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WIP on demoIdentify problem emails
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?
Preventing Fraud
Methods
Install app
To block users who try to make repeat fraudulent orders
Verify the IP address
The IP address from which an order was placed is a good indicator of potential fraud. Consider whether any of the following are true:
If you've answered yes to any of the questions, then you should probably contact the customer to verify the authenticity of the order.
You can use the following free tools to quickly look up the geographical location, internet service provider (ISP), and other information about a specific IP address:
You can find the IP address that is associated with the order in the section of the order detail page.
Call the phone number on the order
Calling the customer is always a good idea. You can also use a service such as to make sure the phone number is located in the same area code as the billing address. Fraudulent customers often use invalid phone numbers. If someone answers the phone, then ask them some simple questions about their order and consider how they respond. Do they know the addresses, phone number, email, and name they used? Are they struggling to give you simple pieces of information?
Search for the email address
Searching for the email address on Google or another search engine can help you determine whether the email address was used in documented fraud attempts. You might also be able to find social media posts or other information that ties the customer to the email address.
Verify that the billing and shipping addresses match
A fraudster is likely going to provide a shipping address that does not match the billing address. You can use to map out addresses and visualize the distance between them. If the distance between two addresses is significant (different continents, for example), then the order is fraudulent. Keep in mind that legitimate shoppers sending a gift or buying on behalf of someone else might have different addresses.
Check if multiple orders use different billing addresses for the same shipping address
Are there multiple orders with different billing addresses located in different states, with different names, but sharing the same shipping destination? This is usually a sign of fraudulent orders. Proceed carefully, and contact the customers using the information provided at checkout.
Review high value orders
If you receive an order which is substantially higher than normal, then you should verify the customer's identity.
Adjust your payment capture settings
When you use Shopify Payments, you aren't charged third-party transaction fees for orders that are processed through Shopify Payments, Shop Pay, Shop Pay Installments, and Paypal Express. Learn more about determining your eligibility for Shopify Payments.
are charged for all processed payments made through a third-party payment provider, and aren't returned to you when you issue a refund. You can change your payment capture settings to prevent automatic payment capture for certain orders and reduce the potential impact of the transaction fees for fraudulent orders to your business.
Alternatives to automatically capturing payments can include:
Manually capturing payments adds an additional step in your order fulfillment workflow, but allows you greater control over capturing payment for specific orders. You can assess the potential cost of transaction fees and the time it adds to your fulfillment workflow to determine what is right for your business.
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