AI program helps Lacoste tackle return fraud costing retailers billions

Return fraud is a growing issue for retailers, costing them over $100 billion in the U.S. in 2023. This represents an increase from $10.40 to $13.70 lost for every $100 returned compared to the previous year. To combat this, Lacoste is using a new AI program called Vrai, developed by Cypheme. Vrai can identify counterfeit returns with 99.7% accuracy by analyzing images of products to spot subtle differences. Return fraud often involves customers returning fake items or completely different products for refunds. Major retailers like Amazon have faced scams where customers fabricated stories to obtain refunds, highlighting the need for better detection methods.