I have been selling on Shopify for over 2 years very smoothly with very low rate of chargeback. But recently, starting from Jun 2nd, my business received a considerable number of high risk orders with all Chinese names and they all share one shipping address which is 6215 NE 92nd Dr, Portland Oregon 97253 and it is a freight forwarding company. My staff sent emails to verify them but we did not ask for ID card or credit card info with matching name so we trusted them at some point and fullfilled the orders. Consequently, now we are receiving a lot of chargeback from these customers. They are abusing the chargeback system to get our products for free. It is also our fault to not verify these customers correctly and took the risk. Has any of you experienced this before? And do you know what will happen to our Shopify account if we got so many chargeback from high risk orders? I am so desperate right now because I know that we lost all of those products, have to deal with chargeback and fees, and get no money from Shopify because shopify payment is on hold due to this situation.
I’m sorry to hear that, it’s really frustrating how chargebacks work, almost always gets sided with the customer, even when they’re clearly scamming.
I think every store I’ve worked with that does volume gets chargebacks, it’s part of online business, so it’s not abnormal to get some chargebacks.
I don’t know how many is too many but if you’re worried about it you could try contacting them, to be proactive about it.
Moving forward, couple of tips:
For all high risk orders do a check with customer support (ask for identification and even a selfie if you want to be extra vigilant, and include in the email a basic agreement that they will not file a chargeback, that may help you win the case if they do).
Just explain to the customer that you’ve been the victim of scams lately, you don’t save the information, this is just a security measure.
If it’s not a high risk order, you’ll want to then identify the type of buyer (like same address like you said) and cancel their orders. If you’re doing low volume and check every order then just cancel the order. If you don’t want to manually check, Order Automator can identify orders based on data like this, and notify your support staff (or even auto cancel if you want). There’s also a free version of Order Automator that includes a Fraud Guard, to alert staff or cancel high / medium risk orders. That could help you stay on top of those type of orders easier.
Good luck, I hope you’re able to stop the scams happening to you.
Just got a fraud alert on the same address: 6215 NE 92nd Dr, Portland Oregon 97253 and googled the address to find your post, so thank you.
I canceled immediately. Shopfiy should have some sort of alert, and you should probably cancel most of them. A few fraud alerts have been valid once we’ve spoken to a customer and realized they were on an VPN for work (IP not recognized).
But definitely avoid 6215 NE 92nd Dr, Portland Oregon 97253 and this one:
8344 Northwest 66th Street 12290 Miami FL 33166 (anything at 8344 Northwest 66th Street).
I would avoid all “logistics” or “import/export” shipping places. I see a lot of eBay posts saying these places do receive the items, but claim they never did, or do a chargeback. And you also lose every shipping claim if it’s landing there and has tracking that says it landed there.
Chargebacks are beyond frustrating and yes always lost as the seller.
Check your abandoned carts, too. I was up late one night and watched live as someone (or a robot) attempted almost 40 checkouts using different names and cards and address, all within minutes, but also for the same high value item (we sell gold, so it’s tricky). All didn’t make it past Shopify that time, thank goodness. So we knew to be on alert if that item sold we’d be checking every aspect of the seller.
Update: Thank you guys for the responses! Here is the update after all chargeback. I received 40 chargeback in total and lost about $12,000 value. I’m still in process of disputing the chargeback but I have no hope that I will get that money back. Sean from Shopify Safety and Trust team helped me go through the verification process and also advised me to install Fraud Control app so I have been using the app called NoFraud Fraud Protection. I also set up Auto cancel on high risk orders in this app so now I feel more relieved that those high risk orders cannot scam my business again, despite the fact that I lost so much money. Shopify released the money on hold after Sean and I worked together so thank you Sean and Shopify teams that are trying to protect sellers like us. I learnt a valuable lesson from this and it will not happen again for sure.
The second, I see the terms high risk of fraud detected. I will cancel it. And send them an email like this for example:
Subject: Important Update Regarding Your Recent Order
Dear customer name
Thank you for placing an order with us! We appreciate your business and value your trust.
