ID Scanner Solutions to Avoid Refund Fraud

Protect your business from fake & illegitimate Identity usage.

Is Refund Fraud Affecting Your Business?

Refund fraud occurs when a criminal illegally obtains an item, usually through shoplifting, and then returns the item often with a fake or fraudulent ID in exchange for the money or store credit for the stolen item.

This is a multibillion-dollar criminal industry that affects millions of people every year, especially during the holiday shopping season. The National Retail Federation estimated that during the 2015 holiday season, at least 3.5% of all returns would be fraudulent. It’s so profitable for criminals that large organised crime rings are committing retail fraud.

Criminals engaging in refund fraud are often quite imaginative when devising their plans. As retailers have tried to reduce their risks by increasing providing store credit for returns as opposed to cash, the criminals have up their game by selling the store credit on the grey market.

As The Daily Beast reports:

“By selling the gift card online, [criminals] can receive up to 80 percent of the retail value, versus 10-20 percent on the street corner,” said Joseph LaRocca, vice president of loss prevention at Retail Partners.

This phenomenon puts retailers in a difficult position. They want to serve their customers by making returns as easy as possible, but they also need a system for protecting against retail fraud.

By determining if a fake ID is being used when merchandise is being returned and by tracking unusual patterns in returns, companies can significantly reduce return fraud.

The Solution: Identity Scanners

The cost of retail fraud is so high that retailers need to make changes.

What’s needed is a way to accurately and securely collect this personal information to ensure the organisation’s bottom line as well as a smooth customer experience.

Our Features

ISO Accreditation

Security is important to Scantek; we are the only ISO-accredited Australian ID scanning solution – ISO 27001: Information Security Management.

24/7 Support

Australian customer service is critical to our clients. Our highly skilled customer Australia-based support team is available 24/7.

Scan All Valid IDs

Our solution recognises all valid and accepted forms of ID in Australia: Drivers Licences, Proof of Age Cards (including 18+, Keypass, Photo Cards). We also recognise International IDs and Passports.

Minimise Losses

Scantek’s ID authentication allows our customers to deny purchases, prevent fraudulent ID usage, and minimise loss through fraud.

Fast Accurate Scanning

Scantek’s solutions take as little as 3 seconds to scan and authenticate valid IDs. Fraudulent IDs are identified and flagged immediately.


Secure Private Data

Scantek has implemented an Information Security Management System (ISMS) meeting the requirements of ISO27001:2003 protecting the confidentiality and privacy of any data collected.

Leading Fraud Detection

Our solution is always one step ahead of fraudsters. Multiple tools verify the ID is valid and alerts operators to suspicious behaviour.


Complete Checks

Each ID scanned must pass through dozens of authentication checks, ensuring the ID is valid and the customer has no past infractions.

Customisable Solutions

Scantek’s solutions aim to meet the needs of large business by offering customised software, so you can adjust specific reporting, scanning and system integration requirements to suit your business.

Identity fraudsters and customers have the ability abuse the money-back guarantee, so much so that buying a product with the intention of returning it has become a trend.

Fraud associated with returns costs retailers billions during the holiday season alone.

Return fraud is one of the leading causes of loss across the entire retail industry, and so in turn, retailers are looking for solutions including requiring a form of identification.

Limiting these kinds of fraud can not only protect a retailer’s product and bottom line, but it can also allow for better customer experience.