Retail fraud in the UK rocketed 545% year-on-year in the first six months of 2024, costing UK retailers £5.4 million, according to new data from the National Fraud Intelligence Bureau (NFIB). 

High on the list of recorded thefts are consumers returning stolen items to swap for legitimate ones or switching a price tag before paying, according to payments specialist Dojo. 

Despite more businesses introducing paid returns, there have been over 1,300 reports of retail fraud so far this year, with May witnessing the highest number of reports of retail fraud with 285 cases followed by March (252). 

Limited companies reported the most retail fraud (598) and PLCs reported 259 cases of customers committing retail fraud.

Those limited companies could face more retail fraud due to not having enough budget to invest in fraud detection for staff, said Dojo. Meanwhile its recent survey showed 20% of retail SMEs find technological acceleration challenging. Alongside this, small businesses tend to build closer relationships with customers that fraudsters could take advantage of.

It said one reason for the increase in losses could be due to a huge rise in the viral trend of ‘clothing haul’ videos which have racked up millions of views on social media. This is where consumers will order different sizes of multiple items knowing they’ll send the majority back. 

The behaviour, called bracketing, “can cause significant harm to businesses as it puts a strain on their resources”. 

Naveed Islam, Chief Information Security Officer at Dojo, advises businesses on the best ways to protect themselves from retail fraud includes: strengthening returns policies; investing in staff training; and install CCTV in important areas like entry and exit points around the business.