Nearly one in every 10 retail items returned for a refund in the U.S. is fraudulent, according to a reverse logistics company owned by UPS, which is now turning to artificial intelligence to tackle the $76.5 billion annual problem plaguing retailers. The company, which specializes in managing the return process for major brands, says AI-powered tools will help identify suspicious return patterns and flag potentially fraudulent claims more accurately and efficiently. As holiday shopping drives a surge in returns—often doubling during peak seasons—retailers face mounting losses from stolen goods, altered packaging, and fake receipts. The AI system analyzes data such as return history, shipping details, product condition reports, and customer behavior to detect anomalies that may indicate fraud. By automating this process, the company aims to reduce financial losses, improve operational efficiency, and help retailers maintain trust in their return policies. The initiative marks a growing trend of using machine learning to combat fraud in e-commerce, especially as online shopping continues to expand.