While buyers have the concern of getting scammed online, sellers face the same concern as well.It is inevitable to avoid these buyer frauds entirely as dishonest buyers are looking for ways to get cheap deals (or for free) even if it's at the seller's expense. This phenomenon is not unique and it happens on eBay, Amazon and any other growing online marketplace.
Sellers face a risk of losing the item and money when they do not know how to protect themselves in fraudulent cases. We have read plenty of cases on forums like Askpins, PayPal Community and may even have a personal experience with such cases. Exercise caution before it's too late. Be aware of scams to look out for and take a look at what you can do to protect your business so you can sell with confidence.
5 Common Frauds to Beware of
1. Item not delivered or not received
This happens when a customer makes a purchase at your store with PayPal, you do the necessary to pack the item up and send it to the customer as soon as possible. The trouble starts if you forget to use a courier service with delivery confirmation.The fraudster tells Paypal that the item is not received. If you cannot provide a proof of delivery, PayPal will take the money back and refund them.
What to do:
- Give buyers realistic delivery dates to avoid prematurely filing disputes
- Ship with online tracking and obtain proof of delivery
- Order shipping insurance and be aware of insurance exceptions and liabilities
- Let customers know if item is out of stock/ reflect out of stock status
2. Return Abuse
The scenario happens after you have sent the item off, the customer files a false claim to say that the item is not as described, not received or damaged. When you ask to return the item for a refund, the customer sends back an item that was not originally purchased or maybe old junk to weigh down the box. They may even threaten to give a bad review if you complain. To make matters worse, you have signed for the package to acknowledge the goods have been 'received' which will result in PayPal deducting from your account for customer reimbursement.
What to do:
- Obtain proof of delivery and other supporting documents
- Contact the bank as soon as possible
- Lodge a police report
- Make a practice of documenting your delivery processes by taking pictures of the item in perfect condition and take down the serial code.
3. Item Not as Described or Faulty
A fraudulent buyer orders an item and upon delivery, they remove certain parts, exchange components in it for broken ones or damage the item intentionally to file a false claim about the listing to make a return for a refund.
What to do:
- Provide clear pictures and write accurate product descriptions
- Give sufficient product information and closure
- Respond to customers enquries promptly and clearly.
4. Feedback Extortion
As a seller's image is an important factor to sales especially Amazon and eBay who are dependent on feedback and ratings. This technique is basically blackmail by tarnishing a seller's reputation until they decided to pay up. A customer threatens to leave a bad review or low ratings on the the seller profile if they do not pay up the money.
What to do:
- Respond to the negative feedback in a professional manner; It helps to explain the situation to future buyers
- If it remains unresolved, ignore them and move on
5. Unauthorized Transactions
If you happen to find a transaction that you did not authorize, it is usually a sign that someone has hacked into your account and the illegal transaction is done by a cybercriminal. Whether it was an identity theft or account takeover, the hacker has got hold of your sensitive information. In another scenario, buyer may claim that they did not make any purchase and requests for a refund.
What to do:
- Work with customers to avoid any misunderstanding or open dispute: Sometimes the buyer may have forgotten that they have made a purchase or the transaction is made by a family member.
- Contact the bank immediately to prevent escalation
- File a fraud or police report
- Monitor your account and credit closely
Tips for Safer Sales
Payment disputes occur usually happen for one of the 3 reasons; Item not received, Item not as described and unauthorized transactions.
Here are a few things you can do to be cautious about these fraud activities.
1. PayPal initiated a seller protection program against fraudulent buyers. Review the Seller Protection policy in the Paypal User Agreement to know the details about coverage and eligibility of transactions.
Did you know that the PayPay Resolution Centre conduct investigations based on 2 types of complaints? They are Unauthorised transactions and Item not received.
2. Report a buyer that has violated any buying practices policy, You may be helping the whole community.
3. Be clear and concise as possible in your listings and return policy to avoid disputes, claims and chargebacks.
5. Keep your username, passwords and sensitive personal information and identity secure. Do not share it with anyone.
If you require any further information, contact our support team, support@luulla.com.
Posted by LuullaAdmin
Saturday 21 Apr 2018
