High Risk of Fraud order

[LI-1]

We've been receiving a CRAZY number of orders (16 and counting today) flagged as High Risk of Fraud.  These are ALWAYS for the cheapest product on our website.  We switched from auto to manual card capture so we aren't getting stuck with the Shopify Payment processing fees (btw very uncool of Shopify to charge us the fee if it's auto-captured and we cancel the order before fulfillment).  Does anyone know why this is happening?  We cancel each of these orders so I can't figure out the benefit for the scammers - or are they just testing if a card works on our site and then going elsewhere to place a larger order?  Please help!

[PageFly-Kate]

Experiencing a high volume of fraudulent orders, particularly for low-cost items, often indicates fraudsters testing stolen credit cards. They may use these small transactions to verify card validity before making larger purchases elsewhere. You can consider the solutions below to see if it fits your case since I can't investigate further on this:

Mitigation Steps:

1. Fraud Detection Tools: Utilize Shopify's fraud analysis features and consider advanced apps like Signifyd or NoFraud for enhanced protection.

2. Manual Payment Capture: Continue with manual payment capture to review potentially fraudulent orders before processing.

3. Additional Security: Implement CAPTCHA and additional verification for new or suspicious orders.

4. Monitor Patterns: Identify common traits in fraudulent orders (e.g., IP addresses, locations) to set up filtering rules.

5. Consult Shopify Support: Report the increase in fraud attempts to Shopify for further assistance and guidance.

Regarding payment processing fees, note that Shopify's policy typically does not refund fees on captured transactions, even if canceled later. Manual capture helps avoid these fees by allowing order review before capture.

[LI-1]

This is super helpful... thanks so much!  One follow-up - how do I implement CAPTCHA? Thanks!

[Reuventr]

I’ve seen this exact pattern dozens of times—multiple low-value orders flagged as High Risk, often hitting your cheapest item over and over. You’re absolutely right to switch to manual capture.

Here’s what’s most likely happening:

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What’s going on:

These aren’t real purchases—they’re card testing attempts.
Fraudsters use stolen card info and try small orders on low-risk-looking sites to see if the card is “live.” If the payment goes through (especially with auto-capture), they know the card works and will use it elsewhere for a much larger fraud.

Even if you cancel the order right after, if the card was charged, it’s enough to validate the card. That’s why manual capture is critical.

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How to stop it:

1. Keep manual capture on (you already did the right move)
   That alone prevents the fraudster from knowing whether the card worked, since no funds are actually captured.

2. Block repeat attempts by IP, BIN, or device
   If you have access to order logs, look for patterns—same card prefix (BIN), email domain, IP region, etc.

3. Add a verification layer even for low-value flagged orders
   Even a basic “reply with last 4 digits of your card + ZIP code” can deter card testers and let legit customers through.

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We actually built a Shopify app called FraudGuard to handle exactly this. It adds its own fraud analysis on top of Shopify’s, auto-captures clean orders, holds suspicious ones, and runs a customizable verification flow depending on risk level—even on low-value orders if needed.

If you're interested, you can join the early access list here:
https://fraudguard.carrd.co/

I’ve seen stores get 20+ of these in a day. You’re not alone—it’s fixable with the right setup.

— Reuven | Founder, FraudGuard (Shopify app)