How to deal with Fraudulent Merchants?

Shopify Discussion

Topic summary

A user reports alleged fraudulent activity by a dropshipping merchant (performancegymwear.com) operating on Shopify’s platform. The complainant claims to have substantial evidence of scam operations, alleging the merchant runs 7 shops/accounts and defrauds hundreds of people.

Key Arguments:

  • Shopify should enforce compliance with international trade laws and consumer protection regulations
  • Platform providers have legal obligations for client due diligence, beneficial owner identification, and monitoring suspicious transactions
  • Companies must collect transaction data (IP addresses, MAC addresses, payment terminal info) and take preventive measures when detecting abnormal accounts

Legal Framework Cited:

  • Requirements to re-verify user identity and suspend/restrict services upon discovering fraud-related accounts
  • Criminal liabilities (fines, detention) for individuals involved in fraudulent activities
  • Internet service providers must verify user identities before providing services

Status: The discussion remains open with no response from Shopify or resolution indicated. The poster believes Shopify can make a global difference in protecting consumers from growing scams.

Summarized with AI on November 8. AI used: claude-sonnet-4-5-20250929.
1

Hey all,

I do believe shopify does have a responsible position stopping scammers using your software and stealing from people.

I also have another ‘dropship’ example from the company http://performancegymwear.com using a shopify store for fraudulent purposes. They should comply to the rules of Shopify, international trade and consumer rights. If not Shopify should halt the operations of that website.

I believe Financial institutions, internet and hosting companies, telco’s etc must conduct client due diligence, identify the beneficial owners, and take corresponding risk management measures. (Art. 15.) In addition, they must monitor abnormal accounts and suspicious transactions and take necessary preventive measures. (Art. 18, para. 3.) When carrying out such monitoring, financial institutions may collect clients’ IP addresses, MAC addresses, payment acceptance terminal information, and other necessary transaction or device-location information. (Art. 18, para. 4.) In all email correspondence between multiple clients and Shopify its probably often very clear to see such abnormal account activity, suspicious transactions and fraud, thus a crime globally but also in Canada.

Internet service providers likewise need to verify users’ identities before providing services. (Art. 21.) When discovering an “abnormal, fraud-related” account, they must re-verify the user’s identity and restrict or suspend the services. (Art. 22, para. 1.)

Its clear this has not been done in a fashionable manner.

Legal Liabilities

According to the law, the individuals involved in fraudulent activities are be subject to detention, fines, and criminal liabilities. (Art. 38.)

I do believe Shopify can make a global difference protecting consumers from ever growing scams.

Merchants like performancegymwear.com should not abuse your platform. I have so much prove if this merchant scamming people, its HDD filling. (this guy has 7 accounts and shops, scamming hundreds of people that work hard, earning an honest wage) its amazing he can just continue.