High risk of fraud detected

Senlive
New Member
1 0 0

Hello,

first of all, I understand that this is not a unique topic and people had the same issue in the past, but since this is such an important topic and I have never experienced this before I would like to discussed this further.

Today I have a purchaser that Shopify flags them as High-Risk Fraud, and the reason is for the below:

 

  • Characteristics of this order are similar to fraudulent orders observed in the past
  • Billing street address doesn't match the credit card's registered address
  • Billing address ZIP or postal code doesn't match the credit card's registered address

What should I do In this case?

 

Your help is greatly appreciated.

-Senlive

Replies 3 (3)
Jason_Beacon
Shopify Partner
224 9 38

Hi @Senlive 

This is a common topic and in most cases, merchants that run into these problems for the first time can be a bit confusing for most.

I personally would suggest you cancel this order as more than one data point points to being bad. If it is a relatively low-value item and you believe this to be a good customer (which I doubt), then protect yourself further by shipping it with signature confirmation.

Finally, get yourself educated on future fraud by researching the topic and possibly even paying for a fraud app which can be quite beneficial when you start to scale your business.

I hope this helps you and feel free to let me know if you want me to go deeper on the topic.

 

Decrease fraudulent orders, stop chargebacks with Beacon. The most customizable fraud and risk management system built for Shopify businesses

https://apps.shopify.com/beacon
JoesIdeas
Shopify Expert
1669 143 428

In the data I've analyzed, about 30% of high risk orders are fraudulent or result in a chargeback.

I wouldn't cancel em, here's what my team does:

1) Contact the customer to let them know their order triggered their automatic security system (give them the reasons you posted here).

2) Ask them to take a selfie holding up the ID that matches the order.

3) Apologize for the inconvenience, tell them you don't mean any disrespect but there are scammers out there that cause damage to the business, this just a safe guard.

 

You should know from the response if it's legit or not. If they get angry or make excuses, most likely fraud.

• Creator of Order Automator (automation app to save you and your team time on admin tasks)
• Shopify developer for +10 years
• Contributor on the Speed Boostr blog
• Guy who likes to help people
Lynn8
New Member
1 0 0

Some may have already suggested, but be sure to contact the buyer and ask for a copy of their ID and front/back of the credit card. 

I had one and happened to Google the address (8952 Northwest 24th Terrace Doral FL) and some people were sharing how hackers used that mailing address to receive merch and then chargeback weeks later saying they never received it.  

Also, I recommend added one of the fraud prevention apps to your store - I use the FraudBlock Fraud Prevention by ShopFox in the Shopify store.