Forter, a global digital trust and fraud prevention platform working with brands including Adidas, eBay and SKIMS, has warned that retailers are facing a growing wave of AI-powered fraud attacks at scale.
The company, which assesses fraud risk across more than $500 billion in online retail transactions annually, said increasingly flexible return and refund policies are being exploited by both consumers and organised fraud networks.
According to Forter, generative AI tools are making it easier for fraudsters to manipulate receipts or create convincing fake imagery, including photos appearing to show damaged products.
The company said AI-generated damage claims are now the fastest-growing form of return abuse.
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Retailers are also dealing with coordinated fraud groups using AI to fabricate “evidence”, ranging from fake damage photos to sophisticated “item-not-received” claims.
Forter added that some organised fraud rings have scaled their activity by offering “returns-as-a-service” schemes in exchange for a share of the profits.
The company said these attacks are evolving faster than many legacy fraud systems can respond, placing additional pressure on retailers’ returns operations.
Fashion retailers are particularly exposed, as high return volumes already weigh heavily on margins.
Forter’s data also found that 53% of merchants report issues with “wardrobing”, where customers wear clothing before returning it, while 30% of consumers admit to buying extra items to qualify for free shipping before later returning them.
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