How Retailers Are Using AI to Stop Return Fraud, Featuring Tailed

CBS News profiled the growing crisis of return fraud in retail and the AI-powered solutions being deployed to combat it, featuring Tailed among the companies tackling this problem. Return fraud has reached record levels, with as many as one in nine returns now being fraudulent.

Tailed specifically addresses "Fake Tracking ID" (FTID) fraud, which since 2020 has become the largest form of return fraud, costing eCommerce companies billions annually. The company uses AI agents to detect and prevent professional refunders and policy abusers from exploiting retailer return policies.

Founded in 2024 by TJHSST alumni, Tailed was built in the San Francisco Bay Area and uses AI image analysis and behavioral pattern detection to transform how retailers handle returns.