Amazon has invested in Cambridge Terahertz, a California-based startup, through its US$1 billion Industrial Innovation Fund.

The startup specializes in 3D imaging technology that scans unopened packages to detect fraud and verify contents.

Retailers lost US$103 billion in fraudulent returns in 2022, and the startup’s tech helps verify package contents without opening them.

Cambridge Terahertz recently raised US$12 million in seed funding led by venture firm Felicis, with participation from Amazon and other investors.

This funding will assist Cambridge Terahertz in expanding its team and advancing its imaging system.

The investment aligns with Amazon’s Industrial Innovation Fund, which backs technologies that support its logistics operations.

Founded in 2023, Cambridge Terahertz initially focused on detecting concealed weapons and now serves industries including aerospace and medical logistics.