disputeresponse Sep/ 9/ 2025 | 0
The Buy Online, Pickup In-Store (BOPIS) model has become increasingly popular, but so has fraud. Understanding how to identify and manage BOPIS fraud attempts is essential for businesses in 2025. Here’s what you need to know.
What is BOPIS Fraud?
BOPIS fraud occurs when fraudsters exploit the BOPIS model by placing online orders with stolen credit card information, then using fraudulent methods to pick up the items in-store. This creates a risk for merchants, as they may end up losing both the products and the money.
Common BOPIS Fraud Schemes in 2025
Fraudsters use various methods to exploit BOPIS, including:
1. Stolen Credit Cards
Fraudsters use stolen card details to make purchases online, with the intention of picking up the goods in person, thus circumventing card-not-present security measures.
2. Account Takeovers
In account takeover schemes, fraudsters gain access to legitimate customer accounts and make fraudulent purchases using stored payment information.
3. Fake Identity Pickups
Fraudsters may send an accomplice to pick up the order, using fake or altered identification to complete the transaction.
How to Identify BOPIS Fraud Attempts
Recognizing BOPIS fraud is critical in minimizing its impact. Here are some signs that you might be dealing with a fraud attempt:
1. Unusual Pickup Locations
If the pickup location differs from the billing address or the customer’s usual behavior, it could be a red flag.
2. Multiple Orders from New Accounts
Be cautious of multiple orders from accounts that have just been created or have little purchase history.
3. Inconsistent Customer Information
Fraudulent transactions often come with mismatched contact details, such as a phone number that doesn’t match the billing address or email addresses that look suspicious.
4. Abnormal Order Volume
A sudden spike in orders for high-ticket items, especially in areas that typically experience lower demand, should raise suspicion.
Steps to Report and Combat BOPIS Fraud
If you suspect BOPIS fraud, it’s crucial to act swiftly to mitigate losses. Follow these steps:
1. Notify the Payment Processor
Report the suspicious transaction to your payment gateway or processor immediately. This can help initiate chargeback protection and block further fraudulent purchases.
2. Monitor Store Pickup Transactions
Use advanced monitoring tools to track and identify abnormal behaviors in store pickup patterns.
3. Increase In-Store Verification
When customers come to pick up orders, ensure they provide valid identification that matches the order details. This will reduce the chance of fake identity pickups.
4. Implement Additional Fraud Prevention Tools
Invest in fraud prevention technologies like 3D Secure and AI-based systems to identify and block fraudulent transactions at the point of sale.
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Conclusion
As BOPIS continues to be a popular shopping method in 2025, businesses must remain vigilant against fraud. By understanding how to identify and report BOPIS fraud attempts, you can protect your business, reduce chargebacks, and ensure a smooth transaction process for legitimate customers.
For more information on chargeback prevention and fraud detection, visit Dispute Response.
