High risk of fraud detected

Senlive
New Member
1 0 0

Hello,

first of all, I understand that this is not a unique topic and people had the same issue in the past, but since this is such an important topic and I have never experienced this before I would like to discussed this further.

Today I have a purchaser that Shopify flags them as High-Risk Fraud, and the reason is for the below:

 

  • Characteristics of this order are similar to fraudulent orders observed in the past
  • Billing street address doesn't match the credit card's registered address
  • Billing address ZIP or postal code doesn't match the credit card's registered address

What should I do In this case?

 

Your help is greatly appreciated.

-Senlive

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Jason_Beacon
Shopify Partner
162 5 24

Hi @Senlive 

This is a common topic and in most cases, merchants that run into these problems for the first time can be a bit confusing for most.

I personally would suggest you cancel this order as more than one data point points to being bad. If it is a relatively low-value item and you believe this to be a good customer (which I doubt), then protect yourself further by shipping it with signature confirmation.

Finally, get yourself educated on future fraud by researching the topic and possibly even paying for a fraud app which can be quite beneficial when you start to scale your business.

I hope this helps you and feel free to let me know if you want me to go deeper on the topic.

 

Decrease fraudulent orders, stop chargebacks and expand globally with Beacon. https://apps.shopify.com/beacon
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JoesIdeas
Shopify Expert
1188 104 288

In the data I've analyzed, about 30% of high risk orders are fraudulent or result in a chargeback.

I wouldn't cancel em, here's what my team does:

1) Contact the customer to let them know their order triggered their automatic security system (give them the reasons you posted here).

2) Ask them to take a selfie holding up the ID that matches the order.

3) Apologize for the inconvenience, tell them you don't mean any disrespect but there are scammers out there that cause damage to the business, this just a safe guard.

 

You should know from the response if it's legit or not. If they get angry or make excuses, most likely fraud.

Founder of Speed Boostr (Shopify optimization experts, theme customization, custom app development).
Creator of Shopify Analyzer (first performance analysis tool for Shopify sites, free for the Shopify community).
Creator of Order Automator (auto tag orders and customers + auto fulfill orders + email notifications).
Creator of Theme Scientist (A/B testing app) and Tip Jar (add a tip button to your store).
Lynn8
New Member
1 0 0

Some may have already suggested, but be sure to contact the buyer and ask for a copy of their ID and front/back of the credit card. 

I had one and happened to Google the address (8952 Northwest 24th Terrace Doral FL) and some people were sharing how hackers used that mailing address to receive merch and then chargeback weeks later saying they never received it.  

Also, I recommend added one of the fraud prevention apps to your store - I use the FraudBlock Fraud Prevention by ShopFox in the Shopify store.

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