If a deal sounds too good to be true, it probably is. With summer in full swing, we are seeing a sharp increase in fraudulent tire and wheel transactions and the chargebacks that follow. Here’s what every auto parts retailer needs to know to stay protected.

Why Tire and Wheel Fraud Spikes in the Summer

We’ve covered this topic before, but the threat is back and it’s growing. Every summer, fraudsters ramp up their activity targeting auto parts retailers, tire shops, and wheel dealers. Large-ticket items like tires and rims are especially attractive to criminals because of their high resale value and the speed at which transactions can be processed.

We understand how tempting these orders can be. A large purchase comes in, and you’re thinking about payroll, rent, inventory, and keeping your business moving. Unfortunately, fraudsters know that too and they count on it.

How the Tire and Wheel Fraud Scam Works

One of the most common scams we continue to see involves customers ordering large quantities of tires or rims and requesting shipment to an address that is different from the billing address. Sometimes the delivery location raises immediate red flags and for good reason. We’ve seen shipping addresses turn out to be empty lots, alleys, abandoned buildings, and storage units.

Here’s the hard truth: if the real cardholder contacts their bank and says any of the following, the bank will almost always side with them:

• “I didn’t buy these tires.”
• “I don’t live anywhere near that town.”
• “I never approved this transaction.”

That leaves your business responsible for the chargeback, the product loss, and the dispute fees. In a high-ticket category like tires and wheels, a single fraudulent order can cost your business thousands of dollars.

7 Ways to Protect Your Business from Tire Fraud Chargebacks

Please protect yourself and your employees by slowing down and verifying suspicious orders before processing them. Here are our top recommendations:

• Avoid manual or keyed transactions for unusually large orders without first reviewing and verifying the customer’s information.
• Use Text to Pay strategically. This tool is great for customer convenience, especially for existing customers and standard in-shop vehicle repairs. For larger or unusual orders, take additional verification steps before processing payment.
• Always ask for a valid ID on local pickups. Verify that the ID matches the cardholder’s name on the payment method before releasing merchandise.
• Watch for large orders with no installation requested, especially when customers request shipment to a different address or appear to be rushing the transaction.
• Double-check all customer details before releasing merchandise. Cross-reference the shipping address, billing address, phone number, and customer name. If something feels off, trust your instincts and investigate further.
• Search unfamiliar delivery addresses online. If an address appears suspicious or doesn’t align with the customer’s information, do not move forward with the transaction.
• Train your employees to recognize fraud red flags. Encourage your team to escalate anything that doesn’t feel right, no matter how minor it seems.

A Few Extra Minutes Can Save Your Business Thousands

Taking a few extra minutes to verify an order today could save your business thousands of dollars tomorrow. Chargeback losses in the tire and auto parts industry are real, recurring, and largely preventable with the right processes in place.

At 360 Payments, we’re committed to helping businesses like yours reduce fraud exposure and navigate payment processing with confidence. If you have any questions or concerns about a transaction, don’t hesitate to reach out.

Contact 360 Payments Support

Call us: 855-360-0360

Email: Support@360Payments.com