Americans have entered the 2025 gift returns era after the Christmas holidays. CBS MoneyWatch correspondent Kelly O'Grady has more.

New York

The period following Christmas has seen a substantial increase in product returns across the United States, with December 26 showing a 25-35% rise compared to the previous week. This surge, often referred to as 'returnuary,' presents logistical and financial challenges for retailers, who must manage returned inventory and potential impacts on post-holiday sales.

In addition to the volume of legitimate returns, retailers are facing a growing problem with fraudulent returns, which account for roughly one in ten cases. To combat this, companies are implementing stricter return policies, requiring verified drop-offs, and utilizing artificial intelligence to flag suspicious activity and mismatched items.

Christmas returns season begins for millions of American shoppers

Come in tight. Let's be real. You hated, you hated at least one gift you got this holiday, right? Just tell the truth. It's just us talking. That's why it's return day. So shh. Everybody get ready. Retailers are getting ready. So let's go live to New Jersey and CBS News Money Watch correspondent Kelly O'Grady. Okay Kelly, it's just you and me talking. Nobody's watching right now. What did you hate? What are you returning? And what do the numbers when people go to that cash register to get the money or to get the credit say about the economy? Well now I'm nervous about the gift that I got you Reed. I love it. I'm wearing it. Go return it. No, you're gonna love it. I can say with confidence all of my gifts from my family and friends were great. Mainly an experienced gal so it's hard to return those. But that's not the case for everyone. The data shows that this stretch here over the next few weeks it is often called returnuary as we get into January. And December 26, so today, shows a 25 to 35% on average spike in returns versus last week. And so you're really seeing people immediately they get those gifts either they're getting that gift receipt or they're going back and they're exchanging. And this is a really tough time for retailers Reed because we know that that December rush, that holiday season, this is the Super Bowl for most of those retailers. But then they have to deal on the back end with a lot of people that don't like the gifts that they got or a lot of folks that bought multiple colors, multiple sizes, so that they could give an item and then say hey you know I have options for you or if that doesn't fit I'll just return that one, that extra one. So this is a really tough time and you know you have a lot of people that if they're not going to end up spending in January right a lot of those retailers that just got returns are not going to be able to offload that inventory. Well and I've also Kelly been reading about fraudulent returns it's happening more and more they hit businesses hard but it also trickles down to the American consumer does it not? So how are retailers trying to protect themselves knowing that there's that trickle-down effect? It does trickle down to the American consumer because you might see an item priced higher in the future in order to offset some of that fraudulent return or perhaps a stricter return policy. The logistics company Happy Returns you've probably used it in the past their CEO says that one in ten returns is fraudulent so maybe the item has been damaged or worn or an empty box just comes back. So a lot of these retailers Happy Returns, Amazon, you know the Gambit they're deploying a number of different strategies. One would be stricter return policies or fees so people you know are deterred from doing something like that or requiring people to drop off at a place like a UPS or a Staples and they'll have those bulk returns so there's a there's a person there that's verifying you're not giving an empty box. But then they're also utilizing artificial intelligence in a couple of different ways. One would be identifying if that address whether it's an email or a shipping address has been flagged for fraudulent activity in the past and looking at the difference in when you order the item and when you return the item right if you're doing it immediately it's going to trip wires for the AI and then finally at the processing hub the artificial intelligence scanner will look at the item and say you know is that what's in the retail catalog or in that online catalog and if it's not it is flagged as fraudulent. They're not at the point where they can tell if you've worn it and damaged it and then sent it back yet but Reed with the rate that artificial intelligence is developing I'm sure that's gonna come soon. I am sure it is as well. Kelly O'Grady nice to talk to you hope you had a wonderful holiday warm wishes to you and your family it's good to see you friend.

Somaliland, a territory of more than 3 million people in the Horn of Africa, seceded from Somalia more than three decades ago, but it hadn't internationally been recognized as an independent state by any country.

Somaliland

Israel becomes first country to recognize Somaliland

Some of the stabbed victims remain in serious condition. A 38-year-old man was arrested for alleged attempted murder at the factory, authorities said.

Mishima

At least 15 injured in chemical attack, stabbing at Japan factory

Israeli President Isaac Herzog said he was shocked by the "horrific killing spree" and pledged Israel would reinforce its security.

Jerusalem

Palestinian man kills two in car, knife attack in northern Israel

Munitions factories are expected to expand capacity and build new plants as the regime in Pyongyang intensifies weapons development and furthers its ties with Russia.

Pyongyang

Kim Jong-un orders North Korea to boost missile production in 2026

The United States launched airstrikes on Islamic State targets in Nigeria's Sokoto State on Thursday. Nigerian authorities denied Trump's claim of mass killings of Christians amid mixed reactions to the U.S. intervention.

Abuja

Nigeria confirms cooperation with U.S. strikes on IS targets

Ukraine's President Volodymyr Zelenskiy said on Friday (December 26) he planned to meet with U.S. President Donald Trump soon and that a lot could be decided before the New Year as Washington pushes diplomatic efforts to end the war with Russia.

Washington

Ukraine Invasion

Zelenskiy: 'A lot' can be decided before New Year ahead of Trump talk

The United States carried out airstrikes against ISIS militants in northwest Nigeria at the request of Nigeria's government, U.S. President Donald Trump and the U.S. military said on Thursday, claiming the group had been targeting Christians in the region.

