We have been advised of a recent eBay scam that targets music store websites. This one or similar has been going around for a little while according to our enquiries. 

This is how these scams are foistered on stores. 

eBay seller Person/Business advertises a product for sale on eBay that they don’t actually have. The Customer buys the product from the eBay seller and pays them the money

The eBay Seller goes to your website and enters in the Buyer’s name and delivery address. The eBay Seller the uses a stolen credit card and fake email address in the transaction details.

The actual card holder disputes the transaction – you get a chargeback. The Ebay Seller has received the Buyers money and the Buyer is not aware of the scam.

In consulting with other members we’ve been advised that all retailers should cross reference the Full Name, Address and Email of the customer and if anything looks fishy, make some further enquiries. Some credit card processors do this automatically but it is well worth enquiring about 3D security layering with your processor to ensure a better piece of mind. Also, as eBay uses Paypal frequently all Credit Card transactions through paypal (as opposed to Paypal to Paypal) should be checked carefully by the retailer.

Another scam has also been reported.

Basically the customer uses their own credit card to purchase an item, they then receive the item and notify their bank that someone has fraudulently used their credit card (which in fact belongs to them) the bank charge back the money immediately no questions asked (as per all banks’ policies).

The retailer eventually has the money charged back and has lost the stock. The bank then closes the case with no recourse for the retailer.

Again ID of the buyer is critical. Checking your customers Email, Name and Address Match up and having Proof of Delivery info accurate and easily accessible plus increasing your fraud protection with your credit card processor is important (even if it comes at a cost)

“We resolved this by being able to prove it was his credit card and that it was him who signed for it”