Preparing Policies for a Post-Holiday Rush – Forter

Published:
December 13, 2024

Reading time:
2 minute read

Written by:
Forter Team

With the holidays in full swing, you’ve decked the halls (and policies) to safeguard against fraud and abuse. But as the last string of lights comes down, the policy grinches don’t pack up and go home — in fact, they may become even more determined as the post-holiday returns and exchanges roll in.

Why Prepare Policies for the Post-Holiday Rush?

As holiday cheer fades, the retail landscape transforms into a high-stakes game. To protect your bottom line without alienating loyal shoppers, it’s crucial to understand how these post-holiday challenges manifest and implement strategies that balance security with exceptional customer experiences.

Returns: The post-holiday rush sees a surge in returns from both legitimate shoppers and policy abusers. Among these, wardrobing — returning items after use — stands out as a prevalent form of abuse. In fact, one in four holiday shoppers in the U.S. admitted to purchasing items with the intent to wardrobe in 2023, highlighting how this common practice can impact retailers’ bottom lines.

Gift Cards: Every holiday season, consumers spend billions on digital gift cards, with most recipients using them once the holidays are over. However, gift cards are also an easy target for fraudsters looking to hack those gift cards using account takeover attacks (ATO), draining the balances, or selling the accounts on the dark web. Fraudsters love gift cards because they’re digital, instant, anonymous, versatile, and easy to resell.   

Shipping: Orders don’t stop once the holidays are over, nor does shipping-related policy abuse. Retailers face item-not-received (INR) abuse and address manipulation during and after the holidays. Some fraudsters hack into online accounts to change the shipping address to get free goods with little effort. Policy abusers and legitimate customers may claim items were not received during the post-holiday rush to avoid paying for them.

Double-Dipping: Often, the post-holiday rush brings out the double-dippers — customers who submit a chargeback for a purchase while also requesting a refund from the retailer. During the holiday season and after, retailers see many legitimate customers abuse the chargeback system for profit. 

The post-holiday rush brings out more typical consumers and policy abusers. Think about how your policies will impact all your customers. Come up with approaches that curb policy abuse but provide excellent shopping experiences for legitimate customers. 

Aim for Balanced Policies

Retailers must proactively design and enforce policies that effectively address policy abuse during and after the holiday season. 

However, it is equally important to ensure these measures don’t alienate loyal customers. Following the 2023 holiday shopping season, an overwhelming 70% of U.S. consumers noted they would stop shopping with a brand if its policies became overly complicated.

Beyond these top priorities, consumers also evaluate factors like enhanced security, seamless checkout experiences, and flexible payment options when choosing a brand.

As you prepare your policies for the post-holiday season, ensure they foster trust, protect against abuse, and support a positive shopping experience. Because at the end of the day, building trust isn’t just good for your customers — it’s essential for your bottom line.