Return Abuse Goes Mainstream

Abuse of product return policies has become a widespread trend, with nearly half of consumers using artificial intelligence when submitting return or refund requests, according to a new study by Riskified.

Riskified, a global leader in e-commerce fraud detection and risk analytics, has released a new global report, “Rethinking Returns,” examining how consumer attitudes and behaviors toward product returns are evolving in the age of artificial intelligence. Commissioned by Riskified and conducted by eTailInsights, the study surveyed 2,091 consumers across seven countries and included in-depth interviews with retail executives.

According to the study, 50% of consumers use generative AI tools such as ChatGPT and Claude to prepare return or refund requests. Retail leaders say shoppers are using AI to create more convincing and precise claims, putting additional pressure on retailers.

At the same time, abuse of return policies is becoming increasingly normalized. Some 46% of consumers consider it acceptable to return an item simply because it looks different from how it appeared online; 42% consider it acceptable to buy multiple sizes or colors with the intention of returning most of them; and 24% consider it acceptable to wear or use an item before returning it for a refund.

Social media also plays an important role, with more than half of consumers encountering return-related content, including so-called “life hacks” and unofficial guides. Overall, 85% consider at least one type of strategic or borderline return behavior acceptable.

In response, many retailers are tightening their return policies by shortening return windows, limiting return reasons, offering store credit instead of cash refunds, and strengthening inspection and quality-control procedures. At the same time, 52% of consumers support stricter return policies, while 56% prefer personalized or tiered approaches rather than a one-size-fits-all policy.

Riskified Chief Marketing Officer Jeff Otto says the rise of generative AI has fundamentally changed the returns landscape. Retailers need differentiated approaches that make the process easier for loyal customers while applying stronger controls to those who abuse return policies.

The report also highlights a global luxury fashion brand using Riskified’s platform to detect fraud and return-policy abuse. According to the company, the approach reduced chargebacks by approximately 75% and increased conversion from 50% to 75–80%. Chargebacks related to rejected returns also fell from about $1 million annually to $150,000–$200,000.

The findings point to a new phase in e-commerce returns, driven by AI-powered risk detection, personalized return policies and greater transparency around return costs. Retailers that can distinguish loyal customers from abusive behavior while maintaining a convenient customer experience are likely to be best positioned for success.