Fraud Order Detection
Fraud order detection analyzes new orders against visitor behavior to identify potentially fraudulent purchases.
Why Fraud Detection?
Chargebacks from fraudulent orders can cost you:
- The product value
- Shipping costs
- Chargeback fees ($15-100 per incident)
- Payment processor penalties
- Risk of account termination
Early detection lets you cancel suspicious orders before shipping.
How It Works
When a new order comes in, Store Shield:
- Matches the order to visitor sessions
- Analyzes behavior during the shopping journey
- Calculates risk score based on multiple signals
- Flags suspicious orders for your review
Risk Signals
We look for patterns that indicate fraud:
Browser Signals
| Signal | Meaning | Risk Level |
|---|---|---|
| Bot detected | Automated browser | High |
| Multiple fingerprints | Different devices, same order | High |
| Headless browser | No display, likely bot | High |
| VPN/Proxy | Hidden location | Medium |
| Datacenter IP | Not a residential connection | Medium |
Behavioral Signals
| Signal | Meaning | Risk Level |
|---|---|---|
| Very fast checkout | Unusually quick completion | Medium |
| No product viewing | Went directly to checkout | Medium |
| Unusual hours | 3am local time purchases | Low |
| Single page visit | Only viewed checkout | Medium |
Session Signals
| Signal | Meaning | Risk Level |
|---|---|---|
| No prior sessions | First-ever visit → purchase | Medium |
| Multiple failed attempts | Trying different cards | High |
| Mismatched location | IP location vs billing | Medium |
Risk Levels
Orders are categorized:
| Level | Score | Action |
|---|---|---|
| Low | 0-25 | Usually safe to ship |
| Medium | 26-50 | Review before shipping |
| High | 51-75 | Strongly consider canceling |
| Critical | 76-100 | Likely fraud, cancel |
Viewing Fraud Orders
Fraud Orders Page
Shows all flagged orders:
- Order number and amount
- Customer info
- Risk level and score
- Individual risk signals
- Actions (cancel, mark safe, etc.)
Dashboard Widget
Quick view of:
- High-risk orders awaiting review
- Recent fraud statistics
- Fraud trends over time
Taking Action
Review Process
For each flagged order:
- Check the signals - Understand why it was flagged
- Verify customer info - Does shipping match billing?
- Look at order history - Repeat customer?
- Google the address - Freight forwarder? Known fraud address?
- Contact customer - Can they verify identity?
Actions Available
| Action | When to Use |
|---|---|
| Mark Safe | After verification, order is legitimate |
| Cancel Order | High confidence it's fraud |
| Hold for Review | Need more information |
| Block Customer | Repeat offender |
Prevention Tips
Address Verification
- Require address verification (AVS)
- Ship only to billing address
- Be cautious with PO boxes
High-Value Orders
- Call to verify orders over $X
- Require signature on delivery
- Consider requiring wire transfer
Red Flags to Watch
- Rush shipping on first order
- Different shipping and billing addresses
- Generic email addresses (numbers@gmail)
- International shipping to forwarding addresses
Reducing False Positives
Sometimes legitimate orders get flagged:
Common Causes
- Customers using work VPNs
- Mobile users with changing IPs
- Corporate/bulk purchasers
- Gift orders (different shipping)
How to Reduce
- Review before acting, don't auto-cancel
- Build a whitelist of verified customers
- Adjust sensitivity based on your business
Integration with Shopify
Store Shield works alongside Shopify's built-in fraud analysis:
| Feature | Shopify Fraud Analysis | Store Shield |
|---|---|---|
| Payment data | ✅ | ❌ (we don't see cards) |
| Visitor behavior | Basic | ✅ Advanced |
| Bot detection | ❌ | ✅ |
| Session tracking | Basic | ✅ Detailed |
| Custom signals | ❌ | ✅ |
Recommendation: Use both together for comprehensive fraud prevention.
Alerts
Set up alerts for fraud detection:
- Go to Alerts in the sidebar
- Enable Fraud order alerts
- Set the threshold (e.g., "Alert on High and Critical")
- Add email addresses for notifications
You'll receive immediate alerts when high-risk orders come in.
FAQ
Q: Can Store Shield automatically cancel orders? A: Currently, we flag orders for your review. Automatic cancellation is coming soon for high-confidence fraud.
Q: How accurate is fraud detection? A: Most high-risk orders (score 75+) are actually fraudulent. Medium-risk orders need human review.
Q: What if I ship a fraudulent order? A: Unfortunately, fraud protection isn't perfect. But catching even 50% of fraud saves significant money over time.
Q: Do you share fraud data across stores? A: We don't share individual data, but aggregate fraud patterns help improve detection for everyone.
Q: How long is order data kept? A: Order data is retained for 90 days, after which it's automatically deleted.