Ecommerce Scams

Ecommerce Scams

Ecommerce Scams

What Is Ecommerce Scam

What is an eCommerce scam and how do you know if you are involved in one? eCommerce, a relatively new online retailing platform, has seen its fair share of fraudulent activity in the past few years. The large volume of online financial transactions made by eCommerce is unfortunately attracting unscrupulous criminals all over the world, with various scams of all different sizes occurring.

Ecommerce scams primarily exist in two forms. In one type you will find people who ask for money upfront to help you launch your website and make it successful. They give you advice on marketing tactics, technicalities and try to sell you on the latest 'buzz words'. The other type of scam takes a more devious form. These people will disappear after you have sent them your credit card details and expect your business to skyrocket overnight.

The first step in preventing yourself from falling into the arms of a shady eCommerce company is to research the company thoroughly before you deal with them. Do not sign up to any eCommerce site until you've done your homework. There are plenty of forums and review sites out there where you can do some research in detail. This will allow you to find the best ecommerce solution for your business and steer clear of any potential scams. Remember, do not trust your credit card information to just anyone.

Common E-commerce Scam

Common ecommerce scams are a topic that has been brought up time and again over the internet, and with good reason. If you do decide to go into the world of ecommerce, then there is no denying that it is going to cost you some money. However, one of the best ways that you can avoid spending too much money when getting started is by being aware of any scams that may occur. There are several different signs that you can look for when it comes to these scams, but one way that you can make sure you don't get scammed is by researching any company that you are thinking of doing business with. It doesn't matter what type of site you are starting out on, if you aren't aware of any of these scams you will be at a severe disadvantage.

One of the most common eCommerce scams involves the so called 'chargeback'. A chargeback is when a customer decides that they have been scammed, and that they want their money back. This usually takes place either through email, or via other ingenious ways such as a fake website. If a customer thinks that a credit card company has run into a problem, and that the situation is not resolved properly, they will often try to get their money back by claiming that a certain product was defective, and was not sold properly to begin with.

Another common eCommerce scam involves 'front-end support'. If an online merchant is trying to process credit card payments, but there are problems along the way, the customer will often complain about not receiving their money on time, and will usually try to contact the company about a 'front-end' problem. The problem with this type of scam is that the credit card company does not really care about the 'front-end' support being offered, all that they are interested in is getting paid, and will often contact the company that they are working with in order to receive payment.

Account Takeover

The most common ecommerce scams that are perpetrated online involve purchasing a large amount of stock that is not in the owners account or otherwise claiming to have exclusive rights to the item. This is because they don't have the funds to keep holding on to it would appear as though they have risen from the dead in some magical manner. While this type of fraud can be dangerous and make you look like a con artist, there is a way to protect yourself against it, and that is to prevent them from contacting you in the first place. Make sure that any company that you purchase stock from has a secure shipping method and is using a white label, so that your information is protected. Most legitimate companies will have a secure order page, which will require you to provide your credit card information before they release the product.

Another common ecommerce scams include buying a large amount of stock that you won't actually need. This includes things like furniture, clothes, and electronics as well as large ticket items such as a yacht or a plane. This is another scam, which makes you think that you're getting the best deal possible without actually giving you the item that you want. It's important to only buy these items through trusted ecommerce websites and to make sure that you read all of the fine print so that you are completely aware of what you're agreeing to.

If you have any doubts about an online business that you are thinking about purchasing, then you should always check with the Better Business Bureau to find out if there have been any reports filed against it. You should also do a little research into how long the company has been around, and what kind of customers they have. These are all very important factors to consider so that you know whether or not an ecommerce website is trustworthy or not. Remember that the success of your business does depend upon your credibility, and if a customer decides to go somewhere else just because you were 'not good enough' for them, then you will never see success. So be careful and take your time when looking at business opportunities, and you should be able to find a great way to make money on the internet.

Identity Theft

If you are running an online store then you should be aware of the fact that there are many ways to identify theft-common ecommerce scams. These include the ecommerce site's security measures, the quality of the products and services being offered and the manner in which transactions are carried out between you and your customers. All these areas are prone to becoming victims of online fraud. However, if you are a victim then there are a few things that you can do to help yourself out.

The first step that you should take is to inform the credit card company and the bank about the fraudulent activity on the website. This will help them get in touch with the fraudulent activity provider and stop it dead in its tracks. Another step that you should take is to cancel all kinds of credit cards that you have used on the website. By doing this you will be helping your company to safeguard itself from fraudulent activity by a large percent.

