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5 Most Common Types of E-commerce Return Fraud and How to Spot Them

Mar 07, 2026 5 min read Return Fraud, Security, Warehouse
5 Most Common Types of E-commerce Return Fraud and How to Spot Them

Return fraud is a growing menace in the e-commerce industry, costing sellers billions of rupees every year. Understanding the tactics used by fraudulent buyers is the first step toward protecting your business.

1. The Empty Box Fraud

In this scenario, a buyer claims they received an empty box or a box filled with paper/stones. Without video evidence of the packing process showing the actual item being placed inside and sealed, it's your word against theirs.

2. The Switcheroo (Product Swapping)

The buyer orders an expensive item (like a high-end smartphone) and initiates a return. However, they send back an old, broken, or different model inside the original box. VMS Guru helps you record the unboxing of these returns to catch the swap on camera.

3. Wardrobing

Common in fashion, "wardrobing" involves buying an outfit for a single event, wearing it, and then returning it as "unused." Inspecting returns under high-definition cameras can help you spot signs of wear that regular photos might miss.

"A robust video evidence system can reduce return fraud by up to 80% by acting as both a deterrent and a proof source."

4. Claiming "Damaged on Arrival"

Buyers sometimes damage an item themselves and then claim it arrived broken to get a refund. Recording the final sealing of the package proves the item left your warehouse in perfect condition.

5. False Shortage Claims

Claiming that only part of the order was received. If you have video proof showing all items being scanned and packed into the same box, these claims become easy to dispute.

Protect your revenue today by implementing a robust Video Management System like VMS Guru.

Written by VMS Guru Experts

Our mission is to empower e-commerce sellers with the best video evidence technology to stop fraud and scale their business with confidence.