Fraudulent orders cost you products, shipping costs, and chargeback fees. Here is how to spot and prevent them.
Use Shopify Fraud Analysis
Shopify automatically analyzes orders for fraud risk. Each order gets a risk level — low, medium, or high. Review medium and high-risk orders before fulfillment.
Red Flags to Watch For
Different billing and shipping addresses. Express shipping on expensive items. Multiple orders from the same IP with different cards. Orders from countries where you do not advertise. Email addresses from free providers that look suspicious.
Verify Suspicious Orders
Contact the customer to verify the order. Call the phone number provided. Check if the email address exists. Ask for additional identification if needed. Legitimate customers will understand.
Use Fraud Prevention Apps
Apps like NoFraud and Signifyd automate fraud detection. They guarantee approved orders against chargebacks. Worth the investment for high-volume stores.
Set Order Rules
Use Shopify Flow or automation apps to flag or hold orders that meet certain criteria — high value, international shipping, multiple quantities of the same item.
Enable AVS Verification
Address Verification System (AVS) checks that the billing address matches the cardholder's address on file. Enable this in your payment gateway settings.
Fraud prevention is about vigilance. Review orders carefully and trust your instincts.