How to Deal With High Risk Orders On Shopify?

Last Updated | January 16, 2024

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What is a high-risk order in Shopify?

“High Risk” can carry multiple meanings which completely depends on the context. Here, in High Risk Order, it refers to an order that was flagged by the eCommerce platform system as being potentially fraudulent. The reasons for being flagged can vary from having different billing and shipping addresses of totally different countries, their mismatches billing address and IP addresses, or any other suspicious flags that could rate your order as a high risk order.

In this article, you will explore the highly creative ways that How to Deal With High Risk Orders On Shopify?

How to Avoid Fraudulent Orders on Shopify?

Risk Analysis Feature is built-in Shopify store design services to assist you in your likelihood of avoiding fraudulent interactions. As long as you are using Shopify integration solutions of Payment gateways, you will get this easy to use and understand the integrated feature. Here’s how the feature will assist you:

It will flag all the suspicious orders which potentially fraudulent. It will also grade on rates of risk from “low, medium, or high” in the analysis summary of the Order page.

If you email notifications are on subscription, all these flagged orders instantly automated for a quick review.

However, it is not necessary that a flagged order is a fraudulent, but it is really crucial that you run an analysis on any potentially fraudulent transaction so to avoid the risks of loss.

Key Steps for How to Deal With High Risk Orders On Shopify?

You should follow these steps to view the risk analysis for order analysis,

Step #1: Go to the admin section of your Shopify store.
Step #2: Navigate to the “Orders” section on your Shopify admin panel.
Step #3: “Orders” page will show all the new placed order. To view any potentially fraudulent order, click on it, and you will then be able to view the risk analysis.
Step#4: Find “Fraud analysis” in the bottom right corner of the order page.
Step#5: To fully examine click on “View full analysis”.

What are Shopify’s Fraud Indicators?

Shopify has developed a built-in fraud detection technology which is based on machine learning, and it is trained across all transactions Shopify integration solutions. It is a very powerful tool that means a high degree of accuracy. If Shopify store design services red-flags an order, you should take it under consideration and be very sure before sending any goods.

Nevertheless, it is not an infallible tool either. The natural reaction should be the temptation, especially for high-value orders, to investigate and try to find some assurance whether the placed order is genuine or not.You can get further details on how to use these fraud tools on Shopify’s help pages.

What Are Some Red Flags Dealing With (Potentially) Fraudulent Orders In Shopify?

Although, Shopify not always rate order as a high risk potential of fraud, you must look into the clear indicators which are worth looking for especially when you are trying to understand if an order is fraudulent. There are always multiple ‘smoking guns’, you just have to exercise your judgement to build a case of fraudulent against an order with a few reference points.

How to Avoid Fraudulent Orders on Shopify using risk analysis features?

Shopify’s Fraud is a great starting tool to understand the risk involving in your orders. This covers the later step that is ‘what comes next after a fraudulent order is flagged’, or if any un-flagged order that looks suspicious to you. You have learnt how Shopify integration solutions covers the analysis and builds a case to make sure your own judgement comes out apt around the risk of an order and how you can to do further investigation and even to contact a customer to ask for more information.

The hired Shopify developers will continue growing with the ever evolving AI to our clients avoid costly mistakes by best Shopify optimization solutions, but there is no probability of solving the situation completely. A little training of front-line order processing staff, an escalation process to review suspicious orders and a little judgement can avoid almost all fraudulent orders. With the use of the right tools you can prevent the repeated abuse and stamp out repeated offenders and avoid your store being seen as an easy target.

What does Shopify Risk Analysis feature look for?