U.S. launches 'deadly' airstrikes in Nigeria targeting ISIS: Trump

Official results show Asfura edged out his main rival Salvador Nasralla by less than one percentage point. Marred by delays and fraud claims, the Honduran election continues Latin America's shift to the right.

Tegucigalpa

Honduras: Trump ally Nasry Asfura wins disputed presidency

Several people were killed in Southern California when severe storms with heavy rain caused mudslides and flooding, which was made worse in areas affected by wildfires in January.

Heavy rain, flooding turns deadly in California

The U.S. Department of Justice says it has found more than a million more documents potentially tied to convicted sex offender Jeffrey Epstein, delaying a full release for weeks while officials redact details to protect victims.

DOJ reviews over 1 million newly found Epstein documents

Pope Leo XIV celebrated his first Christmas Mass Wednesday evening where he described the celebration as a feast of "faith, charity and hope". He reminded the faithful that refusing to help the poor and vulnerable is comparable to rejecting God altogether.

Rome

Pope Leo reminds believers to help the poor in first Christmas mass

Ukrainian President Volodymyr Zelenskyy signaled progress in a Ukraine-Russia peace plan, after he told journalists about a new draft that would include a free economic zone and demilitarization. Holly Williams has the latest.

Kyiv

Zelenskyy signals progress with Ukraine-Russia peace plan

Democrats and some Republicans are blasting the Justice Department over its handling of the release of files related to Jeffrey Epstein, which included major redactions.

U.S. lawmakers blast DOJ over Epstein files release

Bolsonaro is expected to undergo the procedure on 25 December.

Brasília

Brazil's ex-president Bolsonaro temporarily leaves prison for surgery

Two police officers have been killed in an explosion in Moscow, Russian investigators said on Wednesday. Their deaths come just two days after a car bomb killed a top general in the same area of the Russia capital.

Moscow

Three people killed in Moscow car explosion, Russian authorities say

European intelligence agencies say investigations into Russian interference now consume as much time as terrorist threats.

Paris

Pro-Russian hackers claim French postal service cyberattack

Ukrainian President Volodymyr Zelenskyy says his country and the United States have reached a consensus on several critical issues aimed at bringing an end to the conflict with Russia — but sensitivities around territorial control in Ukraine’s eastern industrial heartland and the management of the Zaporizhzhia nuclear power plant remain unresolved.

U.S., Ukraine reach consensus on some key issues to end war with Russia

The latest Epstein file release alleges a connection between former prince Andrew and Ghislaine Maxwell, including emails in which an individual identified as 'A' requested 'inappropriate friends.'

London

Latest Epstein release alleges new link to ex-prince Andrew

The US and Venezuela are in a war of words at the UN Security council following America's seizure of ships off Venezuela's coast. Venezuela's ambassador strongly condemned the U.S. actions, labeling them as extrajudicial executions and a military blockade intended to destabilize the country.

U.S., Venezuela in war of words at UNSC over military strikes

Two people are dead after an explosion at a nursing home in Bristol, Pennsylvania, and several are still missing, Gov. Josh Shapiro said.

Bristol

Two dead, several missing after nursing home explosion in Pennsylvania

A Delaware state trooper was killed Tuesday during a shooting at a Wilmington DMV, the Delaware State Police said. The state's governor confirmed the shooter is also dead.

Wilmington

Delaware state trooper killed in DMV shooting, officials say

The Supreme Court ruled on Tuesday that President Trump cannot deploy the National Guard troops to Chicago as a legal challenge moves ahead.

Supreme Court blocks deployment of National Guard to Illinois

The Justice Department released a new trove of documents from its investigation into convicted sex offender Jeffrey Epstein, including an email from a prosecutor indicating President Donald Trump had traveled aboard his private jet "many more times than previously has been reported."

Trump flew on Epstein jet 8 times according to newly released files

The Libyan army's chief of staff, Mohammed Ali Ahmed Al-Haddad, died in a plane crash after leaving Turkey's capital Ankara, the prime minister of Libya's internationally-recognized government said, adding that four others were on the jet as well.

Haymana

Libyan army's chief dies in plane crash in Turkey

Two men have been found guilty of plotting to kill hundreds in an Islamic State-inspired gun rampage against the Jewish community in England, a planned attack investigators say demonstrates the resurgent risk posed by the militant group.

Bolton

Two men found guilty of UK plot to kill Jews as IS fears grow

The FDA has approved the pill version of the weight loss drug Wegovy, the first oral medication of its kind. The new pills are expected to be available in a few weeks.

FDA approves Wegovy pill, first prescription pill for weight loss

French Parliament has approved the Stopgap Bill two days before Christmas. The budget bill now moves to French senate.

Parijs

French Parliament approves Stopgap Bill: Budget bill moves to senate

Russia fired more than 650 drones and three dozen missiles at Ukraine in a large-scale attack that began during the night and stretched into daylight hours Tuesday, officials said. At least three people were killed, including a 4-year-old child, two days before Christmas.

Kiev

Russia carries out massive drone attack on Ukraine's energy sector

The U.S. Department of Justice has released another batch of files related to convicted sex offender Jeffrey Epstein, including videos, emails and documents. CBS News' Scott MacFarlane reports.

U.S. Justice Department releases new trove of Epstein files

The leaders of Denmark and Greenland insisted that the United States won't take over Greenland and demanded respect for their territorial integrity after President Donald Trump ‍​announced ​the appointment of a ‌special envoy to the semi-autonomous territory.

Breakdown