UPS introduces an AI tool in its Happy Returns program to prevent fraudulent returns involving decoys.

UPS' Happy Returns is enhancing its capabilities to combat returns fraud during the post-holiday rush. They are piloting two AI-driven features with select retailers, including risk assessments for returns based on shopper behavior and an auditing system called Return Vision. This system compares returned items against the retailer's catalog to catch discrepancies that humans may miss, such as differences in stitching or labels. The company aims to process flagged returns quickly to maintain efficiency, with plans to expand these tools in 2026.