As I was ready to ship, I saw this note from Shopify
"High risk of fraud detected
Before fulfilling this order or capturing payment, please review the fraud analysis and determine if this order is fraudulent"
Has the payment been received? How do I know it’s safe to ship? And what can happen If I send it? When Shopify says “sold” doesn’t that mean they have already received and confirmed the funds? Why should I have to confirm customer identity, and what does that change anything? I’m a little confused here.
Thank you for reaching out and posting this question!
When the fraud analysis identifies an order as a risk, we recommend reviewing the fraud analysis indicators to determine whether or not you want to fulfill the order. It’s important to note that fulfilling high risk orders can result in a higher number of chargebacks and that can result in disabling payment processing and removal from Shopify Payments.
To help you with determining whether or not to fulfill a risk order, we’d recommend taking a look at our fraud recommendations. If an order is at a high risk of fraud, then you can attempt to verify the order, cancel the order, or refund the order. Verifying the order is a way to confirm the identity of the customer (or the credit card) and to protect yourself from a chargeback. Typically, if you’re unable to verify an order with high risk, then we’d encourage leaning to the side of safety and refunding the order.
Which fraud analysis indicators are you seeing for this order?
I fulfilled the order but after I sent it I regretted it. Here is the list given to me by Shopify
Negative
Characteristics of this order are similar to fraudulent orders observed in the past
Negative
Billing street address doesn’t match credit card’s registered address
Negative
Billing address ZIP or postal code doesn’t match credit card’s registered address
Negative
Shipping address is 3549 km from location of IP address
Neutral
Card Verification Value (CVV) isn’t available
Neutral
Location of IP address used to place the order is Buffalo, New York, United States
Positive
There was 1 payment attempt
Positive
Payment was made with 1 credit card
Positive
Billing country matches the country from which the order was placed
Positive
The IP address used to place the order isn’t a high-risk internet connection (web proxy)
A few hours after sending the order, I’ve received sold another item, this time an expensive one, and also a high-risk fraud. I did some research and quickly found that this is a stolen credit card scam. I will simply cancel all high-risk orders from now on. I hope this one $50 order does not cause any problem. I feel bad about the possibility someone is getting ripped off.
Thank you for following up and sharing the list of indicators!
Looking at the first four negative indicators, it is possible that the purchase was using a stolen credit card as the distance from the credit card’s registered location is really far away and the ZIP/postal code doesn’t match the card’s registered address.
I understand that you’ve already fulfilled the order. However, we do recommend refunding the order, so that the cardholder doesn’t file a chargeback against you. It’s important to note that having too many chargebacks on your account could impact the eligibility for your payment processor. That being said, if you’re unable to verify an order flagged as a risk moving forward, then we’d recommend refunding and cancelling the order.
If you’d like to consider an added layer of security, then we’d recommend taking a look at Signifyd or Fraud Filter. While Signifyd isn’t free, they offer insurance on approved orders so that you don’t have to worry about chargebacks. On the other hand, Fraud Filter is completely free and it can help you automatically cancel orders with high risk.
If you have any other questions on this topic, don’t hesitate to let me know!