Shopify powers 27% of all e-commerce websites worldwide. That’s a staggering 5.17 million active stores worldwide and 4.6 million daily active users globally. However, despite this strong performance, concerns about Shopify's legitimacy and safety persist due to increasing online scams and fraudulent activities.
In this article, we’ll explore whether Shopify is trustworthy, if prebuilt Shopify stores are legit, and whether you can safely set up a Shopify store. We'll examine Shopify's credibility, the risks and benefits of buying a prebuilt store, and how to identify legitimate sellers.
How Safe is Shopify?
The Shopify platform itself is highly secure. Shopify regularly updates its security features to stay ahead of potential threats and offers SSL encryption, PCI compliance, and fraud prevention tools to protect transactions and customer data. Here's what this means:
- SSL Certificates and Data Encryption – Shopify uses SSL certificates to encrypt data between the user's browser and the server. These certificates authenticate a website's identity and protect sensitive details like passwords and credit card numbers from threats such as man-in-the-middle attacks.
- PCI DSS Compliance – Shopify complies fully with the Payment Card Industry Data Security Standards to protect your credit card information and prevent Shopify scams. These rigorous security measures include robust network monitoring, secure access controls, and strict data protection protocols.
- Shopify Payments Security – With Shopify Payments, you gain access to robust security features designed to protect both you and your customers. The platform offers advanced fraud protection tools to detect and stop suspicious activities, ensuring that only legitimate transactions occur.
Read More: Everything You Need to Know About Selling on Shopify
Can You Get Scammed on Shopify? 5 Fraud Tactics and Preventions
While Shopify itself is secure, it isn’t immune to fraud just like any online platform or marketplace. Some scams bypass Shopify’s safeguards, putting both sellers and buyers at risk. Let’s investigate the 5 scam tactics that can happen on Shopify and how to protect yourself against them.
1. Chargeback Fraud
Some buyers make legitimate purchases but later dispute the charges with their bank, falsely claiming they never received the item or that the transaction was unauthorized. This results in lost revenue and potential chargeback fees. To avoid this:
- Use Shopify tools (see below) to safeguard against chargeback losses.
- Keep thorough records, including tracking numbers and proof of delivery.
- Clearly state refund and return policies to minimize disputes.
2. Fake Customer Refund Scams
Similarly to the previous point, fraudsters can pose as customers and request refunds for orders they never paid for but claim were incorrect or never arrived. They may even provide fake tracking links or altered receipts to support their claims. Remember to:
- Always verify claims by checking order history and shipment tracking.
- Require customers to return items before issuing refunds.
- Be cautious of refund requests for unusually large amounts.
3. Triangulation Schemes
Using triangulation schemes, fraudsters set up fake Shopify stores to deceive buyers and capture their orders and payments. They purchase your products with stolen credit card details and have them shipped to the original customer, thereby masking their scam. To protect your business:
- Always verify the legitimacy of large or unusual orders.
- Monitor for discrepancies like multiple orders to the same address with different card details.
- Use fraud detection and prevention tools offered by Shopify.
4. Fraudulent Emails and Phishing Attempts
Phishing emails that claim to be from Shopify are common. These emails often try to deceive users into revealing personal information or clicking on malicious links. To safeguard your store:
- Educate yourself and your team about recent phishing tactics.
- Verify the sender's email address before replying or clicking any links.
- Use Shopify's admin dashboard for official communications.
5. Fake Shopify Stores
Counterfeit stores are fake Shopify stores selling non-existent or low-quality products. This type of fraud harms the reputation of honest sellers, causing customers to lose trust, reduce sales, and create potential legal problems. To protect your brand:
- Actively monitor for stores mimicking your brand or products.
- Report any infringements promptly to Shopify.
- Encourage customer reviews and testimonials to build and maintain trust.
Steps Shopify Takes to Proactively Combat Fraud
To keep the platform safe for both sellers and buyers, Shopify uses different methods to fight fraud. According to the official 2023 statistic, Shopify's interventions have helped stop more than 20 million fraudulent authorizations, deterring fraudsters from targeting Shopify merchants
Fraud Analysis
Shopify's built-in fraud analysis uses machine learning algorithms to help identify potentially fraudulent orders. It provides indicators such as mismatched billing and shipping addresses, high order values, and IP address anomalies. Merchants can review these indicators to decide whether to fulfill or cancel an order.
