High risk of fraud. What now?

New Member
5 0 0

I just recieved my first order. I was really happy until I saw that the order was marked as high risk of fraud :(

I really don't know what to do now. I don't want to scare off my first potential customer but I also don't want to be scammed. It was a pretty big order (100$)

I checked out the docs and did everything that is stated there but I am still not sure what to do. 

The looked up the IP and it does seem to come from a cloud provider (the host is https://www.colocrossing.com/)


The Fraud Analysis

Shopify Staff (Retired)
Shopify Staff (Retired)
423 0 89

Hi, Jerry!

My name is Jade, I am with the Social Care Team at Shopify.

I can completely understand your situation and many merchants feel the same way when they receive their first order and it is marked as fraudulent. It is 100% your choice of course if you wish to fulfil or to refund the order. A good tip to keep in mind is when you receive an order that triggers our Fraud Analysis, you can first contact the potential customer to confirm if they would like to proceed with the order. Ideally, the best way to do this is by phone but email can be used as well. If they respond, you can use your intuition and have a feel for this person and see if you are comfortable with proceeding with the order.  If they do not respond or if the phone/email is out of order, a refund is the best solution. 

A high-risk order such as this raises some red flags, especially with the Shipping Address being so far away from the IP address. If it were me personally, I would refund and cancel the order. You are not going to scare a customer by refunding and cancelling their order. They may be a bit disappointed but it is far worse if you receive a chargeback for that large of an order when you are just starting an online store and may not have the profit margins yet to cover the costs. 

Some merchants that I've spoken with have a rule of thumb that if the order is low risk they will contact the customer by phone and if it is medium to high risk they will refund and cancel the order. This is up to you based on what you feel is best for your business. We have a help document about our Fraud Analysis and how it works. 

If you have Shopify Payments completely set up in your store, I highly encourage you to make sure that your fraud protection settings are both turned on. To do this, login to your Shopify admin and click Settings > Payment Providers > click on the Edit button for Shopify Payments and check both boxes that say Decline charges that fail CVV verification and Decline charges that fail Zip code verification. Click Save. This will help reduce the possibility of fraudulent orders on your site. 

I hope this information helps! Best wishes with your business!

Jade | Social Care