Shopify Scams You Need To Avoid Today

shopify scams you need to avoid today

Of all the e-commerce platforms, Shopify is the most prominent by far. Not without reason. Thanks to platform sales in excess of $82 billion, Shopify is basking in the sunshine-support of 600,000 businesses. And more folk keep joining the party. Its merchant-friendly credentials beyond reproach, Shopify has drawn the attention of scammers. Shopify scam, therefore, is now a serious concern with merchants. We will now be taking a gander at Shopify scams you need to avoid today. 

Triangulation scheme 

The triangulation scheme has emerged as one of the most challenging Shopify scams to exercise the faculties of users and administrators. In the main, scammers set up an active Shopify store and go about publicising themselves as sellers of legit products. Subsequently, they purchase products from online suppliers, intermediaries in shipping the merchandise to clients’ addresses. The other moniker of this role is ‘dropshipping’.   

However, the merchandise is bought from the suppliers with stolen cards. The credit card company will rightly decide in favour of transduction rejection. A charge may well be initiated on Shopify. When a chargeback takes place, Shopify does not send the money back to the seller. Hence, they both are deprived of the product and the money. 

Shopify Store Duplicator scheme 

Scammers look for and find fairly new stores. Then, they make one with a similar domain name, , purporting to sell the selfsame genuine product. Diverse products have been thusly mirrored on similar web addresses. In an interesting instance, a merchant noticed a twin storefront. He dragged the platform to court for failing to bring the false storefront to his notice.

Consequently, Shopify added software tools that cost upwards of $30 and began offering monthly maintenance for merchants’ transactions. In addition, more tech teams were detailed to search and destroy fake storefronts. 

Switching scheme 

A serious challenge, this scheme leads to a long term loss with sellers. For example, a prospective buyer buys a product at your Shopify store and asks for an invoice from PayPal. The buyer will intimate that they are having problems with paying directly from the platform. You send them the invoice as asked. In response, you receive a notification purportedly from PayPal to the effect that the buyer has paid for the product.

What’s more, they are waiting for the product tracking number. PayPal checkout has the payment on hold till the tracking number is released to the buyer. So the PayPal notification is fake, the seller is duped, the buyer walks away with the products for free. 

Fraud prevention at Shopify 

When Shopify merchants receive an order, the platform immediately scans the transactions for fraud indications. Fraud prevention recommendations for a few Shopify plans are also offered. Merchants may conveniently assess their Shopify transactions for Shopify scams thru simple measures outlined hereunder. 

View the Shopify scam analysis 

Merchants will attempt searching for any order they think smells of Shopify scams, or ones that the platform has marked with an exclamation mark. The fraud analysis link on their order page permits merchants to reassess the fraud indicators for their order, made to stand out in three colours: green icons indicate that the highlighted matter is legit; red icons signify that the highlighted area represents fraudulent activity; grey icons indicate areas that need assessment to bear out an order’s legitimacy. 

Merchants have to be mindful that above-mentioned indicators do not reckon the likelihood of an order being a Shopify scam. Rather, they must enumerate the licit and illicit activity identified as a result of fraud analysis.  

View fraud recommendations

Merchants who use Shopify Payments or are on the Shopify plan or higher will see the fraud indicators, besides a fraud recommendation for each order. 

The recommendation categorises the chargeback risk of order as low, medium or high. Subsequently, it flags medium and high-risk orders on the Orders page. The insight that is deducible from this information is really helpful. 

The recommendations are developed when Shopify applies machine learning algorithms to its historical database for transactions. Fraud trends and patterns are thusly identified. In addition, for the purpose of protecting merchants from Shopify scam threats, the platform continually updates algorithms based on new fraud information and merchants’ reports.

The analysis of third party app recommendations for Shopify scam

In case a merchant has installed a third party fraud app, the latter’s transaction indicators and recommendations are shown under the Fraud Analysis Section. 

Dealing with high-risk transactions on Shopify

Not infrequently, high-risk orders are also approved. These may lead to expensive chargebacks. The Shopify Fraud Protect solution. Utilising complex algorithms for analysis and fraudulent order identification, Fraud Protect highlights an order as protected in the event of its detecting an at-risk transaction. Subsequent to Shopify filing a chargeback on that protected order, Shopify reimburses the merchant of the chargeback. 

Since the solution is not accessible to all right across the board, many merchants still require assistance in the prevention/winning of chargeback disputes. However, Shopify has taken steps to facilitate an appreciation in the chances of merchants winning chargeback disputes.  


Clients can file fraud chargebacks upon credit cards having been lost and illicit purchases having been made. To bolster their case, merchants must submit delivery proof akin to a signature on the delivery form or the signing individual’s details. Additionally, pertinent evidence should also be submitted if merchants can show that the cardholder has/is using the said merchandise. 

Purchase without recognition 

When the customer does not recognise the merchant’s description, or the billing statement transaction, they can file a dispute. Merchants may preempt the chargebacks by ascertaining the company’s description is easily accessible . The same is achievable by submitting transaction proof, email communications and order confirmations included. 

Duplicate purchases

A client charged twice for the same transaction may choose to vbo for a chargeback rather than calling customer service for a refund. If you, as a merchant, find that a client was billed twice for the self same product, you should immediately refund one of the transactions, notifying the client about the error. 

Periodical subscriptions 

Clients may not remember thor having signs up for a recurring subscription and has not taken note of the reminder notice . they might even erroneously believe they cancelled the subscription prior to the next billing cycle. 

In such an event, sidestep a chargeback entirely by rescinding the subscription with immediate effect. In their own best interest, merchants ought to give out their cancellation policies and subscription documentation. There ought to be proof at hand that the client agreed to both. For those unfortunate cases wherein clients claimed the cancellation of subscription and yet accessed/used products, merchants have to show proof of the latter. 

Product not received 

Clients may file a chargeback on a transaction upon claiming they did not get the products/ services they paid for. While it is true packages are now and then lost in transit, merchants may beef up their argument by the submission of tracking numbers, proof of delivery, shipping addresses, proof of downloading/access. In addition, merchants ought to supply clients with periodic shipping updates, with approximate delivery dates included. 

Product dissatisfactory 

The client alleges the product came damaged/defective/not as advertised. To the end of winning this kind of chargeback dispute, merchants ought to show images and descriptions that match the real physical product. In addition, the quality of packaging has to be ensured. 

Credit not issued 

There may arise circumstances the merchant does not issue credit even upon a chargeback following product return or order cancellation. The onus is on merchants to supply a cogent copy of their return, refund or exchange policy if they wish to contend that said return/cancellation was outside the purview of the relevant document. 


Chargebacks to the exclusion of all categories heretofore mentioned belong to the ‘general’ category. 

The particular chargeback reason code and the credit card issuer are the pertinent bits of information merchants ought to have clarity over to defend themselves with a measure of success. 


Shopify scams you need to avoid today may keep evolving. The platform is growing in strength. But, also, the Devil never sleeps. Shopify Scammers will find ways and means to better merchants trying to conduct honest business on the world’s most successful e-commerce platform. The formulations and recommendations addressing chargebacks are detailed. But, should they get even more complex, please do not hesitate to ask for help. Just drop a line at [email protected].

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