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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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World

Ukraine is turning warfare into a sci-fi battle of machines – and the West has work to do

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Ukraine is turning warfare into a sci-fi battle of machines - and the West has work to do

Ukrainians say they are in danger of losing the drone arms race with Russia and need more help.

And that is worrying not just for Ukraine, because the drone is becoming the likely weapon of choice in other future conflicts.

Sky News has been given exclusive access to a Ukrainian drone factory to watch its start up ingenuity at work. Ukrainians have turned the drone into their most effective weapon against the invaders.

But they are now, we are told, losing the upper hand in the skies over Ukraine.

General Cherry Drones was started by volunteers at the beginning of the war, making a 100 a month, but is now producing 1,000 times that. The company’s Andriy Lavrenovych said it is never enough.

Andriy Lavrenovych
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Andriy Lavrenovych

“The Russians have a lot of troops, a lot of vehicles and our soldiers every day tell us we need more, we need more weapons, we need better, we need faster, we need higher.”

The comments echo the words of Ukraine’s leader, President Volodymyr Zelenskyy, who told reporters this week “the Russians have increased the number of drones, while due to a lack of funding, we have not yet been able to scale up.”

The factory’s location is a closely-guarded secret, moved often. Russia strikes weapons factories when it can.

In a nondescript office building we watched drones being assembled and stacked in their thousands. Put together like toys, they are hand assembled and customised.

The quadcopters vary in size, some carry explosives to attack the enemy. Others fly as high as six kilometres to ambush Russian surveillance drones.

A combat drone is prepared by a Ukrainian soldier in the frontline town of Chasiv Yar. Pic:24th King Danylo Separate Brigade/Reuters
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A combat drone is prepared by a Ukrainian soldier in the frontline town of Chasiv Yar. Pic:24th King Danylo Separate Brigade/Reuters

A $1,000 (£743) Ukrainian drone can bring down an enemy aircraft worth 300 times as much.

Downstairs each drone is tested before it’s sent to the front. Nineteen-year-old Dima – not his real name – used to play with drones at home before it was occupied in Kherson Oblast.

Now he works here using his skills to check the drones are fit for battle.

But Russia is catching up. Sinister propaganda released this week filmed at one of its vast new drone factories shows hundreds of Geranium delta wing attack drones lined up ready to be launched at Ukraine.

Russia has refined the technology provided by Iranians to produce faster, more lethal versions of their Shahed drones. They have wreaked havoc and carnage, coming in their hundreds every night and killing scores of civilians. Ukraine expects 1,000 a night in the months ahead.

Russia is using scale and quantity to turn the tables on Ukrainians. And it is mastering drones controlled by fibre optic thread, trailing in their wake, that cannot be jammed.

Read more:
Trump sets red line on Ukraine peace deal support
What would US-backed security guarantees look like?

Oleksandr "Drakar", head of new product development
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Oleksandr “Drakar”, head of new product development

Oleksandr “Drakar”, head of new product development, showed us his company’s prototype fibre optic model. It is more effective than the Russians, he told us, but added: “The Russians began using the technology earlier and have scaled up production.

“They’ve had considerable help from the Chinese – entire factories there are under contract to supply fibre exclusively to Russia, producing it in vast quantities.”

Russia’s Chinese allies, who claim to be neutral in this conflict, are also throttling the supply of microchips and other parts vital to drone production. The West is not doing enough, say Ukrainians, to counterbalance the threat.

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Is NATO ready for drone war?

It is a constant race to beat the other side, innovation met by more innovation. This conflict is revolutionising warfare into a sci-fi battle of machines.

Ukrainians say 80% of battlefield strikes are now carried out by drones.

Whoever has the upper hand with them in this conflict is likely to have the edge in future wars. If the West wants to be on the winning side, it will need to give Zelenskyy and his drone start-up companies more help to maintain their edge.

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UK

Migrants to be deported to France ‘within weeks’ – as Farage vows to scrap human rights law

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Migrants to be deported to France 'within weeks' - as Farage vows to scrap human rights law

Nigel Farage has said he would scrap the UK’s human rights law to enable the mass deportation of illegal migrants, as the government reportedly prepares to send more than 100 small boat arrivals back to France.

