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shopify fraud

Published on: January 3 2023 by pipiads

How to handle high risk orders || Shopify Help Center

So you have an order marked as High Risk.,You might be wondering, what does this mean, and what do I do now?,Keep watching to find out everything you need to know about handling high risk orders.,Hey everyone, it’s Aly with Shopify.,Today I’m going to show you how to handle orders that are marked as high risk.,So what exactly is a high risk order?,An order is marked as high risk when Shopify suspects that it might be fraudulent.,Shopify uses machine learning algorithms to determine the risk of an order.,This system is continually improving to always better identify fraudulent orders.,For example, the algorithm knows that different billing and shipping addresses are more likely,to be fraudulent.,For this reason these orders are most likely to be flagged as high risk.,Fraudulent orders usually happen when someone uses another person’s credit card to make,a purchase without the cardholder’s permission.,If you fulfill a high risk order, there is a chance it can lead to a chargeback.,Chargebacks happen when the credit card holder disputes the credit card charge.,The bank that issued your customer’s credit card can take the purchase amount from you,and refund it to the credit card holder.,When the chargeback is requested for a fraud-related reason, this is called a chargeback due to,fraud or a fraudulent chargeback.,The decision to reverse funds is made by the bank that issued the credit card, and not,by Shopify, and Shopify is not able to cover reversals from banks that are issued.,Too many chargebacks on your store can cause Shopify to disable your payment processing,,and remove Shopify Payments from your store altogether.,Chargebacks due to fraud can cause you to lose both money and product.,That's why it's very important to take extra precautions when an order is marked as high,risk.,Ultimately it’s up to you to decide if you’re comfortable fulfilling an order that’s marked,as high risk.,To make an informed decision, you should gather as much information about the order as you,can.,Take some of the following steps before you fulfill a high risk order.,Number one.,Consult the order’s Fraud analysis.,On the order details page, scroll down to the “fraud analysis” card, and click “View,Full Analysis”.,Here, you see a rating of either “low, medium or high” risk, and find “Indicators”,with more information.,If you’re on the basic plan and are not using Shopify Payments, then you don’t see,the risk rating, but you still have Indicators.,Green indicators are details that are usually seen on legitimate orders.,Red indicators are details that are usually seen on fraudulent orders.,Grey indicators give you additional information about the order that could be useful.,This list of indicators doesn’t cover everything that Shopify uses to assess the risk of an,order.,So, an order marked as medium or high might not always have red indicators.,Number two.,Verify the IP address associated with the order.,Under “Additional information”, you can see the IP address.,An IP address is a set of numbers that identifies each device that uses the internet or network.,Think of it like a house address, but for computers or other devices on the internet.,An IP address can help you learn more about where an order came from.,You can use the online tools I’ve listed below to look up the geographical location,,internet service provider, or other details about a specific IP address.,Here’re some things you should look for:,Is the customer's IP address located in a different general area from where they claim,to be?,Is the IP address for a web hosting company?,Is the IP address a proxy service IP address?,If the answer is yes to any of those questions, then you should contact the customer to verify,the authentikity of the order.,Number three.,Call the number on the order.,Calling your customer is a good way to check if an order is fraudulent.,Fraudulent customers often use invalid phone numbers.,If your customer answers the phone, then ask them some simple questions about their order,and see how they answer.,See if they know the addresses, phone number, email, and name used on the order.,Notike if they’re struggling to give you simple pieces of information?,If so, this could be an indicator that this is a fraudulent order.,You can also use a service like 411.com to look up the phone number and check that it’s,located in the same area code as the billing address.,Number four: Search for the email address.,You can search for the email address on Google or another search engine to check if the email,address was used in documented fraud attempts.,Number five.,Verify that the shipping and billing addresses match.,People who commit fraud often give a shipping address that is different from the billing,address.,You can use Google Maps to map out addresses and visualize the distance between them.,If the distance between two addresses is significant, like if they are in different countries or,continents, then that could be an indicator that the order is fraudulent.,Keep in mind that legitimate shoppers sending a gift or buying on behalf of someone else,might use different addresses.,Number six.,Check to see if there are multiple orders with the same shipping address, but with different,billing addresses, and different customers names.,This is usually a sign of fraudulent orders.,After you’re done investigating an order, it's up to you whether or not you want to,cancel or fulfill the order.,It’s important to remember that if you do decide to fulfill a high risk order Shopify,does not return money lost due to fraudulent charges.,If you decide that an order is legitimate, then fulfill it like you normally would.,But if you decide that an order is too high risk and you’d like to cancel it, follow,these steps.,From the shopify admin, click “Orders”.,Then, click the order that you want to cancel.,Click “More actions”, and then “Cancel order”.,From the pop-up window, select “Refund”.,Under “Reason for Cancellation”, select “Fraudulent”, then select whether or not,you want the customer to be notified of the cancellation.,The notification the customer receives will include the reason for cancellation.,To finish, click “Cancel Order”.,Now you know what a high risk order is, and some steps you can take to help protect your,business.,For more videos from the Shopify help center subscribe now.,And for more information, visit help.shopify.com.

