In making it easy for people to return merchandise for refunds, Australian retailers have encouraged people to steal merchandise and receive cash in the amount of the price of the merchandise through refund channels. In one case, a 17-year-old girl obtained $1,282 in cash by taking goods directly from a department store's shelves to cashiers for refunds. The public, the police, and security experts have criticized retailers for allowing refunds without a receipt for the merchandise being returned. All indicators suggest that refund fraud is a considerable problem for retailers. A discussion of the typology of refund fraudsters describes the following types of offender categories: professional shop thieves, staff thieves, drug- related offenders, check fraudsters, opportunistic fraudsters, manipulative thieves, and temporary thieves. In an effort to reduce the opportunities for refund fraud, the Retailers Council of Australia adopted refund requirements to reduce refund fraud in May 1993. One requirement is that retailers inform customers that proof of purchase is required before a refund can be issued. The second requirement is that the proof-of-purchase requirement be enforced when a refund is requested. Other requirements pertain to the conditions that must be met when a customer is provided a refund without a proof of purchase. These requirements include proof of identity; a handwritten statement by the customer that provides information on identity, address, and circumstances of the purchase; a set value for a cash refund with the remainder paid by store check; and for purchases made with a check, no refund until the check has cleared. Adaptations following the implementation of these policies are also described. Detected refund frauds have decreased since the policy's implementation. 2 figures and 16 references