Article: Nearly 21% of Shopify stores pose fraud risk to customers

Article - Media, Publications

Nearly 21% of Shopify stores pose fraud risk to customers

Kalila Sangster, 23 December 2020

Nearly 21% of Shopify (SHOP) stores pose a fraud risk to their customers, according to new analysis by e-commerce authentication service Fakespot. Nearly 26,000 of the 124,000 Shopify stores analysed by Fakespot were “related to fraudulent practices,” says Fakespot. Around 39% of those were found to be “problematic sellers,” with issues of counterfeit products, possible brand infringements or a poor reputation.

Some 28% were possible scam stores, with privacy leaks and suspiciously cheap listings and just under 17% had negative reports from consumers, while 10% had no history of any transactions. “We recognise there will be those — however few they may be relative to our base of more than 1 million merchants — that may abuse our service, and we take this matter seriously,” Shopify said in a statement to the BBC.
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Article: Shopify hosts thousands of fraudulent shops, analysis finds

Article - Media, Publications

Shopify hosts thousands of fraudulent shops, analysis finds

Rachel Gilmore, 23 December 2020

Shopify says it does “not condone the behavior of bad actors” after a Fakespot analysis found that more than 20 per cent of the Shopify stores it analyzed posed a risk to shoppers. Fakespot is a program and browser extension that helps online shoppers to spot fake reviews and counterfeits. But recently, the company used their tools proactively to do an analysis of a little over 10 per cent of Shopify’s storefronts. The analysis found that almost 26,000 of the over 124,000 Shopify stores it looked into were “related to fraudulent practices” and were flagged with a “caution” or “warning determination” by the Fakespot tool. Shopify hosts over a million stores.
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