Is Shopify Legit? Shopify's scams you need to watch out for

Shopify has become one of the most popular eCommerce platforms, powering over 5.23 million businesses worldwide. But if you're new to online selling, you may be wondering: Is Shopify legit? Can you trust it to run your business securely?

The short answer is: Yes, Shopify is a legitimate, secure, and reliable eCommerce platform. However, as with any online business, there are risks involved, including fraudulent activities and scams that you should be aware of.

In this guide, we'll break down Shopify's credibility, common scams to watch out for, and how to protect yourself as a seller or buyer.

Is Shopify Legit? A Quick Answer

Shopify is a publicly traded company on the New York Stock Exchange (NYSE: SHOP) and has been in business since 2006. It provides a PCI DSS Level 1 compliant infrastructure, ensuring safe transactions and robust fraud protection for merchants and customers.

Key Facts About Shopify:

• Over 5.23 million businesses use Shopify worldwide.
• Shopify Payments offers built-in fraud protection.
• SSL encryption ensures secure transactions, making Shopify 100% safe.
• Trusted by brands such as Tesla, Gymshark, and Red Bull, which use Shopify to power their online stores.
• Rated ⭐ 4.5/5 stars on Capterra, based on customer reviews.
• Earns a ⭐ 4.4/5 rating on G2, with 4,623 reviews as of March 2025.

So, Shopify is indeed a legitimate and trusted platform. However, while Shopify itself is secure, some sellers and buyers may still face scams, which we'll discuss below.

Number Of Shopify Merchants (Source: Yaguara.co)

Why Shopify is a Trusted Ecommerce Platform

Established Reputation

Shopify was founded in 2006 and went public in 2015. With nearly two decades in the industry, Shopify has gained a solid reputation as a leader in eCommerce.

Strong Security & Payment Protection

• Shopify is PCI DSS Level 1 compliant, the highest level of security certification.
• Transactions are protected by SSL encryption, ensuring a fully secure shopping experience.
• Shopify Payments includes built-in fraud detection to prevent chargeback fraud.
• Shopify continuously updates its security measures to combat emerging threats, ensuring merchants and customers are protected against the latest cybersecurity risks.
• Shopify Plus offers advanced security features, including dedicated compliance support and additional fraud detection tools, making it ideal for large enterprises handling high transaction volumes.

App Store Quality Control

Shopify ensures that all apps listed on the Shopify App Store pass rigorous security checks. This minimizes risks from third-party applications that handle customer data.

Common Shopify Scams & Risks to Watch Out For

Even though Shopify is legitimate, fraudsters can still take advantage of the platform. Here are the most common scams to be aware of:

Shopify Dropshipping Scams

• Some dropshipping stores sell fake or poor-quality products.
• Others falsely advertise fast shipping times but take weeks to deliver.
• Some stores disappear after receiving payments without delivering orders.

Chargeback Fraud

• Some buyers purchase an item, receive it, then falsely dispute the charge with their bank to get a refund.
• Chargebacks can be costly for merchants, even if they provide proof of delivery.
• Scammers may use stolen credit cards to place orders, leading to chargeback losses for store owners.

Fake Shopify Stores

• Scammers set up fake Shopify stores mimicking real brands.
• They use misspelled URLs or clone legitimate websites to deceive customers.
• Once orders are placed, they steal credit card information or fail to deliver products.
• Some fake stores use fake customer reviews to build credibility and lure in unsuspecting buyers.

App Scams & Phishing Attacks

• Some fraudulent third-party apps steal customer data.
• Scammers send fake emails posing as Shopify to obtain login credentials.
• Fraudsters create fake Shopify support websites to trick merchants into revealing sensitive information.

Shopify Automation Scams

• Scammers promote “done-for-you” Shopify automation services that promise passive income but fail to deliver.
• Many of these services charge thousands of dollars upfront and leave store owners with unsuccessful, poorly managed stores.
• Some automation scams use misleading testimonials and fake success stories to attract victims.

Supplier Scams on Shopify

• Some Shopify sellers fall victim to fraudulent suppliers who take payments but never deliver products.
• Fake suppliers often offer unrealistically low wholesale prices to lure in merchants.
• Dropshipping sellers relying on unverified suppliers may face chargebacks and lost inventory.

How to Avoid Shopify Scams & Protect Your Store

For Buyers: How to Shop Safely on Shopify

• Check the store's URL and contact details – Avoid stores with suspicious domain names.
• Read reviews on Trustpilot, BBB, or Reddit before purchasing.
• Be cautious of unrealistically low prices – If a deal seems too good to be true, it probably is.

For Merchants: How to Secure Your Shopify Store

• Enable Two-Factor Authentication (2FA) on your Shopify account.
• Only install apps from the official Shopify App Store.
• Use Shopify Payments to reduce fraud risks.
• Enable Shopify's Fraud Analysis tools to detect high-risk transactions.
• Verify customer information for high-value orders before shipping.

Shopify vs Other Ecommerce Platforms: Which is More Legit?

Verdict: Shopify is one of the most secure platforms, balancing ease of use with powerful features.

Final Verdict: Should You Trust Shopify?

Yes, Shopify is a legitimate and trustworthy eCommerce platform. However, online scams exist, and both buyers and sellers must stay vigilant.

Key Takeaways:

• Shopify is secure, well-established, and widely trusted.
• Beware of dropshipping scams, fake stores, and chargeback fraud.
• Always follow security best practices to protect your business.

If you’re serious about eCommerce, Shopify is one of the best platforms available today.

=>> Read more: Is Shopify Worth It? A Comprehensive Shopify Review