I have an order that is marked as possibly fraudulent.
He called me and I told him I needed him to send me a picture of his driver’s license and credit card so I could match up the name and address with the credit card. Is there a better way to verify things?
What is the best thing to do in this situation?
What do I do about the money? (his “payment”?)
Jim
Hi @Jimbo4 ,
Thanks for reaching out. There could be several reasons why an order is marked high risk. However, you’re taking the correct steps to help prevent your business from being a victim of fraud. How the order is handled is up to your discretion but there are several steps you can take to validate the order. For this, I would recommend reviewing our fraud prevention help doc as it provides information on how to validate the order, and how to prevent fraudulent orders in the future.
If you decide that the order is fraudulent, or that you do not want to accept the risk, then you will want to ensure you cancel and refund the order. Leaving the order as-is will leave you open to a chargeback dispute which will cost you more in the long run as you’ll not only be on the hook for the cost of the order, but also the chargeback fee. You can find more information on chargebacks here.
All in all, if the customer is not able to verify their order (provide a screenshot of the CC with their name on it, the address doesn’t check out, the phone number is invalid, etc.) then it would be best to cancel and refund the order. If you’re unsure of how to cancel and refund an order then I’d recommend reviewing our help doc here.
Let me know if you have any questions.
Hello @Jimbo4 ,
This is Gina from flareAI app helping Shopify merchants get $6Million+ in sales from Google Search, on autopilot.
When you come across a possible fraudulent order on Shopify, it’s crucial to safeguard yourself and your business while ensuring a positive customer experience. Requesting customers to send pictures of their driver’s license and credit card can pose risks and compromise their personal information. Here’s a recommended course of action.
Thoroughly examine customer information like name, shipping address, email, and phone number for any inconsistencies or suspicious signs.
Reach out to the customer via secure channels such as phone or email to validate order details. Ask for identity confirmation and request additional information if needed. Exercise caution during phone conversations to verify the caller’s identity.
Leverage Shopify’s fraud detection apps to evaluate the risk level of the order and gain further insights.
If you’re uncertain about an order’s authenticity, seek assistance from Shopify support. They can provide expert guidance and access to fraud prevention resources.
Regarding the money
→ Notify your payment processor (e.g., PayPal, Stripe) about the suspicious transaction.
→ Share any relevant evidence or documentation supporting your suspicion of fraud.
→ Cooperate with your payment processor’s investigation and provide the requested information.
→ Assess your refund policy and consider adjusting it to protect against future incidents. Communicate the guidelines clearly to customers.
Let me know if you have any further questions.
Gina
Honestly this isn’t helpful at all. I’ve contacted customers via phone, gotten solid responses (they had all the details right - name, address, phone number, etc. and named a competitor in my very specific niche that they claimed to have also considered buying from), and still had a charge back appear a few days after delivery. Screenshots of a credit card are easily faked. How do I actually VERIFY the order is real?
Does making them pay through PaylPal give higher security?
Thanks for your reply.
Our built-in fraud analysis tool helps you identify orders that could be fraudulent. Review high-risk orders to avoid potential chargebacks. The fraud analysis tool provides indicators for each order to review.
For example:
Using PayPal can enhance security for transactions, as it offers buyer protection and secure payment processing. It also keeps your customers’ financial information private.