Writing in The Daily Telegraph ahead of a speech later today, the Reform leader said the Human Rights Act would be ripped up should he become prime minister.

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He would also take the country out of the European Convention on Human Rights (ECHR) and other international treaties, describing them as “malign influences” which had been “allowed to frustrate deportations”.

Pulling Britain out of the ECHR would make it one of only three European countries not signed up – the others being Russia and Belarus.

The UK’s Human Rights Act, Reform say, would be replaced by a British Bill of Rights. This would only apply to British citizens and those with a legal right to live in the UK.

Small boat arrivals would have no right to claim asylum. They would be housed at old military bases before being deported to their country of origin, or third countries like Rwanda.

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Will Starmer’s migration tough talk deliver?

One in, one out

Sir Keir Starmer, meanwhile, is said to be ready to implement one of his major policies to tackle the small boats crisis within weeks.

According to The Times, the one in, one out migrant deal he signed with France’s Emmanuel Macron earlier this summer will soon see more than 100 people sent back.

The newspaper reported there are dozens of migrants currently in detention, including some arrested over the bank holiday weekend, who could be among the first sent back to France.

In exchange, the UK would be expected to take an equal number of asylum seekers in France with ties to Britain.

Read more: How will the one in, one out deal work?

Sir Keir Starmer hopes his deal with Emmanuel Macron will help. Pic: Reuters
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Sir Keir Starmer hopes his deal with Emmanuel Macron will help. Pic: Reuters

A record 28,288 people have crossed the Channel in small boats this year. The total is 46% higher than at the same stage last year.

More boats were seen crossing on Monday, though the figures won’t be published by the Home Office until later.

Sir Keir is under mounting pressure within his own party to grip the issue, with Sir Tony Blair’s former home secretary Lord Blunkett warning the public “will turn on” him.

But they may already have – a YouGov poll over the weekend found 71% of people think the prime minister is dealing with the small boats crisis badly.

Protests have taken place outside hotels used to house asylum seekers over the weekend, and the government is braced for more legal challenges from councils over their use.

Labour have taken a battering in the opinion polls throughout 2025, with Reform consistently in the lead.

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Entertainment

Lil Nas X pleads not guilty after being charged with assaulting police officer

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Lil Nas X pleads not guilty after being charged with assaulting police officer

US rapper Lil Nas X has pleaded not guilty after being charged with assaulting a police officer while walking in downtown Los Angeles in his underwear.

The musician, real name Montero Lamar Hill, was taken to hospital and arrested after police responded to reports of a naked man shortly before 6am on Thursday.

The district attorney’s office said on Monday that Lil Nas X faces three counts of battery with injury on a police officer and one count of resisting an executive officer.

He was being held on a $75,000 (£55,457) bail, conditional on attending drug treatment. It is not immediately clear whether he had posted it and been released yet.

He is set to return to court on 15 September for his next pre-trial hearing.

Pic: AP
Image:
Pic: AP

During the hearing on Monday, Hill’s lawyer Christy O’Connor told the judge he had led a “remarkable” life, adding: “Assuming the allegations here are true, this is an absolute aberration in this person’s life.

“Nothing like this has ever happened to him.”

A law enforcement source told Sky’s US partner network, NBC News, on Thursday that the Old Town Road and Industry Baby hitmaker punched an officer twice in the face during the encounter.

The source added officers were unsure whether he was on any substances or in mental distress.

Read more from Sky News:
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NBC News cited TMZ footage where Hill was seen walking down the middle of Ventura Boulevard at 4am on Thursday in a pair of white briefs and cowboy boots.

In the videos, Hill tells a driver to “come to the party” in one clip and in another tells the person: “Didn’t I tell you to put the phone down?”

“Uh oh, someone’s going to have to pay for that,” Hill says as he continues to walk away.

In some clips, Hill struts as if he’s on a catwalk, posing for onlookers, and at one point he places an orange traffic cone on his head.

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