Once you have done all this, you need to inform the website's visitors about the fraudulent activity and request them to make a transaction with you. You should also inform them that the transaction would be held at risk for a certain amount of time. This will help the people to remember that they should wait at least twenty-four hours before making a transaction with you. By doing this you will be greatly reducing the chance of fraudulent activity happening on the website. If you do not follow these steps then chances are very high that you may end up losing a lot of money due to fraudulent activity.


When you are doing your research on a business that offers returns, you should be very wary. You see, when you purchase something through a merchant's site, and then you don't like what you got, and you want a refund, chances are that the merchant will simply have you send the money back via a credit card or a mail order, without offering you a chance to try the product out before you part with your cash. While this may seem like a good deal, it's actually one of the easiest ecommerce scams to fall victim to, since most merchants won't actually give you the opportunity to try the product out, and will just disappear after providing you with the necessary information.

Another common returns scam is when a merchant offers to refund your sales taxes, which you are assumed to owe, because you didn't receive a receipt. This is yet another example of how easy it is to fall victim to ecommerce scams. In the beginning, it is very likely that you will be given an item to try out, which is then shipped to you without your knowledge or permission. You will then be expected to return the item, but in reality, you have already been hit with your first refund.

The final, and probably most harmful, type of returns scam is when a merchant takes your money and does not deliver the merchandise. If the product arrives damaged or something else wrong with it, you are required to send it back, and the seller will charge you for the cost of returning the item. Even if the product arrives damaged, you are still required to send it back to the seller. After all, the last thing that you would want is to be saddled with yet another shipping cost, only to have your return evaluated by the Post Office and then forced to pay for yet another package to get it back to you.


Chargebacks Common eCommerce scams are the second biggest reason why many sellers do not have a successful online business. A Chargeback is when a buyer fails to receive the product he paid for within 30 days of payment. Although it is difficult to recover from a chargeback, there are ways to increase your chances of getting your money back. One way is to make sure that you do not accept credit cards for payment. If you accept all major credit cards and make your customers understand this before they purchase, you will have a much higher success rate at recovering from a chargeback.

Another way to increase the chances of recovering from a Chargeback is to never accept more than one credit card at a time, especially if you are accepting multiple payments from the same customer. It is easy for a customer to just hold his breath and wait for the money to come into his merchant account while filling out his order form. While this method may be successful for a moment, the customer may not be able to process the refund request and you will be charged an additional fee by the credit card company for processing the chargeback request. This added fee could quickly become a large fee that could negate the benefit of the sale.

The most common ecommerce scams are those where the seller does not give the customer any options on how his sale will be processed. If the product is listed on the page with a guarantee or a written guarantee that the item will be delivered within a certain number of days, the customer should be given that option. If you have a live chat option, you should always have a live chat link that the customer can click on and ask questions. If the item is listed as shipping on a shipper's website, the customer should be able to place his order and have it shipped directly to the customer. If you do not offer these options to your customers, then you are wasting their time and making them think that they won't have a choice in the matter.

Mobile Fraud

The number of people that fall victim to fraudulent activities on the Internet is staggering. Commonly, these fraudulent activities involve 'phishing' where someone emails a link to an affiliate product in hopes that the user will download it and then purchase it. Other fraudulent activities include hacking into a computer to obtain personal information, like a credit card number, and using false identification to apply for legitimate banking accounts. However, the most common scam involves fraudulent activity that occurs over the phone. This is perhaps the most dangerous since the victim doesn't know that he has been scammed until it's too


There are many ways that you can protect yourself from mobile phone fraud. First, when purchasing online, make sure that you have the phone on you at the time of purchase. If you are purchasing something using a credit card, be sure to look at the amount of credit available and the symbol used for verification. If it is the wrong symbol, always use a credit card or pay using a debit or electronic check rather than a credit card. When paying with a phone, never enter the payment information over the telephone as this is where scammers can perform the transaction for you. Always use the secure portion of the phone to enter payment information and never publish your phone number on the Internet without your consent.

Mobile fraud is rampant and it can really cost you if you don't protect yourself. The most important thing to do is to invest in a mobile phone and monitor your bills. If you notice any unusual charges or fees, contact your service provider immediately to investigate the charges. Additionally, if you are purchasing goods or services online, be sure to use PayPal which is one of the most secure payment systems on the web. If you keep your eyes open and monitor your spending habits, you can avoid falling victim to fraudulent activities associated with your mobile phone.

Bank Transfer Fraud

One of the more common ecommerce scams that can occur is when an online business is trying to facilitate a transfer of funds from one bank account to another. Common schemes include an offer for a 'race to wallet service,' a request for information such as bank routing numbers, or even the request for a credit card number to be verified. The first sign that an online transfer might not be right is if the online company does not have a physical office or if the office does not actually exist. These are all indicators that the business isn't part of an international network and could lead to problems down the line.

