Fictitious Orders and Ghost Buyers: A Real Threat and How to Avoid Them

Amid the rapid growth of online transactions, small business owners are becoming increasingly vulnerable to fictitious orders. This scheme is a troubling form of fraud, as perpetrators often appear highly convincing, making it easy for sellers to be deceived.

Beyond wasting your time, fictitious orders also directly affect your inventory and cash flow. So, how can you avoid this practice and keep your business safe? Find the full information in this article!

What Is a Fictitious Order?

A fictitious order is a fake order intentionally placed without any real intention to purchase. This scheme is common in online businesses and delivery services, where perpetrators pretend to order products or services with the sole purpose of mocking, deceiving, or causing losses to the seller.

In many cases, the perpetrator never makes any payment but manipulates the seller into believing that the transaction has been or will be completed. This can result in losses in the form of goods, time, effort, and even the financial health of the business.

According to Narasi TV, fictitious orders are considered a violation of the law and can be subject to penalties under Article 35 of the Indonesian Electronic Information and Transactions Law (ITE Law), which states:

"Any person who knowingly and without authority, or unlawfully, manipulates, creates, alters, deletes, or damages Electronic Information and/or Electronic Documents with the intent that such Electronic Information and/or Electronic Documents are deemed as if they were authentic data."

Characteristics of Fictitious Orders

Fraud in the form of fictitious orders can take various shapes. However, there are recurring patterns that can be detected early if you stay alert. Here are some of the most common signs:

1. Unclear or Suspicious Delivery Address

   Perpetrators often provide incomplete, hard-to-trace, or even fake addresses. This makes delivery and tracking difficult if problems arise.

   
   

2. Unverifiable Identity

   The name, phone number, or account used is usually fake or belongs to someone else. Even when contacted, responses are inconsistent or evasive.

   
   

3. Large Orders with Urgent Delivery Requests

   Another common trick is placing unusually large orders and demanding immediate delivery for various reasons. This is meant to pressure sellers into rushing without verification.

   
   

4. Cash on Delivery (COD) Requests

   Fraudsters often claim they will pay in cash upon delivery. However, once the courier arrives, the buyer suddenly becomes unreachable, refuses the package, or even denies placing the order.

   
   

5. Fake Transfer Proof

   Scammers may send a screenshot of a supposed transfer as proof of payment. Upon closer inspection, the evidence turns out to be invalid or deliberately manipulated.

   
   

6. Disappearing After the Order Is Shipped

   Once the goods are sent, the buyer can no longer be contacted—for example, by blocking numbers, deleting accounts, or simply ignoring all communication.

   
   

7. New or No Transaction History Accounts

   Often, the account used is newly created with no prior order history. While this isn’t always a red flag on its own, it can be an early warning sign to stay cautious.

   
   

Steps Business Owners Can Take to Avoid Fictitious Orders

Dealing with fictitious orders can be frustrating for small business owners. However, that doesn’t mean you can’t prevent them. With the right steps, the risk of loss can be minimized. Here are some strategies you can apply:

1. Carefully Check the Delivery Address and Location

   Many fraudsters use fake or incomplete addresses that make delivery impossible. Always ask customers to provide full and clear details, including block, house number, or at least a recognizable landmark. You can also use navigation apps like Google Maps to verify the accuracy of the address.

   
   

2. Verify Payment Proof Before Shipping Goods

   Don’t immediately trust a customer who claims to have made a transfer. Scammers often send fake transfer receipts in the form of screenshots.Make sure to check your account statement directly or monitor notifications from your payment gateway. Ship only after the payment is truly received.

   
   

3. Contact Customers Before Shipping

   Always confirm orders through chat or phone before dispatching. Ask specific questions such as the exact location or who will receive the package. If the buyer is difficult to reach or gives suspicious answers, postpone delivery until you have clarity.

   
   

4. Limit Order Quantity for New Customers

   Applying order or transaction limits can serve as an initial safeguard. For example, limit purchases to a maximum of 5 items or IDR 1 million for first-time buyers. If someone places a large order, request a down payment to filter out suspicious orders early on.

   
   

5. Request a Down Payment for Large Orders

   For bulk purchases, ask for a down payment (30–50% of the total). This helps cover initial production costs and also proves the buyer’s seriousness.Never start production or packaging until the down payment is received. This method is highly effective in preventing bigger losses.

   
   

6. Adjust Your Order Management Process

   You can also refine your order management system to filter suspicious orders. Set specific criteria to decide whether an order should be processed right away or requires reconfirmation. With the help of a CRM or modern POS system, you can view customer data in real time and more easily distinguish genuine from fake orders.

   
   

7. Use an Integrated Payment System

   Handling transactions manually leaves room for errors and fraud. That’s why Labamu offers a POS system that helps you record every order and transaction automatically and in real time. You can easily check transaction history directly from the dashboard, presented in a simple yet informative view. With this system, you can make faster and safer decisions without the hassle of manual checks.

   
   

Download the Labamu app today on Google Play or the App Store!