Suspected fraudulent orders using giftcards

[merinoyarn]

In the past 3 weeks, we have been getting a lot of gift cards purchases from a single shopper. This user would then use the gift card to purchase products of the website. Each time, the gift card amount purchased is different and charge on different credit card.

The orders went through without any issues and the cards didn't get flagged. BUT these activities are super abnormal! We have seen it happen to the restaurants industry. Have anyone experience this and if you have any feedback on how we should handle this? 

[Maz]

Hey, @merinoyarn!

Thanks for sharing your concern here.

I can appreciate why this may seem out of the ordinary for you, especially considering the varying amounts and different types of cards being used.

May I ask if you have tried reaching out to this particular customer to gather context? To gather more information and confirm the intentions of the customer, you can reach out to them via a courteous and professional email or phone call. Keep a neutral tone during the conversation and ask them to confirm some things about their orders to see if things match up. There are also some other steps listed here, which might help you with preventing fraudulent orders.

While protecting your business from fraud is crucial, it's equally important to maintain good customer relationships and ensure a positive shopping experience.

Aside from the above, how is everything else going with your business?

[Mirye]

Hi

I came here because I have the same concern. I have received several high value orders using a gift card, but the most concerning part is that payment is "pending". They also tend to be from out of country. How is it possible the Shopify algorithms don't flag these as high risk? Especially, if payment is not completed? 

In these cases of too good to be true, I just cancel the order, but I'd like to know if there's a way criminals can hack gift card codes and use them the make these purchases. And how can Shopify strengthen their security so that people can't easily "harvest" gift card codes. 

Thanks

[Maz]

Hey, @Mirye!

Thanks for joining this thread.

Shopify has implemented multiple measures and algorithms to prevent fraud and address potential risks. However, it's important to acknowledge that no system is completely foolproof. Sometimes, legitimate payments may be pending due to security checks or verification processes.

Although rare, criminals may attempt to acquire gift card codes through methods like phishing or social engineering. It's worth noting that Shopify stores the codes in an encrypted form, making it impossible for them to be accessed through the API or even by store staff.

In light of these concerns, I recommend flagging this issue with live support. They will be able to investigate the matter further and provide you with appropriate assistance. Please create a support request here at this link and follow the prompts given by the virtual assistant. Thank you!

[LazyAOutpost]

We have had 3 or 4 purchases made over the last year or two that Shopify flagged as potential fraud. After an internet search, we found that the shipping address was a well known scam (8 McCullough Dr New Castle, DE 19720), so we canceled each time. Yesterday, we had a purchase of a small item and a gift card, then 6 hours later the gift card was used with that same Delaware shipping address. Since the first transaction seemed legit, all 3 transactions were not flagged when all 3 of them are fraudulent. I am no longer going to offer gift cards in my Shopify store since thieves now have an outlet to try and scam us that way while we end up paying fees for bogus transactions that waste our time. 

[Milla77]

Actually this things happen to me today in my shop.Two of transaction has been flagged as potential high risk of fraud.I cancel and order and removed my gift cards of product section.I was really frustrated, Lesson learnt.

Thank you everyone for this post is really helpful.