Top 10 COD Fraud Tactics in Pakistan 2024
Pakistani e-commerce stores lose Rs 2-5 lakh monthly to COD fraud. Here are the most common tactics fraudsters use in 2024 and how to protect your business.
COD Fraud Stats in Pakistan (2024)
- • 35-40% of COD orders are fraudulent without verification
- • Average loss per fake order: Rs 1,500-4,000 (product + courier fees)
- • 523+ Pakistani stores have stopped 85% of fraud using AI verification
- • Fraud rate spikes to 50%+ during sales/holidays
The 10 Most Common COD Fraud Tactics
Fake Jazz/Zong Numbers
Scammers use temporary SIM cards or virtual numbers that get disconnected after order placement.
Fraudsters buy cheap prepaid SIMs, place orders, then dispose of the number before delivery.
Accounts for 35% of COD fraud in Pakistan
Use AI voice verification to validate numbers before shipping
Computer Plaza Organized Rings
Organized fraud groups in Karachi, Lahore computer markets coordinate bulk fake orders.
Groups of 10-20 people use multiple SIMs to place orders, overwhelming small stores.
Average loss: Rs 50,000-200,000 per incident
Track patterns across orders, flag multiple orders from same IP/device
Vague Address Scam
Orders with incomplete addresses like "Street 5, near mosque, DHA"
Deliberately vague to make delivery impossible, resulting in return-to-sender costs.
Costs stores Rs 400-800 per order in courier fees
Require complete address with house/flat number during checkout
Cash-on-Delivery Order Rejection
Customer refuses package at delivery, claiming they never ordered it.
Order placed by fraudster using someone else's name/number, real person rejects.
Lost product + courier charges both ways
Voice verification calls to confirm order authenticity
Bulk Order Abandonment
Large orders (5-10 items) to drain inventory, then reject at delivery.
Competitors or fraudsters tie up your best-selling inventory.
Lost sales opportunities + courier fees for multiple items
Require partial advance payment for orders above Rs 10,000
High-Value Item Targeting
Fraudsters specifically target expensive items (phones, laptops, designer wear).
Higher reward for successful fraud, lower detection due to fewer orders.
Single fraud incident can cost Rs 30,000-100,000
Extra verification for orders above Rs 15,000
Sale/Discount Exploitation
Spike in fraudulent orders during sales when verification is rushed.
Fraudsters know stores are overwhelmed, reducing verification thoroughness.
40-50% of sale orders can be fraudulent without verification
Maintain verification standards during sales, don't skip steps
Repeat Fraud with Different Numbers
Same person using multiple SIMs to place orders after being caught.
Fraudsters change phone numbers but use similar addresses or patterns.
Average fraudster attempts 3-5 orders before giving up
Track address patterns, device fingerprints, delivery location history
Late Night/Weekend Orders
Orders placed when customer service is unavailable for verification.
Fraudsters exploit timing when stores can't call back to verify.
Weekend orders have 25% higher fraud rate
Automated AI verification runs 24/7, even when you sleep
Testing with Small Orders
Fraudsters place small test orders first to check your verification process.
If first order succeeds, they place larger orders worth thousands.
Gateway to bigger frauds if not caught early
Verify ALL orders regardless of size, maintain consistent standards
Stop All 10 Tactics with AI Verification
Shippley's AI voice verification system automatically detects and blocks all these fraud tactics in under 60 seconds per order. 523+ Pakistani stores have reduced fraud by 85% in their first month.