Your Money Minute AI Looking for Fake Returns 2/2/26
Feb 2, 2026
David Sobey, founder of Happy Returns, builds systems to make retail returns fair and efficient. He discusses how AI spots subtle fake-return clues like button placement and fabric. He explains why detecting fraud helps retailers lower costs. Short, fast, and focused on the tech and its impact.
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Return Fraud Raises Prices For Everyone
- Retailers face substantial costs from holiday returns and return fraud, which affects pricing for all consumers.
- Detecting more fakes can lower overall consumer prices as retailers reduce fraud-related losses.
The Dupe Return Scheme
- Scammers buy real branded items then return cheaper knockoffs at return bars that accept unboxed merchandise.
- They attempt to get cash back or store credit for the dupe after the holidays.
Return Bars Centralize Risk And Detection
- Companies like Happy Returns process unboxed returns for many retailers through thousands of return bars.
- These centralized return points create a target for fraud but also an opportunity for centralized fraud detection.