the private, public and third sectors. In addition to providing products and services which help businesses prevent more than £1.8bn in fraud losses each year, Cifas delivers specialist training through its Cifas Fraud and Cyber Academy and Digital Learning programme. 

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About Opinion Matters 

Opinion Matters is an independent market research agency that create bespoke market research solutions for businesses, organisations, and agencies worldwide.  Opinion Matters abides by and employs members of the Market Research Society which is based on the ESOMAR principles. 

Contact us at press@cifas.org.uk