Logistics
2025 Trends in Fulfilment Fraud: From Fake Addresses to Return Abuse
David Abraham
July 11, 2025
In 2025, e-commerce retailers are dealing with smarter, more aggressive fraud tactics that hurt business profits and consumer trust.
What used to be a rare case is now a serious operational threat—especially when it comes to order fulfilment.
Here’s the catch: Fulfilment fraud is growing fast. In 2024 alone, it caused over £1 billion in losses, with most cases starting online (70% of all cases) or via telecom channels (more than 15%).
If you’re in charge of fulfilment operations, staying alert to these scams is more crucial than ever.
Want to protect yourself from potential scams and stay ahead of the curve? Find out the top fulfilment fraud trends to watch out for in 2025—and beyond. Most importantly, keep reading to learn how to spot and stop them before they can negatively impact your retail or e-commerce business.
1. What is fulfilment fraud?
Simply put, fulfilment fraud happens when someone manipulates the order process and/or delivery method in retail or e-commerce for personal gain.
Think of fake addresses, false delivery claims, and abusing return policies as perfect examples.
Fulfilment fraud has become a growing concern in business, especially as scammers have gotten bolder, wiser, and more creative.
If left unchecked, it can quietly chip away at profits and customer trust.
Take it from Leigh McKenzie, Community Advocate at Traffic Think Tank.
She emphasises the rise of fulfilment fraud in the retail and e-commerce sectors. Having worked with digital marketers and business owners, she has witnessed her fair share of fraudulent activities in fulfilment operations.
McKenzie says, "We're seeing more retailers blindsided by fulfilment fraud that slips through the cracks. False claims, fake addresses, and even return abuse have become widespread, disguised as legitimate activity. It's no longer just a logistics issue but a brand and revenue risk that demands a proactive response."
For the uninitiated, fulfilment involves receiving, processing, and delivering customer orders, usually for online purchases.
It encompasses almost everything, from storing inventory and picking/packing items to shipping them out and managing returns.
With the rise of e-commerce, the fulfilment sector has shown no signs of slowing down.
Specifically, the UK micro-fulfilment market is projected to grow from $263.4 million in 2023 to $2.28 billion by 2030 at a 36.1% compound annual growth rate (CAGR).
However, as the market grows and expands, so do the fulfilment fraud scenarios in the country and around the world.
Discover the 2025 fulfilment fraud trends to avoid in the next section.
2. Common types of fulfilment fraud to avoid in 2025
It's one thing to stay updated on e-commerce trends in 2025; It's another to know the types of fulfilment fraud to watch for in 2025.
The latter provides an additional high level of protection for your business, whether retail or e-commerce. This year, it's all about spotting the warning signs early and steering clear of costly mistakes.
But here's the catch: Over £1 billion was lost to fraud in 2024 alone, with most cases starting online (70% of all cases) or through telecom channels (over 15%). That's a loud wake-up call for anyone managing fulfilment or customer service!
What should you be wary of? Below are the alarming trends in fulfilment fraud you need to know:
2.1 Fake addresses
Using fake or manipulated shipping addresses is one of the oldest tricks in the fraud playbook.
Scammers might enter incomplete details and reroute packages mid-transit. Or they can use drop points that make it hard to track the actual recipient.
This tactic doesn't just mess with your delivery rates; It can also trigger chargebacks and eat into your margins.
In cross-border shipping, it may even exploit the de minimis rule to bypass duties or delay detection.
2.2 Delivery claims
False delivery claims are on the rise. Fraudsters report items as "never received," even when tracking shows that they were successfully delivered.
Some go as far as using stolen identities or staging fake delivery issues to request refunds or replacements.
This type of fraud can be particularly challenging, depending on the shipping destination.
Policies for shipping in the UK versus internationally can vary widely. This makes it harder to verify claims or enforce consistent protocols across markets.
2.3 Identity fraud
In fulfilment, identity fraud happens when someone uses stolen, fake, and/or even synthetic identities to place orders.
However, be wary: These could be a mix of real and fake data. The accounts may appear legitimate at first, but they often lead to chargebacks, lost inventory, and serious data risks.
Here's the problem: Fraud tactics are also evolving fast.
With tools like custom voice AI being misused to impersonate support agents or customers, verifying identity now requires more than just surface-level checks.
Fraudsters have become more strategic than ever before, with technologies at their disposal!
2.4 Return abuse
Return abuse happens when customers take advantage of your return policy.
It occurs by sending back used items, claiming fake defects, and/or swapping products with counterfeits.
This is a growing concern for retailers and online sellers, with over 85% of merchants expecting an increase in return fraud this year.
To help reduce abuse, tools like steel inventory management software can improve visibility into product movement.
They also make it easier to catch suspicious return patterns before they cause more damage.
2.5 Brushing scams
Brushing scams occur when someone sends out low-cost or empty packages to random individuals, ostensibly to create a verified purchase and leave a glowing review.
It's a sneaky way for sellers to game the system and boost their product ratings, which often happens overseas!
The trouble is that it clogs up your fulfilment workflow and distorts your data.
If you're not careful enough, these fake orders can blur the line between what's real and what's artificially inflated.
This makes it harder to track and improve your actual performance for maximum profits.
2.6 Cross-border exploitation
UK e-commerce cross-border sales increased by 4% over the last 12 months.
However, cross-border exploitation can happen when fraudsters take advantage of gaps between international shipping rules, tax thresholds, and local policies.
As domestic markets slow, international sales are becoming a key driver of growth, making this type of fraud even more costly.