Shopify UPDATE ! Avoid Chargebacks and Fraudulent orders with Shopify Protect

hey guys it's the ecom bull here and,today i'm bringing you fresh news,shopify has just released a new free,fraud prevention program and it's not,even a prevention program because this,is meant for when actually fraud already,happen when you get scammed and somebody,purchases something from your website,with a fraudulent card and then they,file a chargeback shopify will cover the,chargeback fees which is normally 15,plus the cost of the order and this is,free you don't have to add protection or,anything like that this is included as,long as they pay with their credit card,using the shopify pay or one of the,payment systems that they allow then you,get it if you think that this is not a,big deal well let me tell you that i,have been suffering from fraud since i,started e-commerce it doesn't matter,which platform i use and it doesn't,matter which marketplace even on amazon,i have had to pay chargeback fees for,orders that were fraudulent that their,system didn't catch i was still,responsible for it until now on shopify,or woocommerce or magento you know you,will have filters that will tell you,okay this order seems fraudulent or this,order seems legit you know sometimes you,will get an order let's say from morocco,and it's from items that you don't,really sell that often and it's a large,order you know that that's probably,fraudulent but sometimes you get orders,that are super hard to decide if it's,legit or not and then you know you just,risk it right you risk it you send the,products and then a month later you get,the charge back you lose the product you,lose the money you lose the chargeback,fees it's not pretty it's not,encouraging it's it just feels really,really bad and that is why i'm super,excited about this new feature you don't,need to set this up it is automatik but,let me show you the official,announcement and what orders what,fulfillment methods are covered alright,so this is the email that shopify sent,me i got early access but it will soon,be rolled out to all of the stores and,check this out,keep your money shopify protect the name,of the program right covers the total,order cost and chargeback fee on,fraudulent orders so your revenue,doesn't take an unexpected hit,huge,and then this is the shopify page here,you can see you know all the details and,if we look closely fulfill eligible,orders within seven days and provide,tracking number from usps ups canada,post dhl fedex or the shopify,fulfillment network so that's,the only thing you need to be eligible,for this and well of course shopify has,to tell you that it has protection and,i'm gonna show you where that will be,located so here on the orders page you,will be able to now filter and see which,orders have the shopify protection it's,still not working right now if i choose,something you know,not protected or protected or protection,active is not working you know i got,super early access but i assume that,this will start popping up there and,showing everything and also i assume,that they will add a column that has the,shopify protect,just to you know to get a little icon,here saying that hey this order is,protected and,that's it guys thank you so much for,watching all the way to the end remember,to like and subscribe if you want to,stay up to date with all the news in the,e-commerce world i'll try to keep you,posted thank you thank you thank you i'm,out,[Music]

