Disputify – eCommerce Fraud FAQs

Online Fraud Prevention FAQ

Refund fraud or eCommerce fraud is the act of defrauding the returns process of an online store.

Most eCommerce merchants offer some kind of refund policy in the event of an order being lost or damaged. In some cases, eCommerce fraudsters abuse these rules to gain products and refunds by deception.

Whilst eCommerce platforms like Shopify offer some analysis and detection, the most effective way to prevent eCommerce fraud is to use a dedicated refund fraud tool. Doubling down on your security technology allows you to take back control and protect your business in the most effective way possible.

There are a number of different types of refund fraud. A frequent scam, particularly common with eCommerce merchants, is for deceptive customers to claim that an order was never received or was damaged on arrival. Sellers are then forced to issue a refund despite the claim being false. 

The main challenge posed by refund fraud is that it’s often the merchant’s word against the fraudsters. Having no hard evidence that the statement is false, and risking their reputation and ratings if they deny the request, many online stores are simply forced to issue the fraudulent refund.

As a result of this frequent success, refund fraud is becoming an increasingly common and costly challenge for vendors. In 2020 alone, eCommerce merchants were defrauded of over $25 billion – and this figure is predicted to increase exponentially in the coming years. 

Shopify is a trusted platform with a range of security measures. But eCommerce fraud is on the rise and is a growing cause for concern among all merchants who retail online.

If you get scammed on Shopify the platform does offer a Fraud Prevention Centre that deals with unauthorised transactions and fraudulent activity.

The service provides a range of tips to help sellers screen customer orders – including verifying IP addresses, checking personal details, and installing fraud prevention apps.

Disputify is recognised as the most effective eCommerce fraud prevention tool for Shopify users. The plugin allows for complete compatibility and can be synced with your existing account in just 2 minutes.

Disputify and Shopify is the perfect pairing. This is because they both allow eCommerce users to actively protect themselves from scammers and operate in the safest way possible.

Because the majority of online theft is committed by serial offenders, the most effective way to disrupt their scams is to identify their accounts.

Merchants are challenging online fraud networks by using eCommerce fraud prevention tools – and sharing information in an anonymised way.

eCommerce fraud prevention tools work by scanning the orders received by merchants, to identify suspect behaviour and known fraudsters. If a known fraudster user places an order, the merchant is instantly alerted before fulfilment.

This system prevents fraud at the key moment – before the order is shipped, and the money is lost.

Disputify is the most effective online tool for tracking, detecting, and preventing refund fraud. Within our extended community of merchants, our shared aim is to turn the tide on fraudsters.

Together, we’re creating a safer environment for the entire eCommerce industry. To be part of taking a stand against serial fraudsters, check out 3 Reasons to Consider Your Refund Rate.


Friendly fraud describes the act of a fraudster reporting a charge on their account as unauthorised. But in reality, they were aware of the transaction and benefited from it in some way.

It’s is a scam that’s becoming increasingly common within the eCommerce industry and is posing a serious problem for merchants.

For example, a grifter will file a false credit card claim, stating that their bank should refund the money because a particular charge is fraudulent.

But in fact, the charge was made by someone they know – such as a friend or family member. If the claim is approved, then the money will be refunded, despite the scammer deceptively receiving the goods.

The difference between friendly fraud and other forms of cyber theft is that the scammer and the cardholder are known to each other.

Most eCommerce fraudsters use bank account details stolen from a stranger. But friendly fraud is committed in conjunction with the account holder.

This “friendly” relationship between the scammer and the account holder adds an extra layer of deception. And it makes the fraud even more challenging for banks and merchants to identify and eliminate.

Disputify is the only eCommerce fraud prevention tool that identifies and eliminates fraud in real-time.

The best anti-fraud online platform on the market, Disputify offers a range of unique tools to protect eCommerce vendors.

Disputify is built around a network of merchants who are working together to eliminate eCommerce fraud. They do this by using Disputify’s online tools to identify known scammers – then sharing these details with the community. This allows eCommerce fraudsters to be identified, unmasked and blacklisted in real-time.

Our online tools are unique because they act at the most crucial moment of the fraud process – after transaction but before fulfilment. This allows eCommerce merchants to stop scam orders before they lose money – and gain key insights into the fraudsters and their practices.

This data can then be used to prevent future fraud, educate our merchants, and protect the entire eCommerce community.

Disputify is uniquely optimised for a range of eCommerce platforms, including Shopify. Simply download the app and sync it with your store – all in just 2 mins.

If you’re searching for the best eCommerce fraud prevention tools on the market, then download Disputify today. A 14-day free trial is available now.

Want to take further steps to protect your business? Read our 5 Ways to Reduce Fraud.

All merchants and online sellers MUST actively protect their businesses from eCommerce fraud. In 2021, it’s an integral part of any safe, secure, and successful business.


As our everyday activities increasingly move online, cyber theft is on the rise. Scammers are constantly finding new ways to evade security and hurt businesses. For this reason, the best way to protect your eCommerce store is to organise and strategise.


This means working with the global community of merchants and collaborating to stamp out the problem for good.


Disputify is helping merchants work together to map and track patterns of customer behaviour. This ability to organise on a global scale is allowing eCommerce retailers to turn the tide on known grifters.


From cyber theft to friendly fraud, the techniques used by scammers are multiplying all the time. But with real-time technology and a unique Network Score that identifies and eliminates fraudsters – there’s never been a better way to protect your eCommerce business than Disputify.


To begin arming yourself against eCommerce fraud and properly protecting your online store – see our pricing guide and download Disputify today.