Policy Abuse and Its Impact on Merchants: Global Benchmarks 2023

Groundbreaking new research uncovers the causes, motivations, and impact of policy abuse and fraud – find out how your business compares

September 2023

Inside this groundbreaking research

Lenient return policies and promos have become the gold standard for merchants that want to acquire loyal customers. But these same strategies have opened them up to rampant policy abuse. In fact, Riskified’s groundbreaking data shows that policy abuse costs merchants even more than chargebacks.

For the first time, get a comprehensive look at the alarming scope of policy abuse related to returns, refunds, promotions, and reseller tactics and how it impacts merchants financially and operationally. The pervasive problem of policy abuse means merchants need to acquire a deep understanding of the problem to be able to take action.

Riskified engaged WBR Insights to interview more than 300 merchants worldwide to discover:

  • Causes and motivations behind policy abuse
  • How seasonality and holiday purchasing affect policy abuse
  • How much policy abuse harms merchant profitability
  • The organization-wide toll of policy abuse

More Less
Table of Contents

Executive Summary


01  How Pervasive is Policy Abuse? The Current State

02  What Motivates Customers to Abuse Merchant Policies?

03  How Merchants Address Policy Abuse and Its Impact

04  How Policy Abuse Varies by Region: APAC, EMEA, LATAM, and US

05  Ways Retailers Plan to Address Fraud and Abuse in the Near Term

06  Key Suggestions for Overcoming Policy Abuse