Shopify's fraud analysis tool helps identify potentially fraudulent orders. Based on the risk level—Low, Medium, or High—you can take different actions. Here's a guide for handling each level of fraud risk:
1. Low-Risk Fraud Analysis
Orders flagged as low risk are usually safe to fulfill. However, it’s good to be cautious if something seems unusual.
What to Do:
Review the Order Details: Ensure the billing and shipping addresses match.
Confirm with the Customer (Optional): If you're still unsure, contact the customer via email or phone to confirm their order details.
Proceed with Fulfillment: If no red flags are present, you can confidently process the order.
2. Medium-Risk Fraud Analysis
Medium-risk orders require closer attention. While they may not always be fraudulent, they carry a higher chance of issues.
What to Do:
Contact the Customer:
Send an email or call to confirm the order details (e.g., shipping address or cardholder information).
Ask for additional verification, such as a copy of an ID or confirmation of payment.
Verify the Payment:
Check the transaction with your payment gateway to ensure the payment method is valid and authorized.
Delay Fulfillment: Hold the order until you can confirm its legitimacy.
Cancel If Unsure: If the customer cannot verify their information or you suspect fraud, it’s safer to cancel the order and refund the payment.
3. High-Risk Fraud Analysis
High-risk orders are highly likely to be fraudulent. Proceeding with these orders could result in chargebacks and lost revenue.
What to Do:
Cancel the Order Immediately: Do not fulfill high-risk orders to protect your business.
Refund the Payment: Issue a refund to avoid potential chargeback fees.
Block the Customer (Optional): If the customer’s information appears fraudulent, consider blocking their IP or email address to prevent future fraudulent attempts.
Additional Tips for All Risk Levels:
Enable Manual Payment Capture:
By default, Shopify captures payments automatically. Switch to manual capture to review orders before processing payments.
You can adjust this setting in your Shopify Admin under Settings > Payments.
Install a Fraud Protection App:
Apps like FraudLabs Pro or Signifyd provide additional fraud detection tools and even offer insurance for chargebacks.
Set Order Limits:
Restrict high-value orders or large quantities to minimize the risk of fraudulent purchases.
Monitor Repeat Offenders:
Track suspicious email addresses, phone numbers, or IPs that appear in multiple flagged orders.
What Happens if a Chargeback Occurs?
If you fulfill an order that turns out to be fraudulent, the cardholder’s bank may issue a chargeback. Unfortunately, this usually results in losing the revenue and the product. Following these guidelines can help minimize this risk.