In China, AI-generated images have led to an alarming increase in fraudulent return requests on e-commerce platforms, with the cosmetics industry being the most affected.

This problem started with isolated manipulations in the field of toys and clothing, but has now expanded in a coordinated manner into the cosmetic sector, where large order volumes and low margins make them vulnerable. The brand Flower Knows was one of the first to report return requests without returns, supported by AI-generated images. The use of these AI tools, which were initially used for content creation and diagnostics, has been diverted to commit fraud. Merchants are facing economic challenges as contesting return requests becomes costly. Additionally, consumers must face stricter proof requirements, complicating the return process. This situation generates an erosion of trust between sellers and buyers, and platforms need to improve fraud detection systems to restore confidence in e-commerce.