The fraud analysis flagged an order in my store as "High Risk". In this order, the billing address is not available for the credit card, and the IP address of order placement is 80 miles away from the shipping address.
We reached out to the customer via email, and customer provided the following to us:
1) Passport showing customer's name and ID.
2) A government letter issued in March 2019, matching the shipping address.
3) A partially covered credit card showing partially customer's name and portion of card number.
Is this enough to determine this is an authentic or fraudulent order? How can we protect ourselves as a merchant to prevent chargeback?
Thank you Shopify experts!
Nick here from Shopify. Great question!
I completely understand any concern you might have, and it is completely up to you whether or not you want to accept the order. Personally, after the customer provided the information you asked for, I would tend to lean on the side of accepting the order, but again, that's just me and it is your call at the end of the day. Shopify has a helpful guide going through everything you need to know about Fraud analysis here which you might also get some use out of.
It could also be worth looking into a fraud protection app from the Shopify App store to help improve your security for orders in the future. Let's take a look at some of them below:
Some of the apps are free like the Shopify developed app Fraud Filter but a lot of the third party developed apps do have a cost.
Hopefully, this helps give you some clarity and some options moving forward.
All the best, Nick
As I mentioned above, it is completely up to you whether or not you want to accept the order. By finding out more information as @fungtutor did it can help you determine if the order is legitimate or not. If you feel the extra information isn't enough evidence then it's probably best to not accept the order as difficult as that might be. Also mentioned in the reply it's definitely worth your time to take a look through the help guide about Fraud analysis from Shopify here to learn about some of your options or how to go about the next steps. If you have any other questions about this, don't hesitate to let me know.
Hi @fungtutor, adding to what Nick has said above, there are a couple of things that you can do to de-risk your store:
1. Ensure that your customers enter their CCV as well as their ZIP code properly. This can usually be achieved through your payment provider settings
2. Highly recommend installing "FraudBlock", which automatically cancels fraudulent orders so you don't have to worry about accidentally fulfilling them: https://apps.shopify.com/fraudblock-fraud-prevention
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