New Shopify Scam: Seems Scammers are purchasing low priced digital products and then running chargebacks or maybe just testing fake cards leading to fraudulent orders. Our brands using GoodAPI have two trees for $1 product and our customers are getting many fraudulent orders. I also saw Shopify Planet being affected on some orders through their reviews
We are going to looking into checkout validations API to block transactions that ONLY contain the tree product to reduce the pain for our brands
Anyone else see this issue? how are you tackling it
Hey Liam, No. didn’t reach out to them because… I didn’t think they could help me with anything. I looked at the customer’s complaints on the Shopify planet app where they had reached out to customer support and customer support had told them to install a fraud protection app.
Lol, we just build the fraud protection feature into our app
What you’re experiencing is most likely credit card testing.
This is when criminals are testing a sample of stolen credit cards they’ve either obtained from the black market or hacked from a payment processor/database of some kind.
These criminals are trying low ticket items to verify if the credit card details are still valid, and these lower amounts are less “noisy” for fraud detection systems.
The chargebacks you’re seeing are quite possibility “real” because the card holder truly doesn’t recognize them.
Use Shopify Flow to capture payment on the non-test orders automatically
When you disable automatic capture, if gives you time to review the order before actually capturing the funds from the card.
If an order is clearly fraudulent, there’s no refund to make and no chargeback risk because the payment was never captured in the first place.
I realize you’re integrating with many merchants, but you may want to advise this to them and offer perhaps an automated way to capture payment for the non-risky orders.
Thanks for the reply! We set up a checkout rul automation that they can enable which will prevent these smaller priced items from being bought on their own.
Manual review is quite cumbersome for customers who are doing thousands of orders so I am hoping this automation saves them a headache.
