Holiday returns go high-tech: How UPS is using AI to crush $76.5B in return fraud

Dec 21

Written By Matthew Prewitt

Original article published here.

Overview

The holiday season brings not just gifts, but also the challenges associated with returns. UPS is leveraging artificial intelligence technologies to combat the significant issue of return fraud, particularly during this high-traffic shopping period.

The Rise of Return Fraud

With online shopping booming, return fraud has presented retailers with a challenge worth $76.5 billion. This encompasses various schemes where customers exploit return policies.

AI Solutions

UPS, through its Happy Returns division, is testing AI-driven solutions that aim to authenticate returns better, identify fraudulent cases, and streamline the return process for genuine customers.

Conclusion

As the holiday return period peaks, it is vital for retailers to adopt advanced technologies that can protect their bottom line while ensuring customer satisfaction.