Bricks & Burnt Candles, Preventing Return Fraud: Racklify Talks with Two Boxes

Preventing Return Fraud: Racklify Talks with Two Boxes at Manifest 2025

At Manifest 2025, one of the premier supply chain and logistics conferences, Racklify sat down with Evan Stalter, co-founder and CPO of Two Boxes, to discuss one of the biggest challenges facing e-commerce and 3PLs today—return fraud. From fake tracking IDs to customers sending back bricks instead of actual products, fraudulent returns are costing businesses billions annually.

The Growing Problem of Return Fraud

Returns fraud has become a major issue for retailers, e-commerce sellers, and third-party logistics providers (3PLs). Fraudulent tactics include returning counterfeit or used goods, faking tracking information, and abusing return policies to get full refunds without actually sending back legitimate products.

“We’ve seen people return burnt candles, dirty underwear—things you’d never expect,” said Stalter. “There are also people who manipulate shipping labels, so packages get delivered somewhere else while still triggering a refund.”

How Two Boxes is Fighting Back

Two Boxes, a technology-driven returns management platform, provides solutions to help brands and logistics providers prevent return fraud and abuse. One of their key tools, X-Ray, helps businesses verify returns before issuing refunds. By scanning packages at the returns receiving location, Two Boxes creates an audit log of returns, ensuring fraudulent claims can be disputed with concrete evidence.

“This tool acts as a true receipt scan,” Stalter explained. “If a package isn’t physically received, you know right away. That’s a game-changer when dealing with claims where customers insist their return was delivered.”

Key Takeaways for 3PLs and E-Commerce Sellers

During the conversation, Stalter offered practical tips for businesses to protect themselves from fraudulent returns.

“The number one thing businesses can do is not process refunds until they physically have the item in hand,” Stalter emphasized. “Many companies refund as soon as a carrier marks a package as delivered, but that’s a huge risk. You have no guarantee that the actual item was returned.”

By requiring items to be verified before issuing refunds, businesses can significantly reduce fraud-related losses.

The Role of Manifest 2025 in the Future of Logistics

Manifest 2025 brought together industry leaders, technology innovators, and logistics experts to discuss the future of supply chain management. With return fraud on the rise, solutions like Two Boxes’ X-Ray tool are becoming essential for retailers and fulfillment centers looking to improve their returns process and protect their bottom line.

About Two Boxes

Two Boxes is a returns management platform that helps brands and 3PLs streamline their return process from warehouse receipt to back-to-stock. The company is trusted by leading logistics providers and e-commerce brands to reduce return fraud, increase inventory recovery, and enhance operational efficiency.

For brands, Two Boxes provides faster inventory restocking, better fraud detection, and real-time insights into quality defects and returns trends. Its integrated dashboard helps businesses prioritize high-value returns and improve customer service efficiency.

For 3PLs, Two Boxes enables returns processing up to 2x faster, digitizes standard operating procedures (SOPs) to reduce training time, and maximizes visibility into return data. The platform also ensures accurate chargebacks for value-added services, helping 3PLs recapture lost revenue.

With over 817,000 return units processed, a 50% reduction in return processing time, and a 17% increase in inventory recovery rates, Two Boxes is transforming the way businesses handle returns—turning returns into an asset, rather than a liability.

For more insights from Manifest 2025 and the latest trends in e-commerce logistics, stay tuned to Racklify News.