Black woman sitting at computer with pen and pencil.

Common Shopify Scams: Seller Beware - Top Shopify Chargeback Scams & Why They Happen

I think we're probably most vulnerable to these scams in the beginning of running our businesses. Especially around the first sales, when you're just excited people know who you are and you're able to prove your business idea works. 

But then the reality sets in when you see those high and medium risk fraud analysis orders.

So let's talk about it:

1. Stolen Credit Card Purchases

What happens:
A scammer uses a stolen credit card to place an order.

Why it's a problem:

  • The real cardholder files a chargeback once they notice the charge.
  • You lose the product and pay a chargeback fee (usually $15–$30).
  • With enough chargebacks Shopify may eventually freeze your account.

Red flags:

  • Different billing and shipping addresses.
  • Expedited shipping.
  • High-value or multiple items.
  • Generic email addresses (e.g., "abc123@gmail.com") that don't have any history when you search for them or that shopify identifies as being invalid. Sometimes your customer is just super private, I've had plenty of those and use alias addresses myself, but if you can't reach out to the customer for questions that's a red flag.

2. Friendly Fraud (a.k.a. "Buyer’s Remorse")

What happens:
A real customer makes a purchase, receives it, then disputes the charge with their bank claiming:

  • They didn’t authorize it.
  • The item never arrived.
  • The product wasn’t as described.

Why it’s common:

  • It’s hard to prove intention.
  • Customers don’t always contact the store first.
  • Some abuse the system, especially if the merchant doesn't require a signature or tracking.

3. Reshipping Scams

This is the one I get hit with most. My shop doesn't allow orders outside of the US. Usually, the bank information and credit card don't match the billing address and the "customer" is trying to ship to a US address.

What happens:
A scammer orders with a stolen credit card and ships to a “reshipper” address (often in the U.S.) who forwards it overseas.

Why it's a problem:

  • The product is gone.
  • The cardholder disputes the charge.
  • The IP address and shipping info often won’t match the billing info.

Red flags:

Check your Shopify Fraud Analysis

  • Use of package forwarding companies or addresses with “Suite” or “APT” numbers in known freight cities.
  • International email domains.
  • Generic email addresses.
  • International banks involved
  • Several customers and carts created and abandoned using the same shipping address with the same items in cart. 

4. Fake "Not Received" Claims

What happens:
Customer gets the item but claims it never arrived.

Why it's an issue:

If no tracking or signature confirmation exists, the bank often sides with the customer.

Prevention tip:

  • Always use tracked shipping.
  • Require a signature for high-ticket items.
  • Take photos of the items you pack.

5. Chargeback After Refund Delay

What happens:
Customer requests a return or refund but doesn’t wait for it to process, then they initiate a chargeback instead.

Why it happens:

  • Impatience or lack of communication.
  • They think it’s faster or more guaranteed through the bank.

How to prevent:

  • Communicate refund timelines clearly.
  • Send a receipt or screenshot showing the refund is pending.

6. Digital Download Fraud

What happens:
Scammers purchase downloadable products (e.g., art prints, ebooks), then file a chargeback saying they never got anything.
Why it’s tricky:

  • No physical tracking exists.
  • Digital goods are harder to dispute through banks.

Mitigation tip:

  • Log email delivery, IP address, and timestamp of download. 
  • Include terms & conditions or license use agreements.

7. Return Fraud / Empty Box Returns

What happens:
Scammer returns a package but it’s empty or filled with something worthless, and still demands a refund.


Why they do it:

  • To keep the item and get their money back.
  • Some even use tracking to fake legitimacy.

Prevention:

  • Document returns with unboxing videos for high-value items.
  • Require customers to use your prepaid return label.

Source: FreePik.com

✅ General Ways to Prevent Chargeback Scams

  • Enable Shopify Fraud Analysis.
  • Require AVS (Address Verification System) and CVV checks.
  • Match billing and shipping addresses.
  • Add signature requirement for orders over a certain value.
  • Use detailed product descriptions and clear refund policies.
  • Respond promptly to customer inquiries.
  • Pay for a Chargeback app like Signifyd, Kount, NoFraud, etc. 
Back to blog