The level of retail fraud has gradually been climbing. As of December 2017, the level of fraudulent transactions hit 1.58%, up from 1.47% in 2016, according to a study conducted by LexisNexis Risk Solutions.

The rise in the incidence of fraud is tied partly to a simultaneous rise in the number of online transactions, which are difficult and expensive to track. More international transactions and a proliferation of payment options, such as mobile wallets, have also exacerbated the problem. There are limited options available for verifying a consumer's identity, and there is often a lag between when a purchase is made and the transaction is confirmed, leaving a window of opportunity for fraud to occur. Current protection technology leaves much to be desired, and retailers have to walk a fine line between safeguarding consumers and irritating them with security protocols.

Returns are an area particularly vulnerable to fraud. Return fraud generally consists of an individual first stealing merchandise before attempting to return it for cash or gift cards, though more ambitious criminals can also fabricate counterfeit store receipts. Online transactions are not the only problem. The introduction of new technology in brick-and-mortar retail, like self-checkout areas, has also contributed to an uptick retail fraud, as shoppers can steal more easily and then return the merchandise for profit.

This is not a small problem for retailers. According to a report by research firm Appriss Retail, the retail industry earned $3.5 trillion in sales, with roughly 10%, or $351 billion, lost to fraud. 6.5% of these returns involved fraud, valued at approximately $22.8 billion. Companies are not the only ones hurt by the practice: as per the report, improper returns can cost states $1.4 billion in lost sales tax revenue.

Consumers can often take advantage of companies with lax return policies. A CNBC investigation, for example, found that drug addicts often fuel their habit by making fraudulent returns at big-box stores like Home Depot (HD  ) and Target (TGT  ). And after many years of a having a famously generous return policy as part of a 100% lifetime satisfaction guarantee, L. L. Bean recently announced that it will begin enforcing stricter rules. Shawn O. Gorman, the executive chairman of L. L. Bean, explained in an email to customers that a "small, but growing number of customers has been interpreting our guarantee well beyond its original intent," with some customers seeking refunds for "heavily worn products used over many years," or for products purchased through "third parties, such as at yard sales."

L. L. Bean is not the only company to do so: a National Retail Federation survey found that nearly 30% of retailers had tightened their return policies this year, by asking that consumers show identification, cutting down the window of time when returns would be accepted, or requiring that the consumer provide proof of purchase. Some consumers have accepted the changes without complaint. But others worry that it is a sign that L. L. Bean plans to skimp on the quality of its products, and one regular customer was outraged enough to file a lawsuit over the change.