With the proliferation of online transactions, MSME actors are increasingly vulnerable to fake orders. This act is a disturbing form of fraud because the perpetrators often appear very convincing, deceiving sellers.
In addition to causing time loss, fake orders also directly impact business inventory and cash flow. So, how can you avoid this practice to keep your business safe? Read the full information in this article!
What are Fake Orders
Fake orders are false orders intentionally made without the intent to actually purchase. This modus operandi is prevalent in online businesses and delivery services, where perpetrators pretend to order products or services, but their sole purpose is to toy with, deceive, or harm the seller.
In many cases, perpetrators never make payments but make sellers believe that transactions have been or will be completed. This can result in losses in terms of goods, time, effort, and even business finances.
Citing Narasi TV, the practice of fake orders is considered a legal violation and can be subject to sanctions based on Article 35 of the ITE Law, which states:
“Any person who intentionally and unlawfully or against the law manipulates, creates, alters, deletes, or damages Electronic Information and/or Electronic Documents with the intent that such Electronic Information and/or Electronic Documents be regarded as authentic data.”
Characteristics of Fake Orders
Fraudulent schemes in the form of fake orders can occur in various ways. However, there are recurring patterns that can be identified early if you are vigilant. These include:
1. Providing Unclear or Suspicious Shipping Addresses
Perpetrators often provide incomplete, untraceable, or even fictitious addresses. This complicates the delivery and tracking process if issues arise.
2. Using Identities That Are Difficult to Verify
The names, phone numbers, or accounts used are usually fake or belong to others. Even when contacted, their responses are inconsistent or tend to be evasive.
3. Placing Large Orders and Urging Immediate Shipment
Another common modus operandi is placing unusually large orders and insisting on immediate shipment for various reasons. This is a trick used by perpetrators to rush sellers and prevent them from verifying.
4. Requesting Cash on Delivery (COD)
Perpetrators often claim they will make cash payments upon goods receipt. However, when the courier arrives, the customer suddenly becomes unreachable, refuses to accept the goods, or even claims not to have ordered the item.
5. Sending Fake Proof of Transfer
Scammers may send transfer screenshots as proof of payment. However, upon further inspection, such proof is often invalid or intentionally manipulated.
6. Suddenly Disappearing After Order Shipment
After the goods are shipped, the customer becomes unreachable. For example, by blocking numbers, deleting accounts, or providing no response at all.
7. Using New Accounts or Accounts Without Transaction History
Often, the accounts used are new and have no prior order history. While not always the case, this can be an early sign to be vigilant.
Methods Businesses Can Employ to Avoid Fake Orders
Dealing with fake orders can indeed be frustrating for MSME actors. However, this does not mean you cannot prevent them. With the right steps, the risk of losses can be minimized. Here are some methods you can implement:
1. Carefully Check Shipping Addresses and Locations
Many perpetrators of fake orders use false or incomplete addresses, making delivery impossible. Therefore, ensure you ask customers to provide complete and clear addresses, including block numbers, house numbers, or at least a landmark. You can also use navigation applications like Google Maps to verify the address’s authenticity.
2. Verify Proof of Payment Before Shipping Goods
Do not immediately trust a customer’s claim of having made a transfer. Fraudsters often send fake transfer proofs in the form of screenshots.
Ensure you check your bank statement directly or monitor notifications from the payment gateway system. Ship goods only after payment has been genuinely received.
3. Contact the Customer Before Shipment
Always reconfirm via chat or phone before shipping goods. Ask specific questions such as the location or who will receive the package. If the buyer is difficult to reach or their answers are suspicious, it is advisable to delay shipment until clarification is obtained.
4. Limit Order Quantity for New Customers
Implementing an order limit or transaction value can serve as an initial safeguard. For example, limit new customers to a maximum of 5 items or a purchase of IDR 1 million. If someone places a large order, request an upfront payment to filter suspicious orders early.
5. Request Down Payment for Large Orders
If a customer places a large volume order, it is advisable to request a down payment (DP) of 30–50% of the total transaction. This is important to cover initial production costs and simultaneously demonstrate the buyer’s seriousness.
Do not begin the production or packaging process before the DP is received. This method is highly effective in preventing larger losses.
6. Modify the Order Management Process
You can also adjust your order management system to filter suspicious orders. Use specific criteria to assess whether an order is legitimate or requires reconfirmation. With the help of CRM or modern POS systems, you can view customer data in real-time and more easily distinguish between genuine and fake orders.
7. Use an Integrated Payment System
Manually managing transactions is prone to errors and fraud vulnerabilities. Therefore, Labamu offers a POS Cashier feature that can help you record every order and transaction automatically and in real-time. You can check transaction history directly from the dashboard with a simple yet informative display. With this system, you can make decisions faster and more securely without the hassle of manual checks.
Download the Labamu app via Google Play or App Store now!
