How to handle a medium risk fraud order in Australia?

[emaboz]

Hi,

I recently opened my shop located in Australia and noticed I received a medium-risk fraud order from the United States. They did not include an email only a phone number. Paid through Paypal. And chosen our untracked shipping option which I now have to remove as I realised untracked shipping would not support any cases if PayPal disputes occur. However, I can find their PayPal email as I got an email from PayPal of payment from them. They also only had 1 session on my store. It does state, however, "This Order is available for seller protection" from PayPal. However, the untracked shipment option says otherwise if I don't have proof of tracking number or should I just pay extra for tracking just in case..let me know if this seems suspicious. Their order total was $130 USD.

[made4Uo]

Hi @emaboz,

You did great. I would do tracked shipment since the shipping is from other country. I would cover the expenses of tracked shipment if it is below $10 since I see it was an error in your part. If it is quite expensive, I would contact the buyer through email using paypal email and asked them that for international shipment the price is different

[Moira · Accepted solution]

Hey @emaboz!

Based on the information you provided, there are a few factors to look at:

• Medium-risk fraud order: The fact that the order is flagged as medium-risk for fraud is a warning sign. While it doesn't necessarily mean the order is fraudulent, it does indicate that there are some red flags that PayPal has identified.
• No email address: The fact that the customer didn't include an email address is also a concern, as it makes it harder for you to communicate with them if there are any issues with the order.
• Untracked shipping: As you mentioned, untracked shipping could be problematic if the customer files a dispute with PayPal. Without proof of delivery, you might not be able to provide evidence that the item was shipped and delivered.
• Only one session on your store: The fact that the customer only had one session on your store is also a potential red flag. It's possible that they were just browsing and stumbled upon your store, but it could also be a sign that they were specifically targeting your store for fraudulent activity.
• High-value order: While $130 USD might not be a huge amount, it's still a significant purchase. Fraudsters often target high-value items in order to maximize their profits.

If you're unsure, it might be a good idea to reach out to the customer and ask for more information, such as their shipping address and any additional contact details. You could also consider upgrading the shipping to a tracked option in order to protect yourself in case of a dispute. Ultimately, it's up to you to decide whether you feel comfortable fulfilling the order or if you'd prefer to cancel it and issue a refund.

[MNonlineseller]

I have a hypothetical question about the "contact buyer" suggestion for a Medium Risk fraud analysis. 

Honestly, what could you ask them to get comfortable with the order? Hear me out. Let's say the order is fraudulent. Any information you received would have been provided by the criminal. If you contact them and ask any questions, they will be able to corroborate everything entered for the order. I cannot think of a single thing you would know as the seller that only the true buyer could answer. Also, they are unlikely to say anything except "Yep! I placed the order, please proceed!" 

I contacted Shopify Support with this question hoping to learn that attempting to contact the buyer would provide an additional layer of protection in the event of a chargeback. Basically the idea that you could credibly show you "took the right steps". But apparently this does not matter. 

Shopify basically said "feel them out." If the risk is that they made 3 payment attempts, ask them why. But I tend to get unsatisfying answers such as "I was typing the numbers wrong." So, really, what could you possibly ask a medium risk fraud customer to determine the transaction is--if fact--safe?