These patient problem-solvers are the first to face the heat when orders are delayed, products fall short of expectations, or the inevitable “Where’s my refund?” inquiries roll in. Their work doesn’t just shape the customer’s opinions of a brand — it can also make or break a merchant’s bottom line.

Refund abuse, flagged by MRC as the top fraud threat for merchants in 2025, often lands squarely on the shoulders of these teams. From false claims of nonreceipt (“INR” claims) to habitual returns of worn items (a practice known as “wardrobing”), these teams handle frontline interactions whose patterns should inform your fraud prevention strategies and improve the overall consumer journey.

By working together and empowering one another with tools and insights, fraud and CX teams can protect the business while delivering exceptional customer experiences this holiday season and beyond.

The undeniable interlinking with fraud management

The connection between a company’s fraud controls and the effectiveness of its customer-facing teams is a fact. How a merchant handles returns and refunds directly affects customer satisfaction, and consumers aren’t shy about shopping elsewhere when faced with restrictive return policies. On the flip side, overly lenient policies open the door to abusers, quickly overwhelming teams with claims.

Rigid internal rules can hinder manual claim reviews, making the process more time-consuming and costly for merchants and ultimately, frustrating for customers. Automating refunds for low-risk returns can be a game-changer, saving time, reducing costs, and enhancing the customer experience.

A 2025 Riskified global consumer survey found that some customers prefer using AI-enabled options for tasks such as checking order status and initiating returns:

CONSUMERS’ PREFERENCE FOR RESOLVING CS TASKS WITH AN AI AGENT RATHER THAN A HUMAN

But this is only an option if you have the right technology in place.

Room for expanded intelligence and automation in CX success

To make decisions accurately and quickly, customer-facing teams need the ability to identify abuse patterns in real-time and route claims efficiently and accurately. This is where automation shines, taking on repetitive tasks and freeing up human teams to focus on delivering exceptional service.

However, many teams still rely on outdated methods, such as basic linking logic that flags all orders tied to a single shipping address, for example. These systems are no match for savvy fraudsters who obfuscate addresses to slip through the cracks.

In the ideal scenario, CX teams can expedite refunds for good customers while rejecting those with malicious intent. Here’s what else should be on your CX team’s wishlist:

  • Front-line agents have data that helps them make decisions faster, slashing the time required for each ticket.
  • Technology instantly and accurately auto-approves or auto-rejects claims.
  • Good customers can count on fast claim-response time, which can boost repurchase rates even among customers who file a refund claim.
  • Systems in place identify refund abuse using deeper signals than conventional systems and then provide transparent, explainable decisions with full audit trails.

Fraud managers and customer-facing teams: A shared mission

Fraud managers and CX teams are united by a common goal: protecting the business while delivering exceptional customer experiences. A new approach to refund management can do more than protect profits; it can also empower your teams to focus on what they do best: delivering exceptional service and building customer loyalty. With the right tools and training, fraud leaders can protect CX teams from social engineering attacks, mitigate the financial impact of abuse, and ensure a seamless experience for honest customers.

As the holiday sales season approaches — and the inevitable “Returnuary” chaos that follows — remember the critical role all of your teams play.

Read our guide, Enhancing customer experience while combating refund fraud, for an update on the refund fraud epidemic, action plans for managing it, and proven methods to deliver faster, more personalized return and refund processes that foster trust and deter misuse.