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How To Deal With Fraud Orders With Shopify | ULTIMATE Fraud Prevention Guide

yo what's going on everybody shriek,Canosa here so fraud orders how do you,deal with fraud orders now one thing we,can all agree on is nobody likes dealing,with fraud orders for several reasons,not only our fraud orders harmful for,your business because they lead to high,dispute rates but they also take a lot,of money from your pocket and make you,just feel all stressed out and all kinds,of emotions because when you shipped out,the order you also invested money and,actually buying the product then maybe,in the shipping cost of the product and,finally sending it out to the customer,so you did everything that you possibly,could but despite that the order turned,out to be fraud and in the end it,actually ended up costing you money the,interesting thing to know about fraud,orders is that banks often take the,customer side in such cases and that's,because when it is a fraud order it is,actually really hard for the bank to,resolve the case in your favor because,even the slightest evidence in their,favor could end up taking the case in,their favor so that's why it's really,important to know exactly how to deal,with these fraud orders so that you can,actually focus on building a good,business whether it is drop shipping or,an actual brand and take away the,attention from having to fill out the,form to fight these fraud orders but if,this is the first time you're watching,one of my Shopify videos pause this,video for literally two seconds and,smash that like button down below and,subscribe if you haven't already but,let's just jump right into it so dealing,with fraud orders let's start off by,toking about why should you even worry,about fraud orders in the first place,what is the big deal about fraud order,so let's start off by toking about the,cons of fraud orders how could they hurt,your business the first thing you have,to understand is that whether it is a,fraud order or a simple dispute,regarding any other issue the bank,actually charges you a certain fee,because of that dispute and if the case,is not found in your favor meaning that,you lose the case for the dispute the,bank takes a fee from you and this fee,can range from anywhere between $0 to,$100 and that depends on which payment,gateway that you use which is why it is,also important to use the correct,payment gateway provider but the charge,mat fees are so expensive that not only,are you having to lose the money would,the cost of the product itself but then,you also have to pay the,for that dispute so in the end you end,up losing a lot more money unnecessarily,and this of course hurts your business,because that means that's more profits,gone from your pocket which you could,have kept to maybe reinvest in the,business so that's one of the biggest,issues when it comes to dealing with,these fraud orders and again oftentimes,the bank actually sides with the,customer which is another issue because,again that leads to less money in your,pocket the second problem with fraud,orders is that increases your dispute,rate and one thing you want to know,about dispute rates if your dispute,raised goes above a 1% the payment,gateways actually start to keep a very,very close eye on you it's kind of like,a hawk looking down from the sky to find,its prey because at that point you're,under the payment gateways radar and any,small mistake or any increase in dispute,could actually lead to you getting,banned from that payment gateway so,again that's gonna just harm your,business in the end because you won't,have a payment gateway to use and,especially if you're in the process of,scaling a product not having a payment,gateway will lead to a lot of more,problems so that's one additional reason,as to why you want to avoid fraud orders,as much as you can because again an,increase dispute rate leads to just more,and more problems down the line the,third biggest problem with fraud orders,is brand reputation now what do I mean,by this exactly