Fraudulent order?

[axolotl]

Hello,

So I got an order for 26.00 from someone in Indonesia, with a gmail account. I am new at this and learning, a lot. The ip address checks fine as being over there, but shopify is considering there is high fraud risk. What would be the next step? I can probably write to him and say I'm checking the information, but how would I determine if it is fraud?

Update: I sent an email confirming the order and he responded, confirming it. To me, all that proves is that the email works, but not that the order is not fraudulent. Any comments will be very helpful.

Thanks.

GH

[SandroD · Accepted solution]

Hi GH,

why did Shopify consider the order to be high risk? It should provide you with a detailed analysis when you click on the fraud classification. Usually, Shopify is pretty spot-on with their classifications, I'd just cancel the order and move on to avoid the potential headache of a chargeback. If it's a high-value order, you could ask the customer for more documentation, e.g. a utility bill with the same shipping address.

[axolotl]

Hi Sandro,

There was a discrepancy between the addresses, billing vs. shipping. I did cancel it after requesting further info and not getting a reply back.

Thank you!

[Zekester]

Does shopify charge the sellers any fees for cancelling & refunding the order immediately after noticing it's a high risk/fraudulent order?  Is the proper way to cancel an order is to cancel then refund.. or do we just cancel and no need to refund?

[SandroD]

Shopify recently changed their policy around refunding processing fees when issuing a refund: https://imgur.com/a/TyzKvJg

In the past, they've refunded the entire amount (including fees) to merchants. Going forward (since March 1, 2020), they'll keep the payment processing fees if you refund an order.

One thing you could do to stop this is to change your payment processing settings to "Manually capture payments" (instead of automatically capturing payments). What this means is that you would need to manually click on a "Capture payment" button before fulfilling the order.

We're using an app called FraudBlock (https://apps.shopify.com/fraudblock-fraud-prevention) to automatically cancel "high risk" orders. The app also restocks and refunds the order, super useful!

[Zekester]

Thank you.

[MaskMore]

Hi Axo, 

I wrote a small guide to help others understand what that is and how to react. 
https://community.shopify.com/c/Payments-Shipping-Fulfillment/FRAUD-ADVICE-Characteristics-of-this-o...

I hope it will help you.

All the best, Bruno.