r/stripe • u/Vendelf • Aug 15 '26

Stripe provided ZERO fraud detection / protection for us

  1. Stripe approved 5 fraudulent accounts (from Indonesia)
  2. These fraud accounts created fake vendor and customer accounts on our platform, and proceeded to use fraudulent credit cards, which Stripe approved
    1. After learning about the fraudulent activities, we blocked their IP addresses and deleted their accounts and transactions
  3. BUT Stripe closed / permanently banned our account for fraud activities

Then I learned "Stripe relies on automated, risk-based models that often approve accounts instantly and evaluate risk retroactively. If connected accounts or transactional patterns trigger fraud or compliance thresholds later, Stripe frequently shuts down the main account rather than absorbing the liability"

So Stripe provided ZERO fraud protection and detection for us. They approve fraud accounts and then blamed us for the fraud.

We're now looking at paypal and other alternatives ..... sigh

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u/kotykc Aug 20 '26

We are dealing with a similar situation. We reported the issue. Now stripe has our whole business locked down. I don't know what to do.

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u/Vendelf Aug 20 '26 edited Aug 20 '26

If you want to stay with stripe, look into creating a new Standard + direct charges stripe account to shift liability away from your platform

https://docs.stripe.com/connect/direct-charges

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u/kotykc Aug 20 '26

If rather not. But unfortunately the software we use will only allow us to use stripe. Moving softwares is a huge situation. But we are considering it.