well when a brand starts,to face a lot of these fraud orders,they're dispute rates go up and if,people start finding out that other,customers are starting to dispute more,and more of their orders this is going,to ruin your entire brand's reputation,because then you lose trustworthiness as,a brand and when you lose,trustworthiness people are not really,that inclined to purchase from you they,would rather just Google the product,that you're selling and buy from,somebody else so when your fraud rate,increases your dispute rate increases,and your brand reputation starts to,decline because then customers are,complaining and not every fraud dispute,is going to be a fake of course there,are often a lot of fraud disputes that,may be real but if people start telling,other people about these disputes and,how they're having issues dealing with,your company that's just bad brand,reputation for you and that just leads,to more and more problems down the line,but in addition to that the worst part,is your shipping out the product to the,customer and since the customer disputed,the entire transaction Plus and you now,have to pay the chargeback fee you also,lost the amount of money that you're,invested in buying the product and it,could be a cheap product may,be $5 $10 or it could be something more,expensive in case you're dealing with,high tiket products and especially if,you're dealing with high tiket products,the cost of goods actually adds up over,time so the losses become much much,bigger when dealing with these disputes,and these fraud orders in addition to,the cost of the goods itself a lot of,people I also pay for the shipping cost,of the product or maybe they also pay,for some kind of insurance in case your,actual brand and you ship from your own,warehouse so that's an additional cost,and in addition so that you're just,losing profit overall dealing with these,disputes and these fraud orders and in,the end unfortunately all of this leads,to just an additional amount of stress,lost sleep and an unprofitable business,if you're not exactly sure how to deal,with these fraud orders and how to,prevent them in the first place of,course nobody likes dealing with stress,nobody likes losing their sleep over,such things and of course everybody,wants a profitable business so that's,why it's so important for you to know,exactly how to deal with these,chargebacks and fraud orders so that you,can focus more on building your business,but now that we've gone over the exact,cons of having to deal with these fraud,orders and how they can harm your,business let's tok about how you can,actually deal with them in the first,place so what are the first thing that,you should be doing when it comes to,dealing with fraud orders the first,thing that you want to actually do is,enable something called the Avs check,which is known as the address,verification system check and the CVV,check also known as the card,verification value check the Avs check,if you haven't guessed by the name,actually is a special cyst which if you,use Shopify payments or stripe or any,other payment gateway allows you to,actually enable and this is a setting,which you can enable within your payment,gateway if you're not sure as to how to,enable this just go ahead and go to your,payment provider and chat with the,support team to ask them how to enable,this but this should definitely be,enabled because in my own experience,this has saved me a lot of money because,it does a really good job of stopping,those fraud orders from coming in,basically a lot of people who do these,fraud orders or steal other people's,credit cards fail the Avs check because,sometimes they get the address incorrect,they're not exactly sure as to what the,real address is of the credit card and,the Avs system does a really good job of,making sure to stop those orders in,addition to the Avs system the CVV,system also does a great job of stopping,the,orders basically what the CVV check does,is it checks those special security code,sometimes a three digit or the four,digit code on the


