How Narvar Assist Mitigates 4 Costly Delivery Claim Fraud Tactics

Delivery claims often start with a frustrated customer and end with costly losses for retailers. When customers report missing or incomplete orders, the manual process of resolving claims exacerbates the issue, leading to customer dissatisfaction, appeasement payouts, and operational inefficiencies.

The stakes are high. Fraudulent delivery claims contribute to an estimated $101 billion in annual industry losses. Retailers spend up to $70 per claim to verify authenticity, and the problem is growing: delivery claims have increased by 15% year-over-year on average.

Enter Narvar Assist: a delivery claims management solution powered by IRIS™ (Intelligent Retail Insights Service), Narvar’s proprietary AI platform. By automating claims handling, reducing fraud, and enhancing customer satisfaction, Narvar Assist enables retailers to protect profits and deliver exceptional customer experiences.

Let’s examine four common delivery claim fraud tactics and how Narvar Assist helps mitigate them.

Four Common Delivery Claim Challenges

Fraudsters exploit the following common delivery claim scenarios:

1. Item not delivered. Claims range from orders genuinely lost in transit to those marked “delivered” but not found by the customer. Alarmingly, 31% of consumers admit to lying about non-delivery to secure refunds or replacements.
2. Item damaged. Damage during shipping is a legitimate issue, but 27% of consumers confess to falsely claiming damaged goods.
3. Item(s) or package(s) missing. Shoppers frequently report partial orders as incomplete. Fraudsters capitalize on this ambiguity to request refunds or replacements, even when orders are fully delivered.
4. Wrong item delivered. While human errors occur in fulfillment, fraudsters exploit this scenario by swapping items to claim higher-value refunds or replacements.

Retailers can mitigate these challenges by combining robust policies—such as requiring Visual Proof of Delivery (VPOD) and integrating package tracking with support systems—with advanced fraud prevention solutions like Narvar Assist.

Narvar Assist: AI-Powered Delivery Fraud Prevention

Narvar Assist is the world’s first delivery claims fraud prevention software, purpose-built to help retailers combat rising fraud while maintaining trust with customers.

Fueled by insights from over 42 billion annual consumer interactions through IRIS™, Assist analyzes historical and real-time data to distinguish high-trust customers from bad actors. This enables retailers to deliver personalized outcomes while safeguarding profitability.

Here’s how Narvar Assist drives value:

1. Reduction in appeasement payouts. Fraud detection signals help retailers identify when appeasements are warranted, preventing unnecessary payouts. Narvar Assist users report up to a 25% reduction in appeasement payouts.
2. Reduction in claim-related support conversations. A self-service portal empowers customers to resolve issues independently, allowing support teams to focus on high-priority cases. Narvar Assist users have achieved up to an 80% reduction in claim-related conversations.
3. Deflection of ineligible claims. Leveraging Narvar’s extensive delivery data, Narvar Assist enforces claim policies automatically, deflecting fraudulent claims before they reach support. Users report a 30% deflection in ineligible claims.

A Strategic Approach to Fraud Prevention

With fraudulent delivery claims becoming increasingly frequent and sophisticated, retailers need advanced tools to protect their bottom line. Narvar Assist offers the dual advantage of fraud mitigation and superior customer experiences, empowering brands to retain the trust of their best customers while minimizing operational costs.

Ready to transform your claims process? Learn more about Narvar Assist or request a demo.