In order to protect against these kinds of transfers, it's best to deal with reputable companies that have branches in the country you're dealing with. Even then, there might still be problems. Companies like PayPal have been slow to update their security features and process payments for certain countries. This makes it harder for an international transaction to go through. If the company you use is part of the Money Transfer Act or something similar and does provide an International Money Transfer Service, make sure to report any suspicious activities to the relevant authorities.

The next thing to do if you think your money is going to someone overseas but isn't is to check the details that you've provided. For instance, you may want to look up a current address for the person sending the money. Also, you should check any previous addresses listed for that person online. This way, you can find out whether the person is being honest about where he lives. It's also a good idea to report the transfer to the Better Business Bureau, the government agency that helps protect consumers from fraud.

Protecting Yourself From Ecommerce Fraud

If you are considering entering the world of eCommerce, it is important that you understand the importance of protecting yourself from ecommerce scams. Scams can come in many forms, but typically they involve some sort of download, or attempt to 'get your money back' through a money order refund. First and foremost, if the site you are visiting has anything resembling a scam or website on it, you should probably think twice about ever giving them any of your personal information. Second, there are plenty of ecommerce sites on the Internet that are legitimate, and can provide you with products and services that you may be interested in purchasing.

You should also be cautious if you happen to notice some sort of spam on the site. Be careful, because there are a number of sites out there that will try and trick you into thinking that you already have something that you want, when you do not. These scam sites will often disguise their email messages as emails from your actual shopping site. It is important to note that scammers will not waste time or money in sending you 'real' information from your site. Asking your customers for their names and email addresses will give you a much better idea of whether or not the 'sender' is actually legitimate. Also, if you happen to notice the 'scam' messages regularly, then it may just be a good idea to move on to another eCommerce site.

If you ever come across a site that does seem questionable, then you can report the business to the Better Business Bureau. They have a listing of every eCommerce site that is on the Internet and can tell you quite quickly whether or not a site is legitimate. This is particularly important if you choose an auction site, because there is no way to know what the seller's reputation is like before you buy from them. If the site you purchase from is in anyway related to online scams, then you may want to pass on the transaction and look for a different site. Even if the site is legitimate, it is better to be safe than sorry.

Email Account Phishing

Email account hacking is an increasingly popular way for identity thieves to use your personal information. It's hard to protect yourself from someone who has your social security number, credit card numbers, and bank account numbers. In addition, many people who use online banking have their bank account numbers saved on computer files, which are available to anyone with internet access. In fact, that's exactly what happened to me a few years ago. I had forgotten my password and didn't realize it until months later when I tried to use the ATM to withdraw cash for the first time since losing my old one.

Phishing is where hackers send fake emails to people's email accounts, promising to help them solve a problem, only to deliver a fake download that installs a key logger program onto the computer. This key logger program monitors all types of websites, and records every keystroke that comes in and out of the victim's computer. After the user inputs their login and password, the key logger records all of their internet activity, including the types of websites they visit, and which items they click on. Once this information is on the computer, the hacker can easily determine the types of sites the user likes to visit, and if there is any type of payment or donation being made, they could make an association and use that to extract personal information from the user. While email account hacking might seem like just an email scam, it's actually more than that.

If you keep your email passwords secure and don't use the same password for all of your accounts, then you'll be much safer from phishing attacks. Make sure that you don't use your email address for anything that doesn't belong to you, and be careful of websites that ask for your social security number. Use strong passwords that include upper and lowercase letters, numbers and special characters, and don't use words or phrases that are commonly found on internet ads. If you keep these tips in mind, then you should be much better off when it comes to protecting yourself from email account phishing.

Triangulation Fraud

Recently there have been increasing reports of Triangulation Fraud-Ecommerce scams. There are several different ways these scams operate, each of which is designed to take advantage of an unsuspecting victim. The most popular method is the 'bait and switch' which is exactly what it sounds like. A victim who is looking for a particular product, such as cell phones, quickly discovers that he has to purchase a completely unrelated product first in order to receive the cell phone. The original victim continues to buy the bait and switch scams products until he receives his 'bait' which does not exist or is insufficient for his needs and then he becomes frustrated and disappointed and decides not to make a purchase.

Some other examples of Triangulation Fraud-Ecommerce include pre-paid credit cards, which have a very low spending limit and cannot be used to make purchases, phony checks that provide the appearance of being from a bank or other valid financial institution, telephone calls that seem to originate from a bank but are in fact made by someone else, or even an email with a convincing address. In many cases, victims become suspicious when they start receiving telephone calls or seeing check numbers that do not belong to their bank. They may also check their credit card statements repeatedly or discover charges on their accounts that they don't remember making. Once the victim figured out that fraudulent activity was taking place, he can report the company or individuals responsible for his unauthorized transactions to the appropriate authorities.

