High Risk of Fraud but no indicators flagged. Any guidance?

[JakeHF]

We recently received an order which was flagged as having a High risk of fraud detected. The billing address provided was incorrect. As a result I cancelled the order (noting the reason as fraud) and emailed the customer stating that the billing address provided was incorrect and that we could not fulfil. I also sent a draft order to the customer so that they could checkout again if it was a genuine transaction. 

Later the same day the customer checked out using the draft order but it still flagged as fraudulent despite no indicators suggesting that the nature of the transaction was fraudulent. Has anyone experienced this before?

Grateful for any insight!

Thanks,

Jake

[JoesIdeas]

It just means the algorithm picked it up as high risk. Not all high risk orders are fraudulent orders (in my experience 20% - 30% of high risk orders are fraud).

This solution works:

1) Contact high risk order customer and ask for a picture holding their ID.

2) If the name matches the billing address it's likely legit.

In the event that a chargeback still gets filed, you at least now have visual proof to present for your side.

[Beacon-Jason]

Shopify's Fraud analysis isn't that great, to begin with. It's just a basic tool for you to let you know to be a bit more cautious about the order. Why don't you give a quick phone call to confirm the order?

In addition to the basic fraud analysis, there are other things you can check to see if the order is a fraud. Read this article that I've written on the topic to help you look at other signs of possible fraud. https://medium.com/@jason_80572/five-things-you-can-look-at-to-prevent-fraud-orders-from-happening-t...