Your customers may be thinking, "What’s the harm in wearing something once and returning it?" But return fraud can have a big impact on a retailer's bottom line. The National Retail Federation estimates that return fraud will cost retailers $2.2 billion in 2016. Return fraud is particularly prevalent after the holidays, when many consumers often return items that were received as gifts without receipts or tags. Retailers estimate that 3.5% of 2016 holiday returns will be fraudulent.