Return Fraud Detection With AI Returns Verification

Every refund approved without a look at the item is a bet that the customer is honest. Most are, and a few cost you a lot. Building Agentic builds returns verification that checks photos, condition and return history before money moves, with a working prototype guaranteed in 14 days.

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― BUILD VS. API

API First, Own Model Later

For a few hundred photo returns a month, a frontier multimodal API is the cheapest verifier. Past a certain volume, a purpose-built model wins on cost, accuracy and privacy, as it did for a beauty retailer handling skin-reaction photos. Policy rules stay as plain, auditable code.

― TRACK RECORD

Returns Verification We've Already Built

For an online beauty retailer, we built a computer-vision returns verifier that matches customer photos against reference and defect libraries, now piloting in several countries. For a DTC brand, behavioral return-fraud scoring cut fraudulent returns 38% (representative engagement, anonymized under NDA).

Customer Photos Stay Private

Return photos and order data stay inside your private cloud. Sensitive images, such as skin reactions, never reach third-party model providers or train a public model.

Every Decision Explained

Reviewers see the photo match, risk signals and policy rule behind every flag, so a disputed refund can be explained to the customer in one message.

Your Rules, Your Thresholds

You set the confidence levels for auto-approve, review and reject, and you can change them any day without waiting for a ticket or release from us.

Scales With Return Volume

Start with your highest-risk categories. The same pipeline extends to new SKUs, channels and warehouses, and moves from API calls to a purpose-built model as photo volume grows.

Returns Verification Software Cost & Packages

Verification Prototype

$15,000+

A focused verifier for one return channel and your highest-risk categories, built and measured on your real data in about two weeks. Best for DTC brands testing whether verification beats blanket policy changes.

What's included?

Returns Audit: ranked fraud patterns, risky SKUs and the current cost of abuse

Prototype Verifier: photo matching or behavioral risk scoring on your real returns

Data Connection: read-only link to Shopify, Magento or your returns portal

Findings Report: measured accuracy, false positives and the fastest path to production

Get a Free Return-Fraud Audit
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Returns Verification Platform

$38,000+

A production verification flow combining photo checks and behavioral scoring, with review queues and dashboards for your CX team. This is the tier most mid-market retailers choose once the prototype proves its accuracy.

What's included?

Everything in Verification Prototype: hardened for daily use and deployed in your private cloud

Decision Thresholds: auto-approve, review or request more evidence, all under your control

Review Queue: low-code workspace with photos, scores and reasons for every flag

Integration: returns portal, helpdesk and storefront connected through secure APIs

Get a Free Return-Fraud Audit
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Omnichannel Verification Build

$75,000+

End-to-end verification across online, marketplace and in-store returns plus warehouse inspection grading, with agentic workflows that request evidence and draft decisions. Built for multi-channel retailers processing thousands of returns a month.

What's included?

Everything in Returns Verification Platform: extended across channels, warehouses and product categories

Warehouse Grading: inspection checklists and photo grading at receiving for resale decisions

Agentic Workflows: AI agents that request evidence and draft decisions for reviewers

Compliance & Training: SOC2/GDPR-aligned deployment plus onboarding for CX and warehouse teams

Get a Free Return-Fraud Audit
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Why Choose Building Agentic?

Returns apps move boxes and fraud platforms score orders. Neither checks the item that came back, which is where verification earns its money.

Item and Behavior Together

We verify the returned item and the customer history in one flow, instead of buying two tools that never talk to each other.

Evidence, Not Guesswork

Every decision comes with the photo match, risk signals and reasons attached, so reviewers act in seconds and customers get fair outcomes.

Built on Shipped Systems

Photo verification and behavioral scoring are both live in client work, so your build starts from proven components, not a blank page.

You Own Everything

Code, models and reference libraries stay yours, with no per-return fee standing between you and your own returns verification.

How It Works

Verification only works if good customers barely notice it. Each of the four stages is measured on two numbers, fraud caught and friction added, before we move on to the next one.

Step 1

Audit Your Returns

We review return reasons, refund history and photos, then pinpoint the fraud patterns and categories worth verifying first, ranked by margin impact.

Step 2

Prototype on Data

A working verifier goes live on your real returns within about 14 days, with accuracy and false positives you can measure.

Step 3

Integrate & Guard

We connect your storefront, returns portal and warehouse, set approval thresholds, and keep a person in the loop for every rejection.

Step 4

Measure & Scale

We compare fraud, review time and refund speed to your baseline, then extend verification to new channels, warehouses and categories.

Industries We Build Returns Verification For

Return fraud looks different in every channel, but the verification engine is the same: evidence in, explainable decision out. These are the operations where we already run production systems and where verification pays back fastest.

DTC and e-commerce brands fighting ecommerce return fraud: wardrobing, empty-box claims and serial returners.

See our E-Commerce & Retail AI work
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Brands selling through big-box retailers and 3PLs, where returns arrive through partner channels.

See our EDI Integration work
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Retail supply chains tracing defect spikes back to a single supplier batch or warehouse.

See our Procurement & Supply Chain AI work
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Who Builds Your Returns Verification

A founder leads every engagement. Here is who you will work with and why their background matters for returns and refund fraud.

Vladislav Volovik
Data & Analytics Lead
Worked as an e-commerce data analyst at Sephora (LVMH Group) in Paris, inside one of the largest beauty catalogs, after five years building SAP Analytics BI at Allianz Technology. He designs the return-history data model behind every risk score.
Alexander Soldatov
Product Lead
Ran cross-border logistics products at AliExpress, launching China and Turkey corridors with 25% faster fulfillment, after product roles at Yandex and Tinkoff. He scopes which return channel and fraud pattern your prototype tackles first.
Sergey Rodin
Managing Partner
Founder of Lava Media in San Diego, with 900+ campaigns for consumer brands including Rimmel, Reebok and Vivo. He owns your scope, budget and timeline end to end, and keeps the business case in front of every technical decision.

The founding team has run fraud prevention systems at the scale of millions of users, and our engineers average 5–7 years of senior experience.

What We've Learned Verifying Returns

Our team answers the questions e-commerce brands ask before adding a verification step: which fraud types matter, when to train your own model and how to protect loyal customers.

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How Much Return Fraud Is Hiding in Your Data?

Send us six months of returns and we will score a sample against our fraud signals. You will speak with a solutions architect, not a salesperson, and see the number before you commit.

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Frequently Asked Questions About Returns Verification