I have a high risk fraud alert that seems a bit weird and I'm not sure whether I should fulfill or cancel. Any advice is appreciated!
So, the only alerts on this order are:
Red - Characteristics of this order are similar to fraudulent orders observed in the past
Grey - IP address and that the state of the IP address is different to the shipping and billing (6 miles away from billing)
The billing and shipping are the same as to the one registered to the card. CVV and zipcode are correct. The person visited our shop a few times before placing the order($150), used our promotion code, which is not common with fraud orders. They also subscribed to our newsletter before the order was placed a few days later. They used the search engine DuckDuckGo to reach our store when they placed the order, not sure if this makes a difference.
Usually I will go ahead and cancel high risk orders, but this one appears to be genuine, so I'm torn about it.
Why don't you give the customer a phone call to confirm the purchase? If you are still unsure, try giving your payment gateway provider a quick call to see what they think of the transaction and to see if what you can do to get covered in case of a true fraud order. They might ask you to send the shipment via signature required on delivery.
Thanks for the suggestion, Jason. I'll be emailing them to ask for a copy of driver's license. We are using Shopify Payment Gateway, so I should just contact Shopify?
I'm wondering if a payment gets flagged only if they suspect it's a stolen card or is it also possible that the cardholder frequently dispute charges?
Shopify Payment Gateway is handled by Stripe. It's best to contact them directly instead of Shopify in the case, they won't give you much information to go by. I believe Stripe would have more direct answers than Shopify would since they would be the ones handling the chargeback in case there would be any.
There are many reasons why an order might be flagged. Sometimes it could be falsely flagged (False positives) or sometimes it can be based on data that Shopify has. It's not a really good system by any means to stop, reduce, or detect true fraud orders since it gives the merchant so little details about flagged order.
For more resources, consider reading the following articles that I've written and Shopify's official article on the subject.