To stay ahead, teams need better visibility into international orders, shipping terms, and vendor agreements.
That's where tools like contract management software come in handy. These tools help you refine terms, mitigate risk, and make more informed decisions across borders.
Learn some fulfilment fraud identification and prevention strategies in the next section.
3. How to identify and prevent fulfilment fraud
Staying ahead of fulfilment fraud isn't just about reacting; it's about being proactive.
It's about knowing what to look for and putting safeguards in place before things go sideways.
That's why the ecommerce fraud detection and prevention market has surged in response, growing from $61.01 billion in 2024 to $73.96 billion in 2025, with a 21.2% CAGR.
To build a strong line of defence, start by tightening your workflows, tracking red flags, and working smarter with the right tools and partners.
One way to stay ahead is to work with the best fulfilment companies in the UK, especially those that can help you scale responsibly while keeping fraud risks in check.
That said, here's how to identify and prevent fulfilment fraud:
3.1 Identifying fulfilment fraud
Identifying fulfilment fraud involves spotting what doesn't feel right rather than waiting for something to go wrong.
Fraudsters often leave behind subtle clues. The earlier you catch them, the better your chances of avoiding bigger issues down the line.
Grant Aldrich, Founder of Preppy, recommends identifying fulfilment fraud the same way he approaches risk management across his company.
They ensure this by watching for patterns that don't quite add up. It's about catching the little signals before they snowball into bigger losses.
Aldrich says, "Identifying fulfilment fraud starts with spotting what feels out of place, whether it's a high-value order from a new customer, inconsistent shipping info, or a sudden spike in returns. These aren't just data points; They're red flags that deserve a closer look."
Likewise, Aldrich cites the tell-tale signs of fulfilment fraud as follows:
- Red flags in order behaviour: Be on the lookout for bulk orders from new accounts, mismatched billing and shipping addresses, or overnight shipping requests on high-ticket items. These often hint at fraud flying under the radar.
- Suspicious return patterns: Frequent returns from the same customer, especially with vague reasons or mismatched products, can signal abuse. If it feels too frequent to be a coincidence, it probably is.
- Delivery tracking anomalies: Some orders are marked as delivered but disputed by the customer. Others encounter multiple failed delivery attempts to the same address. These are tell-tale signs of manipulation in the fulfilment process.
- Digital fingerprinting: Tracking IP addresses, device IDs, and browser behaviour helps uncover hidden fraud. When multiple accounts behave identically, there's likely one bad actor behind the curtain.
3.2 Preventing fulfilment fraud
Preventing fulfilment fraud entails protecting your bottom line and keeping your customers happy—not just putting barriers against fraudsters.
When implemented strategically, fraud prevention can boost sales by 48%, increase customer loyalty by 44%, and reduce costs by 20%.
Anna Zhang, Head of Marketing at U7BUY, suggests investing in fraud prevention for fulfilment processes.
"Investing in fraud prevention isn't just a safeguard; It's a growth strategy. When your fulfilment process is secure, customers trust you more. That trust directly impacts repeat business and long-term revenue!"
Below are practical ways to prevent fulfilment fraud:
- Audit fulfilment workflows. Regularly reviewing your fulfilment process helps spot weak links before fraudsters do. From warehouse handling to final delivery, every step should be clean, traceable, and well-documented.
- Set AVS system in place. An Address Verification System (AVS) cross-checks billing and shipping info to catch mismatches. It's a simple tool that does heavy lifting when it comes to flagging risky orders.
- Ensure customer communication. Clear, timely communication fosters trust and reduces the room for fraudsters to manoeuvre. Proactive updates and confirmation emails keep customers in the loop, not to mention suspicious activity in check.
- Craft smart return policies. Your return policy shouldn't be a free pass for abuse. Striking the right balance between customer-friendly and fraud-resistant can save you headaches and revenue leaks.
- Track packages accurately. End-to-end tracking with proof of delivery helps reduce false claims and disputes over missing items. The clearer the trail, the harder it is for scammers to exploit.
- Flag repeat offenders. Keep a close watch on patterns like frequent returns, mismatched details, or refund requests. Identifying and blocking repeat offenders is crucial to preventing fraud at its source.
- Train staff on fraud identification. Your frontline team plays a big role in spotting shady activity. With the right training, they can catch early warning signs and act before fraud gets out of hand.
- Use fraud detection tools. Automated tools help flag risky transactions, duplicate accounts, and unusual patterns in real-time. They're like an extra set of eyes that never blink.
- Leverage tech stack. Modern fraud prevention goes beyond manual checks. Tools powered by machine learning (ML) and artificial intelligence (AI) in e-commerce can analyze behaviour at scale. They can also learn from past incidents and make more informed decisions more quickly.
- Establish feedback loops. Build communication between your teams (such as support, logistics, and IT) so fraud signals don't slip through the cracks. The faster the feedback, the faster the fix.
- Partner with stakeholders. Work closely with vendors, couriers, and third-party logistics providers to share data and align on best practices. Understanding the difference between a warehouse and a fulfilment centre also helps tailor your fraud strategy to the right environment.
Fulfilment fraud will never go away—completely. However, your ability to detect and deter it can make all the difference.
Therefore, be cautious of the fraud trends outlined above and follow our recommended preventive measures as well.
Remember, your course of action requires not only tools and resources but also a robust mindset and proper coordination.
As 2025 unfolds, consider fraud prevention not as a checklist but as an ongoing team effort.
Loop in your tech, ops, and CX teams, and keep one eye on the horizon! What better way to proceed with this than to partner with Bigblue's fulfilment centres? Sign up now to book a demo!
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