Simply just cancel the order and don't ship the item if there is any indications of fraud. As a merchant, you have a choice to decide whether or not you want to do business with the customer as it is your business.
If you insist on shipping out the item (Highly not really recommended), then it's also wise to use signature confirmation so that you know the item was derived to the intended address. If a chargeback opens up, at least you have strong evidence that the item was derived to the intended recipient.
There is also several different fraud apps (free and paid) out there ranging from chargeback insurance to having even more advance fraud analysis.
I hope this helps you.
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