Attention Shoppers: All Sales (Should Be) Final

While not the latest trend, the bear market has spurred a spike in acts of 'wardrobing' and other illegal retail fraud in stores nationwide.

'Wardrobing' essentially describes the act of purchasing a retail item, using the merchandise and returning it for a refund often with the original tags still attached. Think of it as ordering an entrée at a restaurant, having the waiter bring it to your table, then sending it back to the kitchen and having the waiter serve it to the next customer who orders the same meal.

As this blog notes, Good Morning America featured a clip last week on the year round practice that peaks during the holidays, as consumers are confronted by the traditional excess of events and cocktail parties and pressure to come up with something suitable to wear. The segment even has an interview with an anonymous 'wardrober' who admits she only committed her wrongdoings because she was strapped for cash.

While this woman and other frequent wardrobers often write off their misdeeds, it seems to be in their best interest to stop while they're ahead. Retail stores are finally catching on, expecting a loss of $11.8 billion in 2008 ($3.54 billion during the holiday season alone) due to fraudulent returns and thus increasing security surveillance. Furthermore, while some stores are extending return policies to garner more sales, many retailers are beginning to give bonuses to cashiers who catch wardrobers red-handed, as well as tracking those customers who are making a high number of returns.

So, wardrobers beware: if store cameras don't catch onto the illegal practice, few cashiers will pass up the bonus from denying a return of that stained shirt you wore to the company holiday party.