Clarity Systems, a retail fraud detection company, today announced the close of a $4.4 million seed round backed by LMnT Ventures, with participation from Regeneration VC, Humba Ventures, and Massive Technology Ventures. The Company’s system sees inside returned and received products in three seconds without having to manually open them - catching counterfeits, product swaps, and manipulation by comparing items or potential fraudulent items against the original manufacturer profile.AI-powered technology helps retailers detect returns fraud in three seconds or less without opening the box. Clarity enables retailers to verify the contents of returned and received products, without opening the package. Similar to how an airport X-ray scanner identifies the contents of luggage without unpacking it, Clarity's system analyzes the product, and instantly detects anomalies such as counterfeit goods, product swaps, missing components, or other forms of return fraud.Clarity Systems was founded by Andy Ruben, Darrell Whitelaw and Sender Shamiss, seasoned veterans of the retail and returns industry, who recognized the immediate need for market changing innovation to address returns fraud, which continues to be one of retail's fastest-growing challenges. Within the year, Clarity has already signed on major national retailers in their returns and receiving operations.According to Appriss Retail and Deloitte, returns fraud costs retailers an estimated $103 billion in 2024, representing more than 15% of all returned merchandise. In response, many retailers have implemented broad return restrictions that create friction for honest shoppers rather than precisely identifying fraudulent activity. Clarity offers a smarter approach, using AI to distinguish legitimate returns from fraudulent ones in seconds, allowing retailers to reduce losses while preserving a seamless customer experience.NoYesFundraising News14 Aug, 2026