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!
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.
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Manual Payment Capture: Continue with manual payment capture to review potentially fraudulent orders before processing.
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Additional Security: Implement CAPTCHA and additional verification for new or suspicious orders.
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Monitor Patterns: Identify common traits in fraudulent orders (e.g., IP addresses, locations) to set up filtering rules.
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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.
This is super helpful… thanks so much! One follow-up - how do I implement CAPTCHA? Thanks!