However, there are other ways for Triangulation Fraud-Ecommerce scams to work. One of the most common is the 'affiliate marketing' method, where a person can market goods and services for a company and get a commission for bringing business to them. For example, someone can set up a blog or website with information about a particular business and market products using an affiliate program. The person who is marketing the products will receive commissions from actual sales generated by visitors to the site. Although this sounds like a great way to earn money, it is important to remember that these commissions are often very small and it can be easy for an unscrupulous person to run up a large bill and misrepresent the company.


There are a lot of things that you need to know about search engine optimization and that includes how Pagejacking works. This is one of the newest methods that is used by scammers to get you to purchase their products or service in the hopes of convincing you that your site will rank highly in the search engines if they link you with their website. There is no SEO technique that is completely fool proof as long as you are doing the proper things to make sure your site does not get penalized.

The first step is always to ensure that there is a quality page ranking in the search engine results. Once you have this, there are several ways that you can protect your ranking. One of the things you can do is to make sure the keywords that you are using are the right ones. You do not want to be penalized because you used a keyword that was irrelevant to the page. Another way that you can protect your ranking is to avoid paying for inbound links from webmasters. If you are a part of an affiliate network such as ClickBank you will not have to worry about that because they will usually just pay you out for each of the sales you make which they will make by sending you a portion of the revenue from each of your clicks.

Pagejacking has been around for a while and is nothing new, the only thing that's new is the methods that scammers have found that are new and effective. It is best that you stay away from anything that promises you quick rankings and high profits just because you are using a search engine. Search engines will take time to figure out what your site is about and it is not easy for them to determine what your intent is. That being said if you are having some sort of problem such as having too many inbound links then it may be time to find a better solution. You should never pay for any link, whether it helps your ranking or not as this is a sign that you are being scammed.

Affiliate Fraud

Affiliate Fraud is a term used to describe any activity in which an affiliate is compensated or made a commission for selling someone else's product. Although there are many different variations of this activity, Affiliate Fraud can be broken down into two primary categories. The first is of a vendor paying an affiliate to promote another party's product on their behalf and the second is where an affiliate promotes and sells products that aren't real but have been promoted by the distributor on their behalf. This article will take a look at the more common type of affiliate fraud.

This is probably the most common form of Affiliate Fraud in which a merchant pays affiliates for every single sale that results from their advertisement. The way this works is that the affiliate has put up ads for a merchant's product and the merchant places their link in the ad. When a visitor clicks on the link and purchases the item, the affiliate is paid. Since the product isn't available anywhere else, the merchant then puts their own affiliate ID on the order so they can track who ordered what, thus keeping inventory of all the items in stock and making sure no one over orders.

This kind of Affiliate Fraud is pretty easy to Spot once you know what to look for. The most obvious sign of an Affiliate Fraud is if the website from which you've been directed goes to a sales page for a product that doesn't exist. If you find websites like this, you're probably dealing with a middleman and you should report them to the Better Business Bureau or other relevant authorities. Also, make sure you are working with legitimate merchants and only deal with companies that have legitimate addresses and contact information.


Signifyd is a multi billion dollar enterprise, which offers a free ecommerce fraud protection tool. This service, which is developed by Threat Intelligence International Ltd., allows businesses and organizations the ability to quickly identify any fraudulent transactions that have occurred. These types of attacks are not only taking place on websites; they are taking place in mailboxes as well as on social media sites such as Facebook. There are many ways that an attacker can obtain information that will aid in their cause. It is important for businesses to understand how this type of attack occurs so that they can be better prepared for it when it does take place.

One way that an attacker might get information from a website is to open a variety of accounts at different financial institutions, in order to obtain information that will be used to apply for credit cards or other forms of debit cards. The information gained from such accounts would include the business's name, address, and other pertinent information. Another method for gathering information that could be used to facilitate fraudulent activity is to monitor the business' web traffic. Many attacks happen because the website being attacked sends out 'spam' or unwanted emails. An ecommerce tool that Signifyd provides for monitoring your web traffic will help you determine whether there are unusual numbers of visitors to your site.

A third way that a fraudulent party might be able to get information from a website is to hack into the server and use 'shell' software to access data. Such attacks can be executed from a variety of locations, and often times they involve some sort of data that can be used to commit fraudulent activities. While it can be tempting to want to try to protect all of your customers' private information, it is often more appropriate to focus your efforts on one or two types of accounts that tend to be targeted most frequently. By limiting the amount of fraudulent activity that takes place on these accounts, you can better protect the interests of your customers while also reducing the impact of any potential security issues that arise from using the information that they provide to you in the course of doing business.


