How fraudsters are using AI to create fake damage
Previously, when you received a product that was damaged, you could take a photo, send it to the seller, and they could send a replacement. However, in the age of AI, an image can be created incredibly easily, and at a very low cost. As such, businesses are seeing an increase in fraudulent claims with AI generated evidence. This evidence can then be used to make a claim that the product was damaged, so the buyer can keep the product and receive a refund.
This has been a huge issue for local and independent sellers, who are often at the mercy of their selling platforms. Even a single complaint or low rating can drastically affect their business, regardless of whether the complaint was made in good faith or not.
Insurance provider Admiral states that, ‘A commonly detected type of fraud Admiral sees is the digital manipulation of images, - with manipulated images of stolen or damaged items and fabricated documents being submitted on a regular basis. While a lot of these images are amateurish, claims handlers at Admiral say AI is increasingly being used to exaggerate insurance claims.’
Consumers that submit fraudulent returns put themselves at a huge risk. Insurance fraud is illegal, and can lead to your insurance policy being cancelled. It could even result in you facing legal repercussions and criminal prosecution.
How to submit a reliable refund request
If you’re sending a return, here are our tips to make sure that you get your refund as stress-free as possible.
If you’re sending a return, here are our tips to make sure that you get your refund as stress-free as possible.
- Pay with PayPal
Using PayPal adds an extra layer of protection on any purchases you make. PayPal’s Buyer Protection program means that if you don’t receive your order, or it is different when it arrives, PayPal can help you get your refund. Find out more about PayPal Buyer Protection here. - Take multiple photos
AI can sometimes make a single image that looks believable, but it finds creating something consistent very hard. When you’re submitting a request for a refund, take a number of different photos from different angles, to evidence that any damage is legitimate. - Return to sender
With the surge in AI generated images for fraudulent returns, don’t be surprised if your seller wants to receive the item back from you before they issue a refund. Be prepared to put your damaged product in the post. Always get a Proof of Postage, so that you have evidence that it was returned
Protecting yourself as a small business
Unfortunately, there’s not much that small businesses can do about the rise of fraudulent AI images in returns.
If you suspect that someone is using AI to create fraudulent damage on a product, you should ask for multiple angles of the damage. You could also prompt the buyer to include a piece of paper in the photo with something specific written on it; some AI image generation struggles to create realistic looking writing.
For sellers on Vinted, you could record a video of the product before it is sent, so you have evidence of the condition you sent it in.
If you suspect that someone is using AI to create fraudulent damage on a product, you should ask for multiple angles of the damage. You could also prompt the buyer to include a piece of paper in the photo with something specific written on it; some AI image generation struggles to create realistic looking writing.
For sellers on Vinted, you could record a video of the product before it is sent, so you have evidence of the condition you sent it in.
Make sure that your returns policy is clear and listed on your website, and includes the requirement to send back any products that are damaged.
