Retailers face surge in AI-generated fake damage claims and refund scams

Retailers are being hit by a new wave of AI-powered refund fraud, as shoppers and organised crime groups use generative AI to create fake damage claims and convincing return scams.
New data from global digital trust and fraud prevention platform Forter found that AI-generated damage claims are now the fastest-growing form of return abuse.
The company said increasingly flexible retail policies were being exploited by both consumers and organised fraud networks.
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