• Huntress uncovers Shopify refund scam using fake orders and app notifications
• Attackers embed contact details in shipping addresses to trick victims into paying
• Users advised to ignore suspicious info, verify refunds, and report fake stores

Hackers are targeting businesses and individuals running Shopify stores with a highly sophisticated fake refund scam, experts have warned.

Security researchers at Huntress outlined how the fake refund scam works: first, a victim gets a notification that they received a refund. It could be for a returned iPhone, or a canceled service or order. The “refund” can be anywhere from a few hundred, to a few thousand dollars. Soon after, the scammers call (or mail) the victim, say they work at the company that gave the erroneous refund, and convince the victim to return the funds.

If the victim complies, they are actually sending their own money to the victims, since the “refund” part never happened.

Abusing Shopify's infrastructure

There are a couple of ways to pull this attack off: sometimes the scammers really make the initial transaction, but are able to cancel it and return the funds; in other scenarios, they create spoofed pages showing the transactions, tricking those slightly more gullible.

In most cases, fake refund scams can be spotted relatively easily, which is why they are not that popular nowadays. However, this new campaign comes with a sinister twist that will make even hardened veterans wince.

Huntress’ report notes the attackers start by creating a Shopify store of their own (or use a compromised one). The one the researchers observed was called “My Store” and was later deleted before it could be further scrutinized. Then, the attackers make a fake order themselves, setting their targets as the recipients using their phone numbers, or email addresses.

This type of information isn’t that difficult to come by these days. There are hundreds of email and phone number databases leaked on the dark web, which can be picked up for free (or for a handful of dollars). When they submit the purchase order, a notification appears in the victim’s Shop apps.

Yes, that’s right. In the Shopify app itself. Coming through Shopify infrastructure. As such, it can easily be confused for an authentic notification. It is even worse for users that enabled push notifications on their mobile phones, since they’ll see a notification with the Shopify logo, next to all the other notifications on their phone.

But the attackers still need to pull off the hardest part - getting the victim to “return” the money. In this case, instead of calling or messaging them, they leave their contact information in the shipping address, hoping victims would panic and reach out themselves.

In one shared example, the shipping address was listed as: Owen Nolan “2856 If You Didnt Place This Order Call Us at 1_888_690_3420-”, Albany NY United States 1_888_690_3420.”

For those treading carefully through the internet’s wastelands, the message included in the shipping address is an immediate red flag. Grammar mistakes, all letters capitalized, and a phone number completely out of place should be quite an obvious sign of an attempted fraud. However, since these kinds of scams bet on people being fast, reckless, overworked, and afraid, it might just work.

Huntress did not say if the scam made any meaningful impact among the Shopify’s community, or if it targeted a specific subgroup of users.

Defending against fake refund scams

To protect against such attacks, the researchers advise users never interact with phone numbers, email addresses, or links contained in an order that aren’t recognizable. They also advise users concerned about the security of their SHop account or personal data to contact support, and stress users should check their bank accounts to confirm whether they were actually changed. If they weren’t, they can report the order as “Not my order” in the shop app.

Finally, when purchasing from a store on Shop in general, users should check the store and its product reviews to learn about other customers’ experiences. If users are concerned that a product or store could be fake, it can easily be reported. Many of the shops in this scam were brand-new, with some using a "coming soon" description, as well.

Sead is a seasoned freelance journalist based in Sarajevo, Bosnia and Herzegovina. He writes about IT (cloud, IoT, 5G, VPN) and cybersecurity (ransomware, data breaches, laws and regulations). In his career, spanning more than a decade, he’s written for numerous media outlets, including Al Jazeera Balkans. He’s also held several modules on content writing for Represent Communications.