Shopify Protect
For merchants using Shopify Payments and Shop Pay, Shopify offers "Shopify Protect", which protects against fraudulent chargebacks on eligible orders. This service covers the total order cost and chargeback fees, allowing merchants to fulfill orders with confidence.
Fraud Control App for Shopify Payments
Shopify provides a Fraud Control app exclusively for Shopify Payments users, helping merchants automatically decline high-risk orders before they are processed. The app allows users to set custom rules based on risk factors such as mismatched billing and shipping addresses or unusual purchasing patterns.
How to Tell if a Shopify Store is Legit: Must-Have Trust Signals
For any Shopify seller, ensuring your store appears legitimate is just as important as identifying fraudulent ones. Shoppers look for specific trust signals before making a purchase, and missing these elements can hurt your credibility. Here are the key factors to focus on:
- Website Design and Domain Name – A sleek website design (possibly built with Shopify Polaris) and a credible custom domain name signal legitimacy. Conduct regular audits to keep your site up to date.
- Contact Information and Customer Reviews – If potential buyers can't easily find ways to contact you or don't see customer feedback, they may question your store's authenticity. Regularly update your contact details and actively engage with reviews.
- Return Policies and Terms of Service – Clearly display your return and exchange policies, as well as terms of service to let customers know how issues will be handled.
- Trust Badges and Security Seals – Use trusted payment processors and display their logos, like Visa, MasterCard, or McAfee Secure, as well as any other certifications, such as PCI DSS compliance, to add credibility.
3 Advanced Tips for Safe Selling and Shopping on Shopify
We’ve already reviewed the best practices for each possible scamming tactic, explored Shopify’s security mechanisms, and shared tips for signaling legitimacy. But if you want to take your Shopify store security even further, here are some pro-level tips:
1. Enable Two-Factor Authentication (2FA) and Access Control
To strengthen the security of your Shopify account, enable two-factor authentication (2FA) for both store owners and staff. This provides an additional layer of protection by requiring a second verification step. You can also use Shopify’s staff permissions feature to assign specific roles to team members based on their responsibilities. Limiting access to sensitive information can help reduce the risk of unauthorized or inappropriate access.
2. Use Third-Party Fraud Prevention Apps
Consider integrating third-party fraud prevention apps or creating custom solutions to enhance your store’s ability to detect and manage fraud. These apps typically offer features like real-time fraud scoring and automated detection, which can help identify potentially fraudulent transactions and reduce the likelihood of chargebacks.
3. Conduct Regular Security Audits
Regularly review your store’s security measures, including apps, passwords, and payment systems, to ensure they are up-to-date and secure. Check that your SSL certificates are valid and assess your website for any potential vulnerabilities. If needed, you can also explore specialized QA testing services to further evaluate your store’s security.
Is Shopify Safe To Use? The Bottom Line
In short, Shopify is a legitimate and secure platform for both sellers and buyers but, like with any online selling platform, vigilance is important.
When you understand Shopify's security measures and remain aware of common scams, you can navigate the platform with more confidence. Whether you buy or sell, prioritize informed decision-making to ensure a safe and successful e-commerce experience.
Frequently asked questions
Yes, Shopify is generally safe due to secure payment methods and strict seller standards, but buyers should still verify store legitimacy and review policies before purchasing.
Yes, it's real to make money on Shopify. In 2023, Shopify merchants collectively generated over $444 billion in sales. Many entrepreneurs, including brands like Gymshark and Allbirds, built multi-million-dollar businesses using Shopify, showcasing its earning potential.
Yes, Shopify pays through its various services. Merchants earn revenue by selling products on their stores, and Shopify earns a commission via subscription fees and transaction fees. Shopify also pays partners and affiliates through its Partner Program, based on performance and referrals.
Shopify is secure, with strong security measures in place. It uses SSL encryption, PCI DSS compliance for payment processing, and 2-factor authentication for account protection. However, no platform is entirely immune to hacks, so merchants should follow best security practices, like regular updates and using strong passwords.
Shopify's downsides include transaction fees unless using Shopify Payments, limited customization without coding, monthly subscription costs, and additional expenses for many apps, which can add up for small businesses.
Shopify requires sensitive information like SSNs for tax purposes. However, it employs encryption and strict data protection protocols to keep such information safe.
Shopify stores are generally legit, thanks to the platform's security features like SSL encryption and PCI DSS compliance, which help ensure trustworthiness and reliability.
Yes, Shopify is considered reliable due to its robust infrastructure, high uptime, strong security features, and comprehensive customer support, making it a popular choice for businesses of all sizes.
