Shopify

6 min read

25 Sep 2024

Are Shopify Stores Legit? 5 Common Shopify Scams and How to Avoid Them

If you've been thinking about starting an eCommerce business and selling on Shopify, you've probably asked yourself, "Are Shopify stores legit?"

Shopify is a trusted platform used by millions of entrepreneurs. As of 2024, Shopify powers over 5 million stores globally.

Like any online marketplace, it's not immune to scams. Unfortunately, some of these scams don't target buyers, but sellers like you.

Whether you're already running a store or just setting up, it's crucial to understand how to protect yourself and your business. Let's dive into five common Shopify scams and how to avoid them.

Top 3 Reasons Why You Should Trust Shopify
Phishing Scams
Fake or Duplicate Stores
Triangulation Fraud
Return Ticket Fraud
Fake Purchase Orders

Top 3 Reasons Why You Should Trust Shopify

Before we dive into the scams, let's talk about why Shopify remains a trusted platform.

1. SSL Certificates

Shopify ensures all stores are secured with SSL certificates, keeping transactions safe and secure. SSL encrypts sensitive data like credit card information, giving both buyers and sellers peace of mind.

2. PCI DSS compliant

Shopify complies with PCI DSS (Payment Card Industry Data Security Standard). This means that all Shopify stores follow strict guidelines to keep payment data secure. Sellers don't need to worry about mishandling sensitive information, as Shopify has already taken steps to protect it.

3. Regular Updates and Support

Shopify continually updates its platform to stay ahead of security threats. Plus, their 24/7 support team is always available to help sellers. This gives store owners confidence that their business is being protected behind the scenes.

However, while Shopify is a secure platform, scammers are always finding new ways to trick sellers. Let's discuss the five common Shopify scams you should watch out for and how to avoid them.

Phishing Scams

Phishing scams are getting more common and sophisticated. Scammers often pretend to be Shopify support or even your payment processor.

They send emails asking for your login details or payment info. Sellers who aren’t cautious might unknowingly hand over sensitive data, giving scammers access to their store or financial accounts.

How to Avoid It:

Double-check emails: Always verify the sender’s email address. Shopify and payment processors won’t ask for sensitive information like passwords through email.
Two-Factor Authentication: Enable two-factor authentication (2FA) on your Shopify account to add an extra layer of security.
Stay Updated: Be aware of common phishing tactics and regularly review Shopify’s security guidelines.
Avoid Clicking Links: Never click on unfamiliar links in emails. Instead, go directly to the Shopify website or a trusted source through your browser.
Check for Typos: Phishing emails often have small spelling or grammar mistakes. Legitimate businesses will rarely send out emails with these errors.

Fake or Duplicate Stores

Another scam you might face as a Shopify seller is someone creating a fake version of your store. These scammers will copy your website's design, images, and products and then set up their own shop.

To an untrained eye, it looks identical to yours. They might trick customers into making purchases, stealing your potential sales and reputation.

How to Avoid It:

Regularly Search for Your Brand Name: Do a quick Google search of your store name to see if any duplicates pop up. This can help you spot a fake store early.
Report the Fake Store: If you find a copy of your store, report it to Shopify immediately. They will take steps to shut it down.
Trademark Your Brand: Registering a trademark for your brand can give you legal protection if someone tries to copy your store.

Triangulation Fraud

Triangulation fraud is a more complex scam that involves three parties: a scammer, a legitimate store (you), and an innocent buyer.

Here’s how it works: the scammer lists your products on a third-party website at a lower price. When a customer orders from the scammer, they use stolen credit card information to buy the product from your Shopify store, shipping it directly to the buyer.

This leaves you vulnerable to chargebacks when the real cardholder notices the fraudulent charge, resulting in lost revenue.

How to Avoid It:

Use Shopify’s Fraud Analysis Tools: These tools flag suspicious orders and help you decide whether to process or cancel them.
Require CVV and Address Verification: These extra security steps can help ensure that the used credit card matches the buyer’s information.
Be Cautious with Large Orders: Orders that seem too good to be true or come from new customers in bulk could be a red flag.
Require Verification for High-Risk Orders: Consider adding extra verification steps for large or unusual orders, like verifying the buyer’s phone number or address.
Monitor Chargeback History: Keep an eye on any patterns of chargebacks to catch potential triangulation fraud early.

Return Ticket Fraud

Return ticket fraud is another scam that can hit sellers hard. In this scheme, a buyer orders a product from your store and then claims it was damaged, defective, or not as described.

They request a refund, but instead of returning the original product, they return an empty box or a counterfeit item. You’re left with no product and no sale.

How to Avoid It:

Clear Return Policy: Have a well-defined return policy that includes return conditions, such as requiring original packaging and product inspections.
Use Return Shipping Labels: Provide prepaid return shipping labels so you can track the item’s return and ensure it comes back to you.
Inspect Returned Items Carefully: Before issuing a refund, carefully check the returned product to ensure it’s the same item and in the same condition you shipped it.
Require Proof: Ask customers to provide photo evidence of the issue before accepting a return request.

Fake Purchase Orders

Fake purchase orders are another scam targeting Shopify sellers. Scammers might contact you, pretending to be a legitimate buyer interested in bulk purchasing.

They’ll ask for a special discount or favorable payment terms, convincing you to ship the items before receiving payment. Once the items are shipped, the scammer disappears, leaving you without payment and your inventory gone.

How to Avoid It:

Request Payment Upfront: Always ask for partial or full payment before processing large or custom orders, especially if the customer is new.
Verify the Business: Take time to research the buyer or company, especially for large orders. Check their business history, reviews, or even call them directly.
Be Cautious with Discounts: Don’t offer significant discounts or favorable payment terms until you confirm the legitimacy of the customer.
Use Secure Payment Gateways: Make sure all payments go through secure and trusted gateways to avoid processing fraudulent transactions.

Protect Your Shopify Store from Scams

So, are Shopify stores legit? The answer is yes—most Shopify stores are trustworthy and legitimate. But even if eCommerce is legit and Shopify is a trustworthy platform, it’s important to stay informed and protect yourself from scams.

By understanding these common seller-targeted scams and knowing how to avoid them, you can confidently run your store without fear of fraud. Shopify offers a secure platform, but staying vigilant and proactive is key to maintaining a safe and successful business.

If you're looking for more ways to grow your online store, check out these lucrative business ideas to inspire your next venture.

Author

Rhea Diamante

Rhea Diamante is a copywriter at Debutify, where she crafts compelling and engaging content. With a knack for storytelling and a keen eye for detail, she ensures every piece she writes resonates with the audience and drives results.