Fraudulent Order Medium Risk - My Very First Experience

New Member
2 0 0

Hello there, I just received my very first order and I was really excited for that.

The problem is that Shopify flagged it as "Medium" risk. I checked all the information but I still have serious doubts of how to proceed. The customer didn't give me any email address and mobile phone is from China (just like the Shipping address). The problem is that the Billing address is in the US and the credit card was rejected 2 times before succeeding the 3rd time. Also I googled the Billing address (1055 Dunhill Lane, Forney TX 75126, United States) but appears to be on sale here: https://www.realtor.com/realestateandhomes-detail/1055-Dunhill-Ln_Forney_TX_75126_M72947-46647

The name for Shipping and Billing address is also different but the surname is the same. No idea what to do!

These are all the details from the order I can provide:

Indicators
  • Some characteristics of this order are similar to fraudulent orders observed in the past
  • Card Verification Value (CVV) is correct
  • Billing street address doesn't match credit card's registered address
  • Billing address ZIP or postal code doesn't match credit card's registered address
  • There were 3 payment attempts
  • Payment was made with 1 credit card
  • Location of IP address used to place the order is Central District, Hong Kong SAR China
  • Shipping address is 897 km from location of IP address
  • The billing address is listed as United States, but the order was placed from Hong Kong SAR China
  • The IP address used to place the order isn't a high risk internet connection (web proxy)
Additional Information
  • This order was placed from IP address: 156.255.64.47
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Shopify Staff
Shopify Staff
203 12 30

Hi, there. 


This is Ren from the Shopify support team, thanks so much for your question and congratulations on your first order! I do totally understand your concerns about having the order flagged as a risk and wanted to talk about how you can proceed here. 

Shopify uses an automatic risk analysis function to study every order placed in your store. It checks for discrepancies against location and IP, mismatches between billing and shipping addresses and the validity of the CVV entered among other factors. The data allows the system to automatically assign a risk value to each order from low to high. It all falls under the umbrella of basic fraud detection. In the case of your order, we recommend reaching out to the customer in question and making sure that it was in fact a valid purchase. Whether you fulfill the order or not is entirely up to your discretion. 

That being said, here's an overview of our fraud analysis . Should you wish to have added protection for future orders, you can browse a selection of fraud prevention apps here.

I hope that helps! What are your plans for the upcoming Black Friday Cyber Monday? Any thoughts on how you're going to run your marketing? 

 

 

 

Ren | Social team @ Shopify
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Shopify Partner
47 0 7

I would personally cancel the order and quickly refund the money if you can't get in contact with the customer. You don't want the original customer to file a chargeback claim, which can cause you to lose more money because the credit issuer will charge you an additional fee.

 

I've written an article on how to further protect yourself using Shopify's data.

https://medium.com/@jason_80572/five-things-you-can-look-at-to-prevent-fraud-orders-from-happening-t...

 

If you want to do further investigation on future orders, we have a free tool on our website, which you can enter the customer's phone number to see if the phone number is real or fake. https://lizuna.com/api Just make sure you enter "+" then country code, and then the phone number to see what kind of phone number you're dealing with.

 

Decrease fraudulent orders, stop chargebacks and expand globally with Beacon. https://apps.shopify.com/beacon
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New Member
2 0 0

Thanks to both of you for your help!

I just noticed he tried to leave a message in the "Contact Us" form just before the purchase saying he was actually living in China and to ship it in his address in China.

I contacted him via the email provided asking for a valid ID and the cardholder name from the bank account. Is it enough to be more secure about the customer?

 

I also checked his mobile phone and it's a valid china mobile number.

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Shopify Partner
47 0 7

It's really up to you if you trust the customer or not. 

 

If it's a relatively low amount of money, then I would go ahead and process the order. If it's a high amount, then I would go as far as actually calling the customer to confirm their purchase.

 

I would not really trust customers sending in their documents as we've seen cases where scammers can send a fake or doctored image.

Decrease fraudulent orders, stop chargebacks and expand globally with Beacon. https://apps.shopify.com/beacon
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Highlighted
Shopify Staff
Shopify Staff
203 12 30

Sounds like you're on the ball! 

Calling is a great idea since you make verify whether it's a valid number and if you reach them be sure to ask questions about their order to see how they respond. Do they know all the basic details or are they struggling to give the information. In addition to calling, you may also want to search for their email address online to see whether it was used in documented fraud attempts. We have a guide here as well with further verification steps you can try.



 

 

Ren | Social team @ Shopify
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 - Was your question answered? Click Accept as Solution 

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