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Retailers — already hard-hit by rampant shoplifting — are facing another threat to their bottom line from scammers who are stuffing bricks, fake receipts and counterfeit goods in return packages.

The fraudsters have targeted this retail underbelly to swipe billions of dollars by gaming the returns system, especially after the holiday season, according to a Wall Street Journal report. 

More than $100 billion worth of goods was returned fraudulently in the US last year, which represented  13.7% of the returned goods retailers received — twice the level of fake returns in 2020, according to the National Retail Federation. 

This year, the NRF is expecting fraudulent returns to reach 17% of all returned items. 

Some people are sending back a box of bricks instead of a television set or returning a lower-priced item and slapping a higher priced tag on it, Gartner analyst Tom Enright told the Journal.

The brazen scammers are betting they can get a refund for mailing back a package as soon as the return shipping label is scanned by a delivery service and before the retailer can confirm the correct item is inside the box, industry experts told the publication.

Returned items are typically shipped to a warehouse, where the package may not be opened for several days.

Others are shipping counterfeit goods back to luxury retailers, hoping that theyll get a refund before the merchandise is tagged as fake. 

This type of fraud is definitely becoming more and more of a concern to retailers, Amena Ali, chief executive of Optoro, a return service provider, told The Journal.

Part of the problem is that during the peak holiday season retailers rely on temporary staff, who may not be thoroughly trained to detect fraud, according to the report.

Some of the returned goods were items that were stolen from other stores, a thorny problem for big chains like Target and Dick’s that have called out organized retail theft as one of the biggest challenges they face.

Another common return fraud is called wardrobing, which involves sending a product back after its been used, according to the trade group. 

Retailers have attempted to crack down on returns by charging fees, but that doesn’t serve as much of a deterrent against the newfangled scams.

Instead, the retailers are pushing more shoppers to bring their returns to the stores.

In-store returns seem to lead to much, much, much lower fraud than mail-in returns, Thomas Borders, a manager for for returns-service provider Inmar Intelligence, told the Journal. 

Another returns-service provider, Pollen Returns, inspects merchandise that customers have left on their doorstep to send back — making it harder to pass off used goods as new for a refund, said Christian Piller, the companys chief commercial officer,. 

If the package was supposed to contain a new pair of loafers and you put out your old New Balance shoes that you use to mow the lawn for five years … you cant conceal this inside of a box like you could for the traditional returns process, he told the Journal.

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Sports

Canes’ Andersen, 35, secures deal before Round 2

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Canes' Andersen, 35, secures deal before Round 2

RALEIGH, N.C. — The Carolina Hurricanes have signed goaltender Frederik Andersen to a one-year contract for next season, worth $2.75 million for the 35-year-old veteran.

General manager Eric Tulsky announced the deal Saturday, a little over 48 hours before his team starts the second round of the playoffs against the Washington Capitals.

Andersen could earn up to $750,000 in incentives for games played and his participation in a potential run to the Eastern Conference finals next season. He would get $250,000 for playing 35 or more games, another $250,000 for getting to 40 and $250,000 if the Hurricanes reach the East finals and he plays in at least half of the playoff games.

“Frederik has played extremely well for us and ranks in the top 10 all-time for winning percentage by an NHL goalie,” Tulsky said. “We’re excited that he will be staying with the team for next season.”

Andersen and the Hurricanes, the No. 2 seed in the Metropolitan Division, advanced past the New Jersey Devils in Round 1 last week. They will meet the Capitals, who won the division crown, for the right to make the NHL’s final four.

Extending Andersen could give the team a goaltending tandem with Pyotr Kochetkov for less than $6 million combined.

Anderson, a Denmark native who previously played for the Anaheim Ducks and Toronto Maple Leafs, has become coach Rod Brind’Amour’s most trusted option in net. He is expected to return to the starting role for Game 1 of the Capitals series after getting injured in the first round against New Jersey.

The Associated Press contributed to this report.

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UK

Child sexual abuse victims ‘denied justice’ after compensation scheme scrapped over cost

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Child sexual abuse victims 'denied justice' after compensation scheme scrapped over cost

Sky News can reveal that the government has rowed back on a national compensation scheme for victims of child sexual abuse, despite it being promised under the previous Conservative administration.

Warning – this story contains references to sexual and physical abuse

A National Redress Scheme was one of 20 key recommendations made by the Independent Inquiry into Child Sexual Abuse (IICSA), but a Home Office report reveals the government has scrapped it because of the cost.

Marie, who is 71, suffered alleged sexual, physical, and emotional abuse at Greenfield House Convent in St Helens, Merseyside, between 1959 and 1962, and is still fighting for compensation.

Greenfield House Convent, where Marie says she was abused
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Greenfield House Convent, where Marie says she was abused

As soon as she arrived as a six-year-old, Marie says her hair was cut off, her name changed, and she experienced regular beatings from the nuns and students.

She claims a nun instigated the violence, including when Marie was held down so that her legs were “spread-eagled” as she was sexually abused with a coat hanger.

Merseyside Police investigated claims of abuse at the convent, but in 2016, a suspect died before charges could be brought.