Shopify’s Risk Analysis feature is a mixture of tests that are generated to look for potentially suspicious features in an order to determine whether it is a fraud or not. These tests are classified as:

Address Verification System or AVS: the AVS test works on the numeric of the customer’s details like address, zip code, and credit cards to match the details of the issuers of the card. If it didn’t get matched it is suspected as a potential fraud.
Card Verification Value or CVV: On the back of the credit card there is a 3 or 4 digit number that is known as a CVV number. Asking for this CVV is a way to ensure the customer has their card physically, otherwise there is is no way to digitally cache a CVV code
IP Address check: This test checks the customer’s location and their billing location. If they don’t match it turns out to be a red flag in Shopify’s Risk Analysis as a fraudulent.

How To Investigate A (Potential) Fraudulent Order in Shopify?

Verify the IP address

IP address verification checks the customer’s location and their billing location. If they don’t match it turns out to be a red flag in Shopify’s Risk Analysis as a fraudulent. The availability of free tools also helps in quick check of the geographical location, ISP, and other information about a specific IP addresses.

Call the phone number on the order

Calling a customer on the provided phone no is also another great way to confirm the place order. With this, you can also use services like http://411.com to ensure that the phone number and the billing address are located in the same area code.

Use a search engine to look up the email address

Frauds most of the times do not add matching billing and shipping addresses. However, do keep in mind that people might be sending someone else gifts or ordering on behalf of someone else. If multiple orders are place with same shipping address but with different billinaddresses can be a fraudulent order as well.

Investigate AVS (Address Verification) or CVV (3-digit code) verification failures

If the AVS or CVV verifications fail, you should take this order under a closer consideration being as a fraud.

Pay special attention to high-value orders

User identity verification becomes a must if you receive order which is higher than normal, substantially.

Use apps for increased protection

Thanks to the advancement in technology you can also install different app to fraudulent for even advanced risk mitigation. You can find so many apps easily available at app store to serve unique yet interesting purposes.

FAQs:

How To Cancel An Order As Fraudulent?

Canceling an order means that you want to halt the order placement process in order to help the staff or the fulfillment services center from wasting any time and effort on orders that either show red flags of fraud or the customer themselves have asked for it. The order can also be canceled when a product or the ordered item is not available in stock.

The follow-up actions would be needed depending on the state of the order while you are canceling it,

State of order	Follow-up Actions
No item fulfillment, but already paid for	You need to refund the amount, there two ways to refund the payment Refund is automated Send it later If third-party is involved you have to follow-up with the procedure.
Item fulfillment is done, but payment is not made	Use returns process so that the items can be returned.
No item for fulfillment, no payment is done	It will automatically go to archive, ig not then manually archive it.

After the cancellation of the fraud order, all the details of the products and items that are restocked and refunded are stored in the order’s Timeline.

After you cancel an order, the changes in payment status appear as follows:

Voided when the payment wasn’t captured.
Refunded when the payment was fully refunded.
Partially refunded when the payment is partially refunded for the canceled order.
Pending payment status is an order that cannot be cancelled.

On Shopify eCommerce development services the following steps are needed to be taken to cancel a fraud order

Go to Orders from your Shopify admin.
Click on the fraud order you want to cancel.
Click More actions > Cancel order.
Now, manage any of your payment refunds:
Leave the default Refund $ value selected to issue a complete refund.
Select Refund later to issue a full or partial refund later,.

Uncheck Restock items, if you don’t wish the refunded items to be restocked in the inventory.
From drop down menu select the reason for cancellation.
Uncheck Send a notification to the customer if you don’t want to notify your customer of the cancellation
Click Cancel order.

List down the more Advanced Approaches To Fraud Prevention using Official Shopify partners company?

Transactions which are not customer authorized are known as fraudulent. These fraudulent transactions most of the time results in a charge back that becomes a cause for you to lose money. Shopify’s fraud analysis is a built-in feature that uses machine learning algorithms for pointing out the suspicious orders and bring them to your attention. There are several ways you can investigate a suspicious order, but if you are more keen about filtering these orders further the following are the advanced features to catch a fraud order;

Shopify eCommerce expert development services now have more advanced features to prevent these frauds, they are

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