UK shoppers lead Europe in refund abuse, study finds

UK shoppers are the most likely in Europe to exploit retailers' refund policies, according to research from fraud prevention company Ravelin. The survey found that 37% of UK consumers have engaged in, or are considering, refund abuse.

The study covered 6,282 adults in the UK, Germany and France who had shopped online in the previous six months. It put the UK ahead of France, at 33%, and Germany, at 25%, suggesting a higher reported level of abuse among British online shoppers.

Ravelin uses the term "refundjacking" to describe behaviour such as falsely claiming an order never arrived, returning goods after using them, or sending back empty boxes or substitute items while keeping the original purchase. Across all three markets, 27% of consumers said they had abused refund policies, while 98% of those who try it said they get away with it.

The findings suggest repeat abuse is becoming more common. Nearly two-thirds of refund abusers, or 60%, said they were doing it as often as before or more often than in previous years. In the UK, that figure rose to 69%, compared with 55% in France and 56% in Germany.

Frequent offenders also appeared to make larger gains per claim. Occasional abusers making one claim a year reported average gains of €/£390 per claim, while those making four or more attempts a year reported average gains of €/£491 per claim.

Retail pressure

The British Retail Consortium said the trend is adding to financial strain on retailers already facing pressure on margins. Lost revenue and higher costs linked to abusive refunds can also affect prices and the wider shopping experience, it said.

"The growth of refund abuse is putting unnecessary financial drain on retailers at a time when margins are already under intense pressure. The result is lost revenue and higher costs, meaning everyone ends up paying more. It's a serious problem which requires serious attention. The BRC is working with our members and others to tackle this growing problem," said Chris Owen, policy advisor for finance at the British Retail Consortium.

The survey also indicated that many shoppers recognise the broader effect. Three-quarters of respondents, or 75%, agreed that people who abuse refund policies make online shopping less pleasant or less convenient for honest customers.

AI use

Artificial intelligence is also featuring in the pattern of abuse described in the research. Among those who had engaged in refund abuse, 32% said they had used mainstream AI tools to help obtain a fraudulent refund, including by automating messages to customer service teams or generating false images as evidence.

In the UK, 25% of consumers said they use AI tools to learn techniques and tips for securing fraudulent refunds. That adds a new dimension for retailers, which must now assess not just false claims but also the use of widely available digital tools to support them.

Martin Sweeney, chief executive officer of Ravelin, said the behaviour is being discussed more openly rather than kept hidden.

"This is no longer a fringe behaviour. Our research shows refund abuse becoming more prevalent and normalised. People aren't sneaking around the edges of policy anymore - they're openly breaking the rules, sharing tips on how to cheat the system, and justifying it as fair game. Merchants face a challenge to balance great experiences for good customers, while discouraging or blocking abusive behaviours," said Martin Sweeney, chief executive officer of Ravelin.

Merchant response

The data suggests tougher responses may deter some consumers who engage in abuse or are considering it. Respondents said merchants could persuade them to stop by threatening police action in 21% of cases, banning them entirely in 19%, or directly messaging them about their activity in 18%.

At the same time, the research argues against broad restrictions that affect all customers equally. Tightening return and refund policies across the board may reduce convenience for legitimate shoppers and risk harming customer loyalty, particularly if honest buyers face more friction when seeking legitimate refunds.

Sweeney said retailers should focus on behaviour patterns rather than blanket rules.

"The most efficient response involves using your own data to your advantage. The better a merchant understands the different cohorts of refund abusers, the more they can tailor their approaches to the problem. Blanket rules treat every customer as a risk - and that simply doesn't work anymore. Retailers need to focus on behaviour, intent and patterns over time. When you target abuse more intelligently, you protect revenue without undermining the shopping experience for everyone else - and that's the balance the industry now has to strike," he said.