Fraud?

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Tourist
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summary:

a guy with an extremely common name

4 transactions on 2 different cards

latest transaction was cc via apple pay

3 of the 4 transactions triggered shopify risk alert

3 different ip locations, two were far from shipping destination

same shipping address,  an average suburban home.  billing address match shipping address

3 different emails were used for the 4 transactions

uses iphone/imessage 

sounded like a nice guy over the phone.

long version

Had a large order (large 3 digit) last week, shopify marked as medium risk probably in large part because the ip of the order is in europe.  Talked to the guy, who's name is extremely common.  he seems like a nice average small business guy.  asked him to pay cash and offered him a cash discount.  instead, he placed a larger order (small 4 digit) online with a different card and a different email address, same european ip location, and shopify marked this one high risk.  talked to him again, he said he'd redo the transaction with vpn turned off.  again shopify market as high risk although the ip address is just 20 miles from shipping destination.  refund all 3 transactions.  

texted him back and forth this week.  again, seem like a nice guy.  tried to get him to place an order with debit/cash which he initially agreed to but he placed another order with the same card he first used a week earlier, via apple pay.  the transaction was marked as from a different US location 200 miles from the shipping destination.  no shopify risk alert this time.

it's a bit bizarre but I can't tell if it's fraud or not.  if it's fraud, can he get billing address to match shipping address?  want to believe the guy.  How do I reduce the risk of being defrauded? 

 

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Shopify Staff
Shopify Staff
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Hey, @oomomi!

Lulu here from the Shopify Support team. Thank you for getting in touch and I'll be more than happy to help you out with your question.

I definitely understand how this is a tough situation. Shopify's risk analysis algorithms look at a combination of an order's characteristics, as well as customer 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. The decision is ultimately up to whether you fulfil the order or not. Do you feel comfortable fulfilling the order after getting some more details off the customer? Can you clarify with him why he keeps placing the order with a different card than what you have explained to him? 

This fraud prevention guide has some excellent tips on dealing with fraudulent orders. I would recommend having a good read of it. I would also always recommend downloading the Fraud Filter app, which provides an additional layer of security on your store. You can also block certain customers from placing orders if you wish with that app.

At the end of the day if you don't feel comfortable fulfilling the order then I would strongly advise against it because high-risk orders can result in chargebacks which can cost you money in the long run. (Read more about chargebacks here). If you do decide to fulfil the order then be sure to keep all evidence of contact with the customer so that you will have proof for the bank if a chargeback does occur. I hope that helps but if you have any other questions, please let me know!

Lulu | Social Care @ Shopify
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Tourist
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Thanks for the response!  While there are question marks on this transaction, the billing address matches shipping address seems like a very positive factor.  I understand if shipping to a different address, that increases the risk.    so one question I hope some can speak from experience - have we seen fraud that used a card with shipping name/address matches to billing name/address?

I guess there's also the possibility of that once the package is shipped, the buyer may request an address change directly with UPS?  can that type of change be prevented?

 

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New Member
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Good to see you're at least repsonding to the thread. But please tell me how you resolve the issues when your merchants showcase fraudulent products and never ship the items after taking the money from the customer's hard-earned money? The same thing happened to me as is hapenning to thousands of poor customers. I paid for the product but it is never shipped nor coummunicate any enquiries. I tried taking help from the Caht SUpport team but unfortunately I was told that the merchants information cannot be shared. Please help me.

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