High risk of fraud order

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Tourist
8 0 0

Hi

 

We just received a high risk order with the following indicators below. 

Regarding the two red ones:

  • Characteristics of this order are similar to fraudulent orders observed in the past (is this to be understood as behaviour observed from this same specific customer in the past?)
  • Shipping address is 395 km from location of IP address (why is this an issue? Could it be someone away from home ordering for instance someone on holiday using a local computer?)

Screenshot 2020-03-11 at 16.33.19.png

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Shopify Staff
Shopify Staff
174 25 35

Hi, @Foxtail !

 

Thanks for your post! A fraudulent transaction can result in a chargeback, which can cause you to lose money. Shopify's built-in fraud analysis uses machine learning algorithms to help bring suspicious orders like this one to your attention. The decision is ultimately yours to fulfill or not though.

 

Shopify's machine learning algorithms look at a combination of an order's characteristics, as well as customer and shop history. The algorithms determine whether the order's characteristics match patterns identified from the millions of past legitimate or fraudulent orders seen across Shopify's platform. Shopify's machine learning algorithms look at a combination of an order's characteristics, as well as customer and shop history. This means every order placed on your store benefits from being on the Shopify platform. The recommendations shown on an order are based on the machine learning algorithms using more data points than displayed in the order.

Calling the customer is always a good idea on these orders. You can also use a service such as 411.com to make sure the phone number is located in the same area code as the billing address. Fraudulent customers often use invalid phone numbers. If someone answers the phone, then ask them some simple questions about their order and see how they respond. Do they know the addresses, phone number, email, and name they used? Are they struggling to give you simple pieces of information?

 

Hope this helps!

Oliver | Social Care @ Shopify 
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 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog

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Tourist
8 0 0

Hi Oliver

 

Thanks for the detailed reply!

 

No phone number was given, but I emailed him asking for the front and back of the credit card and some sort of ID card and he sent me both (ID was his passport) along with this message:

 

"Hi there

 
To be honest, I can not quite get what the issue is here but I can confirm that I placed the order. Also the document requested for is quite sensitive and I can not help but admit I am not totally convinced about presenting it.​ Please find attached a copy of my passport and card. If you still can not confirm the order,​ please make a refund of the charge made and I will be happy to look at other stores for the product wanted. Best
 
XXX"
 
I understand the risk of a chargeback, but wouldn't the case be in our favour if we have done what we're supposed to and sent him what he ordered? I mean how would the bank still make a chargeback if we can show that he has received the items he bought?
 
Based on his reply do you still suggest we cancel?
 
Thanks again!
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Tourist
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By the way, what was the issue with the shipping address being 395km away from the IP address? What could this indicate? #rookiequestion

 

 

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Shopify Expert
1151 57 346

 it might indicate the card has been stolen, and is being used by someone else in a completely different location. Not always the case, as many people travel, and use their cards abroad, so not always 100% indication of fraud

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Tourist
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Hi Rockpapercopy

 

Thanks for the reply.

 

So worst case scenario would be that this Joseph Cropper has had both his credit card and passport stolen and the thief has now created an email and acts like him sending me the back and front of the mentioned?

 

Considering his reply above and him sending the photos would you still call it high risk? 

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Shopify Staff
Shopify Staff
174 25 35

Hi @Foxtail !

 

Thanks for getting back to us on this. It's a very complex system but it seems like you have a really good grasp on what goes into things and how to handle this. It will never be fully clear how the bank will make the decision in these situations. If there are stolen card details, the rightful cardholder could rightfully be submitting their chargeback through their bank. It is my personal opinion that the response you've received is adequate however this is fully a decision that is up to you as the business owner. Where are you located? If you're in the United States you might be eligible for Fraud ProtectFraud Protect will reimburse you for fraudulent chargebacks and protect your bottom line. If you aren't in the United States, or for whatever reason are ineligible, there are other options available for chargeback protection on the Shopify app store like NoFraud

 

Hope this helps!

Oliver | Social Care @ Shopify 
 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog

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Tourist
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Hi Oliver

 

Thank you for your reply.

 

So we decided to cancel the order and refund his money, but now it's not possible.

 

Why is that? He has requested a chargeback which is a +115DKK fee extra on top of the initial amount for the order.

 

Seems weird that we have to pay for being wise and not following through on a High Risk of Fraud order.

 

Best regards

Alain

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Tourist
8 0 0

Also, the initial amount paid was €1050. He has requested af chargeback of €1115,74?


@Foxtail wrote:

Hi Oliver

 

Thank you for your reply.

 

So we decided to cancel the order and refund his money, but now it's not possible.

 

Why is that? He has requested a chargeback which is a +115DKK fee extra on top of the initial amount for the order.

 

Seems weird that we have to pay for being wise and not following through on a High Risk of Fraud order.

 

Best regards

Alain


 

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Shopify Staff
Shopify Staff
174 25 35

@Foxtail 

 

If the cardholder's bank makes a chargeback, then the bank takes the disputed amount from you right away. If refunding the customer was still made possible, you may be on the hook for the refund AND the chargeback. Because of this, once a chargeback is initiated the option to refund is removed. If you win the chargeback, then you get the disputed amount back, and Shopify refunds the chargeback fee. If the cardholder wins the chargeback, then the disputed amount is returned to the cardholder.

Oliver | Social Care @ Shopify 
 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog

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