How to deal with stolen credit cards and chargebacks with an online business

I own and operate a small online retail business. We recently saw an increase in sales but realized much too late that we were the victims of a sophisticated stolen credit card scam.

Purchases were made using all the necessary information to bypass security measures (name, billing address, CVV) but a separate shipping address was used although still within the same city. IP addresses matched the geographic area the items were shipping to. It was only after two separate purchases came through with the same delivery address that we got suspicious and started going through the past 3 weeks worth of sales only to realize majority of them were fraudulent.

Of the 13 orders, 1 was voided, 7 were shipped and delivered, and 5 were shipped and intercepts have been done so they get returned to the warehouse. Of course, I'm out all the shipping fees, intercept fees, credit card processing fees, and the cost of merchandise for the delivered items.

Is there any point to fighting a chargeback for delivered merchandise? As a business owner it's very defeating to follow protocols and feel as though the world is against you. We're talking about thousands of dollars in losses at this point. I don't think it's insurmountable damage, but it feels overwhelming. I started a gofundme page but I haven't shared it with anyone because it's a bit embarrassing. I feel like a failure and should I come out of this, I'd like to know how I can prevent this from happening in the future.

UPDATE: One of the people who received the merchandise got in touch with us and provided us with information that she was hired to receive packages and forward them. Our specific merchandise was sent to the FBA Amazon warehouse in Spartanburg, SC. FBA: Grigory Selianin. Amazon is complicit and supportive of these schemes. Reporting the abuse to Amazon is a nightmare and should they suspend the user, they will send the stolen goods back to them even though I can clearly prove that the merchandise is mine.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s