Question 1

How does cyber shoplifting work?

Accepted Answer

Cyber shoplifting occurs when a customer makes a purchase they intend to get their money back for later. To do this, they will initiate an order from an online retailer. Once the order has shipped, they will claim the order was significantly different from what they ordered, was damaged or never arrived, or that it was never authorized.

Unlike a case of accidental friendly fraud, the cyber shoplifter will never return the item once the bank initiates a chargeback. They receive a refund for the original transaction amount, but keep the merchandise.

Question 2

Who commits cyber shoplifting?

Accepted Answer

Cyber shoplifters are the cardholders themselves, looking to get something for free.

Itâs possible that a cyber shoplifter might get so good at ripping merchants off that they can start their own side business from the products they grift. However, this isn't commonly the case. Most cyber shoplifting is committed by regular people who figured out how to game the chargeback system for free stuff.

Question 3

What are the signs of cyber shoplifting?

Accepted Answer

The key indicator of cyber shoplifting is a previous customer who has abused the dispute process in the past. Other possible red flags include erratic or unusual purchasing behavior, orders that originate outside the country, or an order for items commonly targeted by fraudsters.

Question 4

How can merchants prevent cyber shoplifting?

Accepted Answer

A few best practices can greatly reduce your exposure to cyber shoplifters. Examples include flagging cross-border transactions, reviewing large orders, limiting transaction velocity, sending order confirmations, getting active confirmation, and requesting delivery &amp; signature confirmation.

Question 5

What is digital shoplifting?

Accepted Answer

Digital shoplifting is a form of intentional chargeback fraud. Scammers intent on stealing from eCommerce merchants make online purchases, and then turn around and file bogus chargebacks so that they can get what they bought for free.

Question 6

Is cyber theft illegal?

Accepted Answer

Yes, cyber theft is illegal, and perpetrators risk federal or state mail fraud charges. If convicted, offenders could face fines or prison time, depending on the severity of the crime.

Question 7

What are three examples of cyber theft?

Accepted Answer

Cyber shoplifting, piracy, and identity theft are three examples of cyber theft.

Author

Mike Elliff

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Author

Mike Elliff

Recent Articles by Mike Elliff

Cyber Shoplifting

Tokenization

Dropshipping Chargebacks

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Resources

Company

Contact Us

United States

Europe

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