Amazon Venture Fund Backs Startup Developing Fix for Return Fraud

July 24, 2025

Amazon is turning to the startup world to find a potential fix for one of its thorniest logistics problems. Retailers of all sizes have in recent years struggled with an uptick in fraudulent returns. The scam involves shoppers requesting a refund, but instead of returning the merchandise, they keep the item and send back an empty package or a box of unrelated junk. It’s become a costly nuisance for retailers, accounting for $103 billion in losses last year, according to Appriss Retail.

Cambridge Terahertz, a Sunnyvale, California-based startup, has developed a 3D imaging system that can see inside unopened packages, enabling retailers to more easily and quickly spot cases of return fraud. The company has just closed a $12 million seed financing, led by venture firm Felicis, with participation from Amazon’s $1 billion Industrial Innovation Fund and other investors.

Read the article here: https://www.cnbc.com/2025/07/24/amazon-backs-3d-imaging-startup-cambridge-terahertz-return-fraud.html