Fraud Risks in Deposit Return Schemes
A Deposit Return Scheme gives every eligible container a monetary value.
Day to day operations
Why can fraud occur?
A Deposit Return Scheme gives every eligible container a monetary value.
Where money is involved, strong controls are important.
If returned containers are not properly verified, recorded and securely stored, there may be opportunities for fraudulent claims, duplicate returns or discrepancies.
Where can the risks occur?
Potential risks can include:
- Ineligible containers being accepted
- The same container being claimed more than once
- Incorrect return quantities being recorded
- Containers being added to or removed from open bags
- Differences between retailer records and verified counts
Why are open bags a risk?
Once a customer has received their deposit refund, the returned container represents a financial transaction.
If bags remain open or unsecured, containers may potentially be added, removed or handled again before collection.
This can make it more difficult to maintain a clear and accurate chain of custody.
How can retailers reduce the risk?
Strong processes and good record keeping can help protect your business.
Retailers should consider:
- Verifying containers before issuing a refund
- Accurately recording every return
- Using secure bags and storage
- Limiting unnecessary access to returned containers
- Maintaining a clear chain of custody through to collection
Keep reading
- Bagging & Tagging ExplainedOnce drink containers have been returned, they need to be securely stored and prepared for collection.
- Hygiene Challenges of Manual ReturnsEmpty does not always mean clean. Returned containers may still hold liquid, be sticky or arrive damaged, and handling them by hand brings that into contact with staff and surfaces.
- What Happens to Returned Containers?Returning an empty drink container is only the beginning of its journey.