According to a recent LinkedIn post from Two Boxes, company leadership is drawing attention to a feature in Modern Retail that discusses the rise of AI-driven fraud affecting retailers. The post highlights tactics such as fabricated product damage photos, fake shipping receipts, and falsified police reports that are allegedly enabled by generative AI tools.
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The LinkedIn post cites industry estimates that fraudulent returns already cost retailers more than $100B annually and account for roughly 14% of total retail returns. It suggests that the increasing use of AI by bad actors could further expand this loss exposure, potentially pressuring margins and loss-prevention budgets across the broader retail and e-commerce sector.
As shared in the post, Two Boxes positions itself as being “on the front lines,” offering technology aimed at helping retailers detect and mitigate these AI-augmented fraud schemes. For investors, this emphasis may indicate a growing demand environment for fraud-prevention and returns-management solutions, which could support revenue opportunities for vendors in this niche if adoption scales.
The focus on AI-related risk also underscores a broader shift in retailer priorities toward operational resilience and data-driven risk management. If retailers increasingly allocate resources to specialized tools to combat returns fraud, companies like Two Boxes could strengthen their strategic relevance in e-commerce operations, though competitive dynamics and proof of efficacy will remain key factors for long-term commercial impact.