UPS’ Happy Returns pilots AI tool to halt decoy returns fraud
· Source: supplychaindive.com
In short
UPS' Happy Returns is piloting AI-powered Return Vision software to combat decoy returns fraud, where customers return cheaper lookalike items instead of the original products. The system compares returned items with retailer catalog images to detect discrepancies like stitching differences or missing logos, helping prevent an estimated 9% of fraudulent returns. Retailers using the system see an average of $218 in prevented loss per flagged return, with plans to expand the service more broadly in 2026.
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Tags: returns, fraud, AI, logistics, automation, retail