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Marie has received an apology from the Catholic body that ran the home; she tried to sue them, but her claim was rejected because it was filed too long after the alleged abuse.

Marie is still fighting for compensation for the abuse she suffered
Image:
Marie, 71, is still fighting for compensation for the abuse she says she suffered as a child

In February, ministers said the law would change for victims of sexual abuse trying to sue institutions for damages, which was a recommendation from the IICSA.

Previously, people had to make a civil claim before they were 21, unless the victim could prove a fair trial could proceed despite the time lapse.

Campaigners argued for the time limit to be removed as, on average, victims wait 26 years to come forward. Changes to the 1980 Limitation Act could lead to more people making claims.

Peter Garsden, President of The Association of Child Abuse Lawyers
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Peter Garsden, President of The Association of Child Abuse Lawyers

Civil cases ‘can take three to five years’

But Peter Garsden, president of the Association of Child Abuse Lawyers, worries that when it comes to historical abuse where the defendant is dead, institutions will still argue that it is impossible to have a fair trial and will fight to have the case thrown out of court.

Mr Garsden said it takes “between three and five years” for a civil case to get to trial.

He warned that claimants “can end up losing if you go through that process. Whereas the Redress Scheme would be quicker, much more straightforward, and much more likely to give justice to the victims”.

Victim awarded £10 compensation

Jimbo, who was a victim of abuse at St Aidan’s children’s home in Cheshire, took his case to the High Court twice and the Court of Appeal three times, but, after 13 years, all he ended up with was £10 for his bus fare to court.

Despite the Lord Justice of Appeal saying he believed that the abuse had occurred, Jimbo lost his claim because of the time limit for child sexual abuse claims to be made.

Read more from Sky News:
Call for Labour minister to resign over grooming gang remarks
PM says govt will fund further local grooming gangs inquiries if ‘needed’

Neither Marie nor Jimbo is likely to benefit from the removal of the time limit for personal injury claims, which is why Mr Garsden is calling on the government to implement a National Redress Scheme for victims of sexual abuse, as recommended by the IICSA.

Hundreds of millions paid to victims

The governments in Scotland and Northern Ireland have set up compensation schemes and paid hundreds of millions of pounds to victims.

In 2023, the then Conservative government said a similar scheme would be organised for England and Wales.

But the Home Office admitted in its Tackling Child Sexual Abuse: Progress Update that it “is not currently taking forward any further steps on the IICSA proposal for a separate, national financial redress scheme for all survivors of child sexual abuse”.

“In the current fiscal environment, this recommendation is very difficult to take forward,” it added.

For victims, the scheme was the last chance of compensation for a lifetime blighted by abuse.

“The money is about justice and about all the other people who have had to suffer this abuse,” Marie said.

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Politics

OKX fires back at Tron’s Justin Sun over mysterious ‘freeze notice’

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<div>OKX fires back at Tron's Justin Sun over mysterious 'freeze notice'</div>

<div>OKX fires back at Tron's Justin Sun over mysterious 'freeze notice'</div>

OKX founder and CEO Star Xu has publicly defended the crypto exchange after Tron founder Justin Sun accused it of failing to act on a law enforcement request to freeze stolen funds following a recent hack of Tron’s official X account.

“OKX also has consumers protection policy according to law, we can’t freeze a customer’s funds according to your personal X post or an oral communication. I think you should understand it as the CEO of HTX,” Xu said in an X post.

OKX says there is no communication in the spam box, either

Xu said that the crypto exchange had not received any related correspondence through OKX’s official channels. “Our LE cooperation team just checked the email, including the spam box; we haven’t received any request related with this case,” Xu said.

Cryptocurrencies, Tron, OKX
Source: Star Xu

In what is now an unavailable X post, but was screenshotted by Xu, Sun had earlier claimed that OKX has not responded to a “freeze notice” sent to its official email address from a “relevant law enforcement agency.” Sun said that he had no other way to contact OKX’s compliance department.

“These stolen funds do not belong to me; I’m acting to protect the community,” Sun said. On May 3, Tron DAO told its 1.7 million X followers that its account had been compromised. Tron explained that during the breach, an unauthorized party posted a malicious contract address, sent direct messages, and followed unfamiliar accounts.

“If you received a DM from our account on May 2, please delete it and consider it the work of the attacker.”

In response to Sun’s claims of inaction, Xu publicly called on him to provide a screenshot showing when and where the law enforcement request was made.

The Tron incident is one of several recent security breaches involving high-profile crypto accounts on X.

Related: Over 14,500 Tron addresses at risk of silent hijacking

Kaito AI, an artificial intelligence-powered platform that aggregates crypto data to provide market analysis for users, and its founder, Yu Hu, were the victims of an X social media hack on March 15. The hackers opened up a short position on KAITO tokens before posting that the Kaito wallets were compromised and advised users that their funds were not safe.

The Pump.fun X account was compromised on Feb. 26 to promote a fake governance token called “PUMP” and other fraudulent coins.

Meanwhile, the X account of UK member of Parliament and Leader of the House of Commons, Lucy Powell, was hacked to promote a scam crypto token.

Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

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