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We have a scammer that is buying our e-Books and then performing chargebacks. Our e-Books don't have DRM, so if they wanted to resell them, they would only need to buy each book once. But instead, they keep buying the same books over and over again and then performing hundreds of chargebacks.

We have created some additional rules in our fraud protection tools to block certain aspects, even though all the info looks legit, and are hopeful this will slow them down.

But my question is: What is the scam? If they aren't getting any product and they only get chargebacks for something they already purchased, then they can't get additional money from the credit card company, so then what's their motivation?

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This question appears to be off-topic because it is not about webmaster webmastering defined as in faq –  John Conde Oct 28 '13 at 22:42
    
This question appears to be off-topic because it is about Webmaster a website. –  bybe Oct 28 '13 at 23:00
    
"With your help, we're working together to build a library of detailed answers to every question about the operation of websites." Preventing fraud and scams, aka security, seems like a big part of operating a website. There are other payment gateway questions here, so this seemed related. I don't understand why this is wrong or where else I would possibly ask this. –  Dan Friedman Oct 29 '13 at 14:13
    
I re-opened this question and edited the title because you attest that this chargeback scam is related to your website. You had not made that clear to John and Bybe originally. –  Stephen Ostermiller Oct 29 '13 at 19:00

1 Answer 1

We figured out that this was an affiliate scam. Affiliates were getting commissions for orders, but the commission was not getting reversed for chargebacks.

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