A couple of weeks ago, Scott Tannen, the CEO of home goods brand Boll & Branch, noticed something strange about a recent customer service ticket. A shopper claimed a set of sheets had arrived torn and submitted photos as proof.
But almost immediately, Tannen sensed something was off. The rip didn’t resemble the way cotton actually frays, and one image even carried an artificial intelligence watermark. The “damage” appeared to have been generated by AI.
“They were just so blatantly AI that I couldn’t believe it,” Tannen said.
A review of recent tickets turned up a handful of other images that appeared to be AI-generated. Tannen later wrote about the experience in a LinkedIn post that drew 2,000 likes.
Fraudulent returns are nothing new. Online merchants have long dealt with shoppers who falsely claim items arrived damaged or went missing in transit, or who attempt to return clearly…
PROCUREMENT & EXPENDITURE (STOPPING KICKBACKS)
Procurement fraud usually involves inflated invoices or “fictitious” vendors.
- The Three-Way Match: Never pay an invoice unless you have matched the Purchase Order (PO), the Delivery Note (signed), and the Supplier Invoice.
- Vendor Master File Review: Review your vendor list annually. Look for suppliers with the same bank details or physical addresses as your employees.
- Dual Authorization: Implement a “Two-to-Sign” rule for all EFT payments above a certain threshold (e.g., R5,000).
- No “Cashing” of Checks: If you still use physical checks, strictly prohibit “Cash” as a payee and store blank checks in a dual-lock safe.