Should I refund fraud orders?

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Tourist
45 0 1

Hello Everyone! 

I have had several fraud orders on my website and was wondering whats the best way to deal with them? 

Should I refund the order? 

Should I wait to see if the money arrives on our side? 

Would appreciate any feedback!

Thanks Guys

Tom.

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New Member
12 0 0

Just received multiple fraud orders from a guy in Indonesia. Here are the details to ensure nobody else processes his orders:

1) Used multiple credit cards, 3 of which failed, then 1 succeeded. Details were of a woman based in Pensacola FL, USA. (billing address) - I won't post her name (except to say that her first name was Betty) or anything due to privacy concerns.

2) His shipping address was in Jakarta, Indonesia.

3) He claimed that he was Betty, and was shipping to his friend in Indonesia. (I emailed him to confirm the order details after becoming suspicious)

4) The order was placed from an IP address, which I looked up, and turned out to be in Jakarta Indonesia (surprise surprise!).

5) His email address name was the same as the person he was shipping to, who he claimed to be his friend. (silly mistake on his part).

6) Both his orders were over $100 and included the most expensive tracked shipping options. 

I cancelled and did not authorise the payment on any of his orders - explaining to him that the details were too suspicious. I suspect that he was using stolen credit card details, and if I did process the orders, I would probably receive chargebacks once the credit card companies/banks realised the transactions were fraudulent. 

Advice to  Tom D - immediately cancel the orders. Do not 'fulfil' or process the payments in any way.

Regards,
Sam

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Shopify Staff
Shopify Staff
22 0 5

Hey, Tom!

Sandra here from Shopify!

We would always recommend investigating a suspicious order as shown here. As Sam mentioned above, if you believe the order is fraudulent you should cancel and refund the order fully. Never partially refund a suspicious order either as the customer's credit card provider can still initiate a chargeback. Have a look through this guide for a full breakdown on how a chargeback works.

You should also consider installing a fraud app for advanced risk prevention.

Feel free to reach out to our support team any time as well. We're here 24/7 via chats, emails and phone. Just click 'talk to support’ for some more info!

Happy selling!   

Sandra 

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Tourist
45 0 1

Thank you for sharing your experience S Australian! 

Thank you Sandra, thats a big help.

Can I ask how to cancel the order? In the past I have just refunded the order but didnt 'Cancel' it? 

Thanks!!

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Shopify Staff
Shopify Staff
22 0 5

Hey Tom!

No worries at all! This guide will show you in full how to cancel and refund an order step by step ?

Thanks a mill!
Sandra 


 

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Excursionist
21 2 5

Hi Tom,

 

I'm dealing with a fairly high number of "high risk" orders (2-3 per day) and in my experience, the best thing to do is to simply cancel them and move on. It saves you a lot of headaches. If you wait and do nothing, you may get hit with a chargeback by your payments providers (and the associated fees).

 

We're using an app called "FraudBlock" (https://apps.shopify.com/fraudblock-fraud-prevention) for this - it automatically cancels high-risk orders so you don't have to manually comb through your orders.

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New Member
1 0 0

The problem is that it is not our fault and Shopify STILL takes some of the money.  How do we get that money back???


@SandroD wrote:

Hi Tom,

 

I'm dealing with a fairly high number of "high risk" orders (2-3 per day) and in my experience, the best thing to do is to simply cancel them and move on. It saves you a lot of headaches. If you wait and do nothing, you may get hit with a chargeback by your payments providers (and the associated fees).

 

We're using an app called "FraudBlock" (https://apps.shopify.com/fraudblock-fraud-prevention) for this - it automatically cancels high-risk orders so you don't have to manually comb through your orders.


 

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