Shopify fraud detection prevention is a major priority for any online store. It’s not just a matter of financial loss, but also the damage it does to your brand’s reputation.
There are a few key strategies for detecting high-risk orders on Shopify that will help you minimize your fraud exposure and maximize revenue. These include:
The first step is to review your orders. You can do this on the order detail page in your Shopify dashboard.
If you receive a flagged order, you’ll see a risk analysis summary on the order details page with a risk rating of “low, medium, or high”. You can manually cancel the order or use a third-party anti-fraud app that integrates with Shopify to automatically cancel orders for you.
Effective Strategies for Shopify Fraud Detection
You should also investigate all orders that are marked as high-risk. This is because it’s more likely to result in a chargeback, which can be costly as you lose a sale and pay administration fees on top.
What you should do next: If you think the order is suspicious, it’s important to verify a customer’s identity and credit card details before you fulfill it. This includes using a government-issued ID and a photo of the customer holding their credit card to confirm their name and address.
In addition, you can check if the billing address and shipping address on the order match. If the billing address matches, but the shipping address is different, this is a sign of fraud.