Refund Fraud Prevention Checklist

Preventing Revenue Leakage & Ensuring Policy-Compliant Refunds

Refund fraud can lead to significant revenue loss, inventory discrepancies, and misuse of return policies. Weak controls, poor documentation, or lack of oversight increase the risk of fraudulent refunds.

The Refund Fraud Prevention Checklist helps ensure refund processes are secure, policy-compliant, and monitored to prevent misuse across stores.

Refund Fraud Prevention Checklist

Refund Policy Awareness Impact

1. Are refund policies clearly defined and documented?
   ☐ Yes
   ☐ No
   If No, Reason: ____________________________________________________________
2. Are refund policies communicated clearly to staff?
   ☐ Yes
   ☐ No
   If No, Reason: ____________________________________________________________
3. Are refund policies displayed or accessible to customers?
   ☐ Yes
   ☐ No
   If No, Reason: ____________________________________________________________
4. Are exceptions to refund policies approved by management?
   ☐ Yes
   ☐ No
   If No, Reason: ____________________________________________________________
5. Are policy updates communicated promptly to stores?
   ☐ Yes
   ☐ No
   If No, Reason: ____________________________________________________________

‍

Refund Request Verification Impact

1. Is original bill or proof of purchase verified for refunds?
   ☐ Yes
   ☐ No
   If No, Reason: ____________________________________________________________
2. Is refund eligibility checked against policy timelines?
   ☐ Yes
   ☐ No
   If No, Reason: ____________________________________________________________
3. Is product condition verified before approving refunds?
   ☐ Yes
   ☐ No
   If No, Reason: ____________________________________________________________
4. Are serial numbers or SKUs matched accurately?
   ☐ Yes
   ☐ No
   If No, Reason: ____________________________________________________________
5. Are suspicious refund requests flagged immediately?
   ☐ Yes
   ☐ No
   If No, Reason: ____________________________________________________________

‍

POS & System Controls Impact

1. Are refunds processed only through authorised POS functions?
   ☐ Yes
   ☐ No
   If No, Reason: ____________________________________________________________
2. Are refund transactions restricted to authorised staff?
   ☐ Yes
   ☐ No
   If No, Reason: ____________________________________________________________
3. Are unique login credentials used for each cashier?
   ☐ Yes
   ☐ No
   If No, Reason: ____________________________________________________________
4. Are manual refunds or overrides tracked and justified?
   ☐ Yes
   ☐ No
   If No, Reason: ____________________________________________________________
5. Are refund amounts validated before processing?
   ☐ Yes
   ☐ No
   If No, Reason: ____________________________________________________________

‍

Documentation & Evidence Impact

1. Are refund reasons recorded accurately in the system?
   ☐ Yes
   ☐ No
   If No, Reason: ____________________________________________________________
2. Is supporting evidence attached for refund transactions (where required)?
   ☐ Yes
   ☐ No
   If No, Reason: ____________________________________________________________
3. Are refund receipts or confirmations issued to customers?
   ☐ Yes
   ☐ No
   If No, Reason: ____________________________________________________________
4. Are refund logs maintained and reviewed regularly?
   ☐ Yes
   ☐ No
   If No, Reason: ____________________________________________________________
5. Are high-value refunds documented with approvals?
   ☐ Yes
   ☐ No
   If No, Reason: ____________________________________________________________

‍

Monitoring & Review Impact

1. Are refund trends analysed regularly?
   ☐ Yes
   ☐ No
   If No, Reason: ____________________________________________________________
2. Are frequent refund customers identified and reviewed?
   ☐ Yes
   ☐ No
   If No, Reason: ____________________________________________________________
3. Are staff refund patterns monitored for anomalies?
   ☐ Yes
   ☐ No
   If No, Reason: ____________________________________________________________
4. Are refund fraud incidents escalated to management?
   ☐ Yes
   ☐ No
   If No, Reason: ____________________________________________________________
5. Is refund fraud prevention reviewed during audits?
   ☐ Yes
   ☐ No
   If No, Reason: ____________________________________________________________