The Sift-Ecommerce Fraud Protection Tool is an online ecommerce solution that helps businesses in reducing the risks of accepting payments from buyers who try to make fraudulent transactions through credit cards. It acts as a proactive measure by alerting you if your site has been compromised. This web application also blocks all kinds of unsecured credit card transactions. Unlike other similar systems, this application has a unique fraud prevention strategy that enables you to identify hackers more quickly and prevent them from accessing your customers' personal and financial data. Besides blocking unsecured credit card transactions, it also warns you about the scams carried out using your credit card.

In case you are running a business based on selling products or services, you can use the Sift-Ecommerce module to monitor your sales and expenses. It also provides you with valuable reports, which you can regularly access. If you find any suspicious transaction in your customer's account, you can request them to provide you with details of the transaction. This web application will also help you in checking your merchant bank statements and if necessary file police or fraud charges against the fraudulent seller.

Apart from all these benefits, the web application also helps you in tracking your web visitors and monitor their behavior when they visit your site. This web application provides you with detailed information about all of your visitors, including their IP addresses. With the help of this web application, you can easily determine which user logged into your website, which browser they used to access your site, the time when they last visited your site, the pages they viewed, and more. Apart from all these benefits, the Sift-Ecommerce module is also designed in such a way that it increases your SEO ranking.


Simility-Ecommerce is a premier Ecommerce and web development company with global presence. The company has been in the Ecommerce business for almost 10 years. They offer web design and development, web marketing, web promotion, and graphic design. This web development company provides all types of website solutions, from corporate Ecommerce Websites to simple one-page Websites, corporate Websites for small businesses, or for companies that are just starting out. You can create your corporate Website for less than one hundred dollars using the Simility-Ecommerce Website Design and Development Method.

The way this method works is that you choose the type of Web Development Company that you would like to use and then enter the email address of your web developer of choice. The developer will then provide you with a package of website templates for you to choose from. After choosing the template you wish to use, then all you have to do is enter your company's Web Address, and contact information. You are also given the option to pick a domain name for your new site. That's all. In about three weeks, your site will be live.

The way it works is that after you select the type of Web Development Company and a template, you then pick the name of your company, along with a description of your company and what type of products or services your company provides. After that, you choose a domain name for your new website. It goes as easy as pie! You should have no problem getting set up with Simility-Ecommerce. Just imagine the benefits of having your own Internet presence, and being able to sell your products and services without having your business fraudulently established on the web!

Ecommerce Fraud Prevention

Online retailers are increasingly becoming aware of the importance of implementing ecommerce fraud prevention measures into their business strategies. Despite the fact that over 90% of online transactions are conducted in the digital realm, it is true that hackers have shown no mercy when it comes to stealing identities, reducing costs and spreading spam. Luckily, there are numerous measures you can take to reduce your risk and safeguard yourself and your clients from cyber attacks. Here are some top tips for online retailers who wish to be more proactive about ecommerce fraud prevention:

* Beware of Your Client's Billing Address: One of the first steps to implementing ecommerce fraud prevention is to thoroughly check all billing addresses provided by a customer. Make sure the billing address is legitimate and up-to-date. If you notice any irregularities, inform the customer immediately through email and/or telephone. You may also want to check with the Better Business Bureau (BBB) to see if any complaints have been lodged against the merchant. If so, contact the company immediately to arrange for credit card transactions with a valid credit card.

* Sign On With a Merchant Account Provider: Another important step to taking additional measures against ecommerce fraud prevention is signing up with a merchant account provider. Not only does this significantly reduce the risk posed by cyber criminals but it also signals to potential customers that your business takes the matter of online security very seriously. If you sign up with a merchant account provider, ask them for a phone number that they can be reached at and/or a physical location where you can personally address any concerns they may have. In addition, make sure your payments are processed via secure gateway systems to further reduce the chances of payment theft or fraudulent activity.

Scroll down to read our indepth Ecommerce Platforms guide. What you should know, Ecommerce Platforms features, price plans and support. Pros and Cons of Ecommerce Platforms as a ecommerce, everything is explained below.

Overview of Ecommerce Scams

Shopify is a software company that specialises in ecommerce software for small to enterprise level businesses.

Shopify is listed as the best ecommerce software related to Ecommerce Platforms. Shopify was founded in 2006 in Ottawa, Canada and currently has over 6,124 employees registered on Linkedin.

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