New Fraud Risk Indicator Now Available for Shopify Orders

In 2017, there was a 30% increase in e-commerce fraud attacks over 2016 according to Experian data. Between the ever-increasing data breaches and the massive amounts of consumer data now on the Dark Web, fraudulent orders is a disturbing trend that only seems to be headed upward.

Now, ShipWorks makes it easier to protect your business against e-commerce fraud attacks with the Shopify Order Risks API. This new fraud risk indicator is available for sellers who have Shopify or Advanced Shopify plan connected to ShipWorks. It means new protection against chargebacks and losses of shipping and inventory due to stolen credit cards.

If you’ve ever received a suspicious looking order but didn’t know whether to cancel or not, this is the solution you’ve been waiting for. It’s a quick, easy way to review and identify possible e-commerce fraud before it happens.

Here’s How the Shopify Fraud Indicator Works

The great thing about the Shopify fraud indicator is that it works seamlessly in the background. Just import your Shopify orders into ShipWorks  the way you normally would, and it’s already analyzing and looking for possible fraudulent orders. For example, let’s say you get an international overnight order for a high-value item for “Meryl Streep” that looks suspicious. You just place the order as usual, and the Shopify Order Risks software looks for fraudulent characteristics. There’s nothing else for you to do. If the order matches a certain number of data points that make it suspicious, the software will return a recommendation warning you against fulfilling the order.

There are a number fraud risk factors the software calculates. Like, if the customer used the correct CVV code or not. If the credit card passes or fails AVS checks. The IP address where the order was placed will be taken into account. The software also looks at whether or not the customer has used more than one credit card to place the order.

Fraud Risk Alerts

Depending on how the order matches these indicators, you’ll get a recommendation to “accept” the order, “investigate” it, or “cancel” the order. You’