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Shopping with Shopify?

Strategies against fraudulent use


Shopify is a Canadian E-Commerce company that offers a number of services to sellers. Ranging from payments, marketing and shipping, vendors can use a Shopify store as the main online store due to the number of products and services available to them. It slightly differs from marketplaces like eBay and Amazon as a lot more autonomy is given to merchants who are using the system.

But this has not always turned out to be a good thing. As successful as Shopify is becoming, it still has a daily battle with scammers who are running fake web stores on their infrastructure. With more than 600,000 merchants on-board, it cannot be an easy task to verify everyone on the platform. But Shopify is taking steps to try and ensure that customers are getting a safe experience.

What is the issue with Shopify?

One of the main issues with Shopify is simply how easy it is to set up an online store. For as little as $30 a month, Shopify will take care of everything, including shipping, payments and inventory. But as much as this is easy for sellers, this is also easy for anyone looking to make quick money.

A company called MyPillow fell foul of one such scammer. The person set up a webstore with a very similar name, and used intellectual property from the original store. Despite the fact that Shopify took this down, the owner of the original store is now sueing Shopify for copyright infringement. It hasn’t gone unnoticed by the original store owner that Shopify made money from the fake store.

(Shopify’s front page advertises how easy it is to get set-up)

What is Shopify doing about this?

Shopify faces a conundrum that many social networks also face: How far does their responsibility go for user-generated content? Shopify has a number of protection measures in place. One of the main ones is bug bounties. Rather than punish, it actually rewards white hat hackers with cash for finding vulnerabilities in the system, which will in turn help Shopify keeping its customer details safe. It also has a system set up which verifies the address billing. This is set up to help look for fraudulent transactions.

Ultimately, even though there are tools in place, if you have a brand or a product that could be copied, it is important to put your own brand protection measure in place. A test purchase is a great way to check if authorised sellers are behaving as they should, and marketplace monitoring can also alert you to instances of your product being sold that you may not have been aware of. 

(Shopify also like to advertise their synergy between different selling methods)

If you are troubled with fake shops, using Shopify or other systems, kindly check back with globaleyez. We can help you in a many issues, with domain takedown services, test purchases and online brand protection measures

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