Christopher Finazzo, former executive VP and chief merchandising officer for Aeropostale, has been sentenced to eight years in prison after being convicted of defrauding the company and taking more than $25 million in kickbacks from a key vendor.
The retail industry will lose an estimated $8.76 billion to return fraud this year, and $3.39 billion during the holiday season alone, according to the National Retail Federation’s 2013 Return Fraud Survey.
Christopher Finazzo, 57, who was an executive VP and chief merchandising officer at Aeropostale, was found guilty on Thursday of 14 counts of mail fraud, one count of wire fraud and one count of conspiracy.
Forty percent of retailers have no online fraud prevention in place, despite the fact that 85% consider online fraud prevention a high priority, according to a survey by ThreatMetrix, a provider of integrated cybercrime prevention solutions.
Survey results released Thursday by the National Retail Federation found that fewer retailers expect return fraud rates to grow this holiday season, due in part to stronger checks and balances and to enhanced return policies.
Accertify, a provider of software, tools and strategies for preventing fraud and a subsidiary of American Express, announced that Abercrombie & Fitch has implemented its Interceptas fraud prevention platform to enhance the retailer's ability to protect against credit card fraud in its direct-to-consumer business.
More and more retailers are seeking innovative ideas to deliver customer service excellence at the return desk in an attempt to set them apart from the competition and make a first-rate impression with consumers.
One-third (29% ) of consumers across eight major economies have been victims of credit-card fraud in the past five years, according to the 2010 Global Card Fraud Survey by ACI Worldwide, an international provider of payment systems.
Survey results released Tuesday by CyberSource, a Visa Co., showed that the online fraud rate has remained flat in the United States and Canada; however, U.K. merchants are seeing a rise in e-commerce fraud.