Back-to-School Shopping Scams Are Surging: What Merchants Need to Know

Back-to-school shopping brings a welcome spike in volume for retailers, however, this annual event (or should we say preparation frenzy) has become prime hunting grounds for fraudsters. Return fraud and other retail scams have escalated as e-commerce and omnichannel strategies have gained ground.

Seventy-two million Americans used curbside or buy online, pick up in-store (BOPIS) in the past year, showcasing momentum for newer shopping methods. Last year, it was reported that 70 percent of parents planned to shop online and in-store for back-to-school, up from 66 percent in 2023. This shows a consumer expectation for seamless experiences across digital and physical touchpoints. The shift toward unified commerce, connecting inventory, fulfillment and sales across every channel, has created both convenience for shoppers and complexity for retailers.

A Perfect Storm for Fraudsters

Between July and September, fraud activity spikes alongside retailer campaigns. Attackers often exploit the sense of urgency, launching fake storefronts, sending phishing blasts engineered to mimic authentic brands, or running social media ads promising deep discounts on school supplies.

With families pressed for time and retailers rushing to fulfill cross-channel orders, attackers bank on split-second decisions and overlooked details. This environment lets payment fraud, refund abuse, and account takeovers slip through more easily when volumes peak and teams are under pressure.

The Merchant’s Dilemma

Retailers face a balancing act: deliver frictionless service for busy families while stopping losses from opportunistic abuse. Refund abuse, card-not-present (CNP) chargebacks and empty-box schemes all spike when stores juggle high foot traffic and an endless pulse of online orders. Others lean into omnichannel loopholes, abusing return policies, loyalty points or gift card systems. In a recent survey, nearly 75 percent of retail executives cited return-related fraud and abuse as the top operational concern during peak shopping periods, acknowledging an estimated $101 billion lost in 2024 in the U.S. alone.

What’s changed isn’t just the number of attacks, but the sophistication. Transactions now cross multiple channels — BOPIS; buy online, return in-store (BORIS); home delivery; same-day pickup — leaving gaps for scammers to exploit. And fraudsters are getting more organized. Online forums circulate step-by-step guides on exploiting instant refunds, digital gift cards or price adjustments, signifying how quickly tactics evolve in lockstep with consumer expectations.

Real-Time Signals, Real Results

Leading merchants aren’t waiting for after-the-fact loss statements; they focus on signals that reveal real-time scams. Unified commerce produces a goldmine of data — e.g., when a loyalty account that’s been quiet all summer suddenly triggers five separate orders to different states, or when return rates from a sneaker release in one ZIP code leap out of historical range. This isn't big data; it’s the new playbook for catching fraud in the act.

Still, prevention depends on execution, not analytics dashboards alone. Teams empowered to act on suspicious behavior by freezing transactions, flagging accounts or enforcing clear return policies, close the window of opportunity. Fraudsters thrive on ambiguity; clarity and speed are what send them elsewhere.

Risk Moves With the Customer

Fraud, like commerce, follows the path of least resistance. Omnichannel growth means risk is no longer confined to checkout. Scammers probe every customer touchpoint (e.g., bonus point offers, referral codes, gift card activations, instant refunds) and look for a way in. More than half of last year’s retail return dollars came from online purchases, showing that a majority of return fraud is now linked to nontraditional sales and refund channels.

Back-to-school, in particular, intensifies this exposure. Flash sales and limited-time bundles invite account takeovers (ATO) and promo code abuse, while lenient return policies allow fake receipts or empty-box claims. Retailers that silo fraud prevention in one department or focus protection narrowly on one point in the customer journey increasingly pay the price.

Turning Experience Into Advantage

Merchants can make fraud prevention a competitive advantage, not an afterthought. However, to do so they must move beyond reactive monitoring to a proactive strategy that unifies customer and transaction data into a single source of truth. This back-to-school season, merchants that prioritize their fraud offense stand to protect their reputation and revenue. The next scam doesn’t need a new channel; it needs an unlocked door.

Matt DeLauro is the president, GTM at SEON, a global fraud prevention solution.