Retailers Battle Evolving Fraud Threats at PROTECT 2025
Retailers and consumers are facing an alarming rise in fraudulent activities, with criminals employing sophisticated tactics to exploit vulnerabilities in both physical and digital transactions. The National Retail Federation's PROTECT 2025 event is set to address these challenges, with sessions dedicated to retail fraud and discussions from industry leaders.
One emerging threat is victim-assisted scams, where organized groups persuade consumers to make large purchases that are later returned for cash. Fraudsters are also impersonating legitimate organizations to trick consumers and employees into sending money or gift cards through phishing, smishing, and other methods. Quick change scams involve distracting employees during cash transactions to pay less than the actual amount.
The misuse of stolen credit card data is another concern. Criminals use this data to buy gift cards in bulk, which are then used to purchase goods for resale or returned for cash. In some cases, fraudsters drain gift card balances before consumers can use them, often going unnoticed until the card is redeemed. Additionally, bad actors are abusing the returns process by claiming items never arrived or returning counterfeit or swapped items.
The National Retail Federation has established a Fraud Prevention Professionals Working Group to discuss digital and in-store fraud prevention strategies. At PROTECT 2025, leaders from Walmart, Signet Jewelers, and Meijer will discuss managing the convergence of physical and digital fraud. With various tactics being employed, retailers and consumers must remain vigilant and adopt robust security measures to protect against these evolving threats.
