Chargeback Fraud - Affecting Shop Status

[shopfy-2020]

We have a former international customer who placed multiple orders and then, weeks later, submit repeated chargebacks on every order under fraudulent claims ("not received", "fraud", "not shipped"). We've blocked the customer.

Our store is basically subject to fraud made in the form of chargebacks.

Chargebacks on a Shopify store can have significant financial and reputational consequences. They lead to lost revenue, potentially increased processing fees, and can even lead to account suspension or restrictions. Additionally, high chargeback rates can negatively impact a store's reputation and make it difficult to be listed on platforms like the Shop App.

We've not had any orders via the Shop App, which used to cover almost half our revenues, since this fraud started. 

What does Shopify do about incidents like this to protect sellers?

[dylanpierce]

Hello,

First off, sorry to hear you're in this situation. Fraudulent chargebacks are abusing the system that's designed to protect consumers and keep digital transactions trustworthy. However, because of this system, the burden of proof is on you the merchant.

A couple of questions:

1. In the screenshot, there's a couple of different names. How do know this is the same customer? By billing / shipping address?

2. Are these orders amount above average? Perhaps you have a pattern to be more stringent on, if the order is above X amount, then you know you'll require additional KYC information from the customer as a deterrent and for evidence against fraudulent chargebacks.

[shopfy-2020]

My question is not about the customer or how to check the order patterns. We're familiar with this and nothing unusual triggered for these orders.

The question is how Shopify manages the sheer amount of chargeback fraud for shop owners, which is then tagged to our store.