Appriss Retail and Optoro expand partnership to combat rising returns fraud across retail channels

In a strategic move to address the growing crisis of returns fraud, Appriss Retail, a global leader in data-driven loss prevention solutions, has announced an expanded partnership with Optoro, a technology innovator in retail returns management. This collaboration is designed to provide retailers with a comprehensive, AI-powered approach to returns fraud prevention, enhancing operational efficiency while protecting profit margins across online, in-store, and omnichannel environments.

The timing of this partnership is critical. According to the 2024 Consumer Returns in the Retail Industry Report by Deloitte and Appriss Retail, fraudulent returns and abuse resulted in over $100 billion in losses last year. With returns fraud increasing by 300% over the past four years, retailers are under immense pressure to find scalable, effective solutions that safeguard revenue without compromising the customer experience.

Together, Appriss Retail and Optoro are offering a robust, integrated system designed to detect, prevent, and manage fraud seamlessly across all consumer touchpoints.

Why Is Returns Fraud a Growing Threat for Retailers?

The evolution of e-commerce, combined with increasingly flexible return policies, has created new opportunities for bad actors to exploit weaknesses in retail systems. Returns fraud can take many forms, including receipt fraud, wardrobing (returning used items), and returning counterfeit goods. As retail transactions span digital platforms, physical stores, and third-party logistics networks, fraud detection becomes more complex and challenging.

“Wherever a retailer engages with a consumer, Appriss Retail is there to protect transactions against fraud and abuse,” said Michael Osborne, CEO of Appriss Retail. “Our partnership with Optoro enhances that capability, enabling retailers to provide a consistent, frictionless return experience while reducing vulnerabilities to fraudulent activity.”

This partnership aims to tackle fraud at its roots, using advanced data analytics and machine learning algorithms to detect suspicious patterns across diverse sales channels. The ability to identify fraudulent activities in real time helps retailers not only mitigate immediate losses but also develop long-term strategies to strengthen their security frameworks. As fraudulent tactics evolve, this proactive approach ensures that retailers remain a step ahead, minimising risks before they escalate into significant financial threats.

How Does the Appriss Retail-Optoro Partnership Strengthen Returns Fraud Prevention?

At the core of this partnership is the integration of Appriss Retail’s fraud detection technology with Optoro’s returns management system (RMS). This combination allows retailers to benefit from a 360-degree approach to fraud protection, covering every stage of the returns process—from initiation to final disposition.

Appriss Retail’s platform leverages over 20 years of retail data science expertise, with an omnichannel intelligence network that monitors transactions across 150,000 locations in 45 countries. The company’s technology is trusted by more than 60 of the top 100 U.S. retailers, representing 40% of all U.S. omnichannel sales. This extensive data network helps identify fraudulent behaviors by analysing transaction histories, return patterns, and customer behaviours in real-time. By providing retailers with actionable insights, Appriss Retail empowers them to make data-driven decisions that not only prevent fraud but also enhance overall operational efficiency.

Meanwhile, Optoro’s modular RMS optimises the returns process, enabling retailers to manage returns efficiently while identifying potential fraud risks. Its AI-driven returns software reduces the time it takes to restock returned products, minimises backlogs, and improves inventory management. Optoro’s technology is already in use by major brands such as Gap, American Eagle Outfitters, Steve Madden, and Best Buy, demonstrating its effectiveness in high-volume retail environments. By streamlining the entire returns lifecycle, Optoro not only reduces operational costs but also improves customer satisfaction by ensuring faster, more reliable service.

“Savvy retailers know that managing returns effectively is critical to protecting their bottom line,” said Amena Ali, CEO of Optoro. “With the surge in returns fraud and abuse, our collaboration with Appriss Retail equips brands with the data insights and advanced technology needed to combat fraud while fostering strong relationships with loyal customers.” This strategic alignment reflects the growing recognition that fraud prevention and customer experience are not mutually exclusive but rather interconnected priorities for modern retailers.

What Are the Key Benefits of This Cross-Channel Fraud Protection Solution?

The joint solution from Appriss Retail and Optoro offers several critical advantages for retailers navigating today’s complex returns landscape. By combining data from digital, in-store, and third-party sources, retailers gain a holistic view of customer behaviours, enabling early detection of fraudulent activities. The integration of their technologies ensures seamless implementation, allowing retailers to protect their operations without the need for complex, time-consuming overhauls of existing systems.

Pre-built integrations reduce implementation time, ensuring that fraud protection measures can be deployed quickly and effectively. This efficiency is particularly valuable for large retailers with extensive operations, as it minimises disruptions and allows them to maintain business continuity while enhancing security. Additionally, the combined solution helps improve profit margins by minimising fraudulent returns and streamlining operations. By reducing financial losses associated with fraud, retailers can reallocate resources to growth initiatives, driving long-term profitability.

Despite the focus on fraud prevention, the partnership ensures that honest, loyal customers continue to enjoy smooth, hassle-free return processes. Appriss Retail’s solutions work in the background, analysing data silently without adding friction to the customer journey, while Optoro’s user-friendly returns portals maintain high customer satisfaction levels. This balance between security and convenience is critical in today’s competitive retail environment, where customer loyalty is often influenced by the ease of returns and exchanges.

How Is Technology Driving the Future of Returns Management?

The Appriss Retail-Optoro partnership underscores a broader trend in retail: the shift towards AI-driven fraud detection and data-centric decision-making. As fraudsters become more sophisticated, traditional manual review processes are no longer sufficient. Retailers need scalable, intelligent systems capable of identifying threats in real time.

Moreover, the rise of omnichannel commerce means that fraud can occur across multiple platforms simultaneously. A return initiated online may be completed in-store, or vice versa, making cross-channel visibility essential for effective fraud prevention. The ability to track transactions across all touchpoints provides retailers with the insights needed to identify anomalies and address potential threats before they impact the bottom line.

“Our combined cross-channel integration will provide retailers with increased value in their overall returns process,” Osborne noted. “By reducing fraud, improving operational efficiency, and enhancing customer experiences, we’re helping retailers thrive in an increasingly complex market.” This commitment to continuous improvement reflects both companies’ dedication to innovation and their recognition of the evolving challenges facing the retail industry.

What’s Next for Appriss Retail and Optoro?

As returns fraud continues to evolve, Appriss Retail and Optoro remain committed to developing innovative solutions that address emerging threats. The companies plan to expand their partnership by incorporating new data sources, refining fraud detection algorithms, and offering more customisable solutions tailored to specific retail segments.

Retailers looking to future-proof their operations against fraud will find this partnership a valuable asset, offering both returns fraud prevention and operational efficiencies that drive long-term success. The collaboration represents not just a response to current challenges but a proactive strategy for anticipating and mitigating future risks. By staying ahead of industry trends and leveraging the latest technological advancements, Appriss Retail and Optoro are setting new standards for fraud prevention and returns management in the retail sector.