Case Study: Everlane blocks return fraud with Happy Returns and AI-powered Return Vision™

Everlane stops $30,000-$40,000 in fraudulent refunds per month with Happy Returns

Everlane, a direct-to-consumer fashion retailer, faced a growing challenge with sophisticated return fraud schemes, particularly with mail-in returns. They were being purposefully targeted by organized groups, leading to significant financial risk. Everlane partnered with Happy Returns to address this issue using their Return Bar® network and AI-powered Return Vision™ technology.

Happy Returns implemented a layered fraud prevention system for Everlane. This included in-person item verification at Return Bar® locations, behavioral risk scoring to flag suspicious activity, and AI-powered Return Vision™ audits to confirm product matches. This solution stopped $30,000-$40,000 in fraudulent refunds monthly and confirmed 18% of flagged returns as fraudulent. Each caught instance of fraud prevented an average loss of $240, delivering clear financial protection.

Everlane