However, after a thorough review, we regret to inform you that we are unable to process your order at this time. Our fraud detection system has flagged this transaction as high risk due to certain indicators.
For security reasons, we have canceled the order and refunded the full amount to your original payment method. We apologize for any inconvenience this may cause.
If you believe this decision is in error or have any questions, please feel free to reach out to our customer support team. We are here to assist you.
Again, we apologize for any inconvenience, and we appreciate your understanding.
Best regards,
your name Customer Support Team store name customer support contact info
June 14, 2024 and we just had a"High risk of fraud allert" on an order from “wang hai, 6215 NE 92nd Dr, C/O DNF616, Portland Oregon 97253, United States”. Same address and when i googled it your post came up. I chose to cancel the order and not deal with this. Question though - do i choose refund now? or is their even a payment to refund? I have not read much into “chargebacks”.
Hi! You can cancel and refund the order if there hasn’t been a chargeback. If you have received a chargeback on this order, please review our guide on how to resolve a chargeback first.
We had the same experience. First Wang Hai placed several orders to 6215 NE 92nd Dr, C/O DNF616, Portland Oregon 97253, then they switched to 131 Rosemary Rd, suite 202, Dover DE 19901. The most recent attempt is still using the freight forwarding/consolidation company’s shipping address in Dover, DE, but the name on the order is Andy Xue.
I received an order from a Chinese company that wanted to ship to the same address. I was shocked that this did not come up as a high-risk fraud alert. Feeling suspicious about the order, I looked up the address and found an article that raised my concerns. If one of my employees had processed the order without my oversight, it would have been shipped. I cannot afford chargebacks.
My fraud filter failed to detect this issue, so I canceled the order and issued a refund.
We do the same. If it’s medium or high risk, we cancel straight away with a similar email but ask them to contact us and pay by direct deposit. We’ve still had 2 chargebacks for Low risk, which is a huge improvement when we didn’t use shopify payments.
I am really sorry to hear about all these scammer to abuse the chargeback system, but I am a serious buyer, and I use the forwarder address to ship to my country for saving the shipping cost or those product does not provide shipping to my country, my order often getting cancelled because of those bad seeds abuse the forwarder address for chargeback.
Hey, I totally get it—I used to deal with friendly fraud while working at Expedia, and it was incredibly frustrating to see people abusing the system and getting away with it.
I might be able to help. I’ve been working with chargebacks for over 10 years, and I’d be happy to review your recent cases and give you a free audit with some tailored recommendations.
I also built an app that pulls evidence from multiple systems and helps automatically dispute chargebacks—specifically designed to fight friendly fraud. I’m currently looking for a few pilot testers, so if you’re interested, no pressure—just happy to help however I can.
Let me know if you’d like to connect or have a quick look together!
I’ve seen this exact situation before—clusters of high-risk orders going to freight forwarders under different names, then the chargebacks hit. It’s frustrating, especially when payout access gets frozen and you’re left dealing with product loss and fees.
You’re right that relying only on basic email replies for verification leaves too much room for abuse. These buyers know how to exploit gaps in the system—and once the package ships, it’s almost impossible to recover.
Here’s what I’d recommend moving forward:
1. Turn on Manual Capture immediately
This gives you full control. You can review the order and run verification before the funds are captured. If something feels off or the customer doesn’t respond, you just void the payment—no shipping, no processing fee, no dispute risk.
2. Use tiered verification before fulfilling flagged orders
For medium-risk: ask for the last 4 digits of the card + billing ZIP
For high-risk or freight-forwarder addresses: request an ID or utility bill with a matching name
Some stores also use a $0–$1 authorization charge with a code in the statement descriptor (like “STORE*845209”)—it’s a clean way to confirm the buyer actually controls the card
3. Verification protects you during chargebacks too
Even if the buyer disputes the charge, documented proof of verification tied to the order (card info, ID, billing match, etc.) dramatically increases your chances of winning the case.
That’s actually why I built FraudGuard—a Shopify app that adds its own fraud analysis on top of Shopify’s, holds suspicious orders before capture, and automates the right verification flow depending on the risk level. It’s been especially useful for stores handling $150–$500 orders to risky shipping zones.