#general-chat
Thread
Hi - anyone experiencing significant increases in Shopify fraudulent alerts from customers who are transacting? We’ve noticed a significant increase he past year, we’ve seen a 3000% increase in transactions flagged as “fraudulent” by the platform. My team has been canceling each flagged order based on Shopify’s assessments, yet we’re concerned about the impact this has on our customers and on the algorithm’s learning process.
We recently started doing some due diligence on these flagged accounts and found that many of these orders appear to come from “real” people with social profiles who seem like typical customers. Our primary audience is parents with young children who genuinely need our products, so it’s important we don’t send the wrong message or turn away legitimate customers.
Any insights or suggestions on how to better qualify these transactions would be greatly appreciated. Thank you!
I noticed an uptick of "medium" fraud risks this year and did nothing. None of them ended up being fraudulent. The high-risk ones, though, do tend to be fraud in my experience.
Thanks so much for response. You allowed all the orders to process?
Yes, the "medium" ones.
check the channel too as there was a convo about this... and I believe a Shopify rep said not to do what I did lol
@Valerie Crisp I did not see an Archive channel and searched. If you happen to have a link to point me to, I'd be very appreciative of the insights.
click the link
found it! 🙂 Thanks again.
hey @Christy Brown - do you have flows setup to automate cancelations or ping a team member when a medium one comes in?
@Lenny Huynh we do not.
you should get that setup to automatically cancel high risk at least, its free as well
99% of the time, we usually just cancel all high risk
source: dozens of brands ive worked with during my tenure at Sharma Brands 🙂
@Sakshi Jain works with a brand called BetterBoday. I guess they put up a very robust fraud detection process
I would say go for a tool if the frequency is high. Otherwise instead of automatically canceling, manually review flagged orders by checking for things like IP address vs. shipping address, or contacting the customer directly for verification. If you’re doing customer acquisition through specific channels (e.g., social ads), track whether flagged orders come from trusted sources and whitelist them over time. Lastly, I agree with @Valerie Crisp and lowering Shopify’s fraud settings. Let me know if I can help anyhow.
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@Steve Elassy
Are you seeing an uptick in chargebacks? I’d be concerned that you’re potentially throwing away legitimate sales with potential false positives.
You could try checking out third party tools like Forter or Signyfied which often offer acceptance rate and chargeback percentage guarantees.
<95% of legit sales wont be false positives, id rather risk that 1% of false positives than get hit with chargebacks you cant win and then have shopify close as your payment processor @Brandon Maskell
@Brandon Maskell no chargebacks, we’ve been cancelling a high volume of sales. But, this needs to change since we’re loosing sales. Thanks for the suggestion, agree, @Lenny Huynh that we are reviewing every sale now, validating emails and contacting customers. If this volume continues to grow, I’m concerned the bandwidth on the team will be too much.