High RISK of FRAUD! What To Do With Fraud Orders On Shopify? Keep Calm - We got you covered!

bonjour bonjour charles femmes expriment,leur feedback aux guichets,nemtsov millions nico et michael moore,kevin hell driver of order and fraud and,punishment 2,[Musique],il est très fort,faux et picture of the credit crunch,elle est celle des murs a dit le,ministre mardi vers 9 from being in du,not give them and is fixed response,trouveront donc comme un meeting au fin,fond du symbolisme yatagan des défis du,hautvent le fond,c'est ici à 19 heures de transactions de,photoshop cinéma de fellini à ce qu el,amine eva,leur avenir européen enjoy it and even,if we used on a été aussi une expo,photos de streetview a dios,[Musique]

2 Common Types of Fraud on Shopify 🕵️‍♂️(and how to avoid them)

for everybody out there that's already,sold on shopify,you know that there is no better feeling,than the first time,that app on your phone makes the,cha-ching sound,you get your first sale and you get,notified that let's just say,a thousand dollars is going to be in,your bank account within 48 hours,you're super excited you can't believe,you did it sales are finally coming in,let's go let's build a business so you,pay for the cost of goods sold,maybe 500 you pay for shipping if you,offer free shipping,maybe another hundred dollars you spend,six hundred dollars you think,i have four hundred dollars net profit i,am winning life is good and then for a,select few out there,possibly the people that don't pay,attention to this video a few days goes,by or a few weeks,maybe even a few months and you get,another notification,on your phone and this is one that,nobody ever wants to see,this is one saying that that order was,actually fraudulent,and that that thousand dollars that went,into your bank account is,now being deducted now you're out that,thousand dollars,you're out the money you spent for the,cost of goods sold and for shipping,and where you thought you had actually,made 400 you actually lost,600 in processing order that was,fraudulent,i do not want that to happen to anybody,that's the point of this video,and what i'm gonna do is share two,common methods of fraud on shopify,and how you can avoid them so easily the,most common type of fraud on shopify,occurs when people use stolen credit,cards,now this can happen a few different ways,it could be somebody with,no moral compass is walking down the,street they find a wallet,they pick it up they decide to use the,credit card online now yes that can,happen but it's,very rare the majority of these,fraudulent orders occur,from people or groups of people that,actually buy lists of stolen credit card,information online,and then just use as many of them as,they can all over the place on a bunch,of different websites and the good news,is,this is also the most avoidable type of,fraud that takes place on shopify,and the first thing that everybody,should do whether you're selling,inexpensive products or expensive,products,is whenever an order comes in be sure to,check the fraud analysis,in the back end of shopify this is going,to put the,credit card and the order information,through a series of automated checks,that shopify does and what you'll be,able to see here is if shopify deems,this order,as low risk medium risk or high risk now,medium you can make your own decisions,on,if something comes in as high risk more,often than not,it is fraudulent but whenever we see,this i do,like to verify it to see if it's,actually fraud or not and the easiest,way to do this is just call the number,that the person left on the order,information,and see if you can verify it's actually,a real person or a real business,also to search the address that comes,through with the order,and see if you could find the name of,the people that live there,usually this is a quick google search,there's a tool called spokeo.com,you can basically type in any address,and find the names of the people that,live there,pretty creepy but it works and it helps,you save money if shopify is telling you,an order has a high risk of being,fraudulent now the second most common,type of fraud on shopify,is what i'll refer to as email fraud and,the way this works,is you'll receive an email at your,store's email address,or maybe somebody will submit a message,through your store's contact form,and it'll say something like dear sir,madam,i'm interested in buying the most,expensive item on your store,or i'm interested in buying 50 pieces of,this item,xyz please respond with your pricing,and how you can accept payment right,something,vague like that and something that,doesn't need to be asked the person,sending the email can see the price on,your website,they can also see which methods of,payment you accept,so why do people send these emails well,if they're that vague it's typically,just to get a response,maybe you saying the price is you know,one two three and we accept,visa mastercard apple pay amex whatever,you accept right,now the way they'll respond from there,is by saying okay,thank you sir madam we would like to,place the order and we will provide,our own shipping carrier information,because i'm,shipping this item to my son or daughter,in zimbabwe at medical school right or,something ridiculous like that what will,happen is they can either send you a,bank wire from an account that they,stole,access to so somebody else's money which,of course you could be sued,so the person gets their money back or,what they can do is,start a bank wire from an account that,doesn't actually have sufficient funds,and you may see in your account that oh,i have a pending,incoming wire transfer of ten thousand,dollars,you think you're good maybe you let them,pick up the products and then guess what,the money never clears you're out the,money you're out the products,something else that's common with this,type of scam is maybe they have to pay,ten thousand dollars,they send twenty they send you an email,i'm so sorry i sent the wrong amount of,money,please send ten thousand dollars back,you send ten thousand dollars back,the full twenty thousand wire fails and,now you're out ten thousand dollars and,they're,sitting there laughing and again i'll,come back to where i started,this video i know in the beginning every,time you see a potential order or an,order comes in,it's exciting you want it to be real but,please do yourself a favor,re-watch this video if you need to so,you can understand what fraud looks like,before it becomes an issue and if you,know anybody out there with the shopify,store,do me a favor share this video with them,because i think it could save a lot of,new sellers a lot of money because in,the beginning we simply don't know,what we don't know,you

Shopify High Risk of Fraud Detected. Shopify Fraud Analysis. High-Risk Shopify Order [EXPLAINED]

