What type of theft involves an employee completing a false return transaction to take cash?

Refund fraud involves an employee manipulating the return process to unlawfully obtain cash from the business. This typically occurs when an employee processes a return for an item that was either never sold or not returned by a customer, allowing them to pocket the cash that is supposed to go back to the customer. By creating a false return transaction, the employee is committing theft against the business, exploiting the system set in place for legitimate returns.

This type of fraud is particularly insidious because it takes advantage of policies designed to provide customer service while bypassing the proper checks that would typically prevent such dishonest actions. Understanding refund fraud helps businesses implement tighter controls on their return processes, thereby reducing their risk of internal theft.