hey everyone it's Jamie here from,Shopify masterclass and in this video,I'm gonna be going over high risk orders,in Shopify the fraud analysis I'm going,to explain what it means and what you,should be paying attention to so you,don't get credit card chargeback before,I dive into it I just want to say that,if you're into any of this content I,would love it so much if you hit that,like And subscribe button below I also,want to mention our sponsor profit calc,The one-click Profit calculator it's,going to allow you to skip your,spreadsheets and get back to Growing,your store with real-time calculations,all you have to do is select the date,range you're looking for and it's going,to do those calculations for you giving,you a ton of time there's a link in the,description below to access a 15-day,free trial and I'm also going to show a,quick video showing their full feature,set are you a Shopify business owner who,spends hours doing your accounting have,messy spreadsheets kept you from growing,your business discover profit cap the,affordable and easy to set up Shopify,app that crunches your numbers in just,one click it automatikally syncs with,all your accounts and expenses to,calculate your profit displaying,everything in an easy to read dashboard,so you understand your business in real,time start for free on the Shopify app,store today but first let's tok about,high risk orders where are they going to,show up in your Shopify store once,you're logged into your store on the,back end if you go to the left hand side,to orders and you click on any of the,orders it's going to give you a fraud,analysis and that's going to be on the,right hand side if you go down to the,bottom it's going to be under here and,this was a test order so there's no,payment method captured if you click,view full analysis it's going to give,you a detailed breakdown and so this,fraud analysis is provided by Shopify,and what they're going to look at is,several different indicators I'm going,to do a test to give it a categorization,of not fraudulent a medium risk and,there's also be a high risk so it's,going to look at several different,indicators so they're going to look at,the credit card verification value is,correct the billing street address,matches credit cards registered address,the billing and zip code match to credit,card registers address how many payment,attempts were there when it was made,with how many credit cards which billing,country matches where the order took,place you're also going to look at the,IP address used to place the order isn't,in a high risk internet connection,you're also going to look at where the,shipping is in relation to the IP,address so we'll look at several factors,in determining the risk of an order so,let's go over multiple scenarios so the,first scenario is that everything is,okay you're not going to get a,recommendation here so there's no need,to think about refunding anything to,prevent chargeback but then you start to,get into other scenarios where you have,a medium or a high risk so there are two,ways you can go about it you can do,nothing you can go fulfill the order you,can send out the package and hope,nothing comes in the way of a chargeback,and if you don't know what a chargeback,is it's when a customer submits a,complaint to their credit card company,to say hey I never ordered that product,no one else did it's fraudulent,therefore I want my money back and so,what happens next is that credit card,company in the bank will then tell your,Shopify store and it's going to freeze,the funds there it's going to freeze the,fines of the order Plus usually 15 on,top of that as a processing fee for the,chargeback request they can go one or,two ways one if they side with the,customer they're going to get their full,money back and you're going to pay full,refund there plus 15 and then you're,also going to incur the prod cost if you,shipped it out already if it goes in,your favor so you as the merchant then,you're not gonna have to do anything you,get your fifteen dollars back and you,get up the locked up funds so typically,this process can take a while it can,take 45 days even longer depending on,when the request was submitted and when,you submit your own response to that so,overall it can be quite negative here if,it is a fraudulent order as you'll be,paying the 15 plus the full refund and,if you ship the product out you're gonna,lose out on that as well so if you see,fraudulent orders you do get the option,to refund it right away and that's going,to cancel that transaction there so,let's say you receive an order it says,it's going to be a risk of being a,fraudulent order you can take a,proactive step issue a refund and not,send out those products that's going to,save you quite a bit of fees here and,the headache later on of having to fill,out these chargeback forms I know in my,personal experience I have taken the,risk before I'm saying hey this price,should be fine even though it says it's,high risk I'm going to send this order,out anyways and hope everything goes my,way but in some cases charge back and,submit it and then I go lose out on that,response and that's a lot of money out,of your pocket especially if you're a,solo drop shipper or a solo Shopify,founder you're using your personal funds,if you're not making many money at the,beginning this can be a huge expense,here and something that is no fun when,you're building up your Shopify store in,conclusion here you do want to be paying,attention to the fraud analysis again,it's going to be located in the bottom,right to your orders here you're also,going to get alerts if these are high,risk as well depending on your,notification setup but it's something,you want to pay attention to as you can,take a proactive step and issue a full,refund if it is looking like it's going,to be a fraudulent order there are also,apps available on the Shopify app store,where you can block certain customers or,certain geographical regions if you're,getting quite a few fraudulent orders,from certain ones this is going to,conclude the video here on high risk,orders explained I hope you got an,overall understanding now of the process,and why it's important to pay attention,to these indicators if you enjoyed this,video I would love it so much if you hit,that like And subscribe button below if,you have any questions leave a comment,that's the owner mention profit calc one,more time the one-click profit,calculator available on the Shopify App,Store it comes with a 15 day free trial,and there's a link in the description,below thank you so much for watching and,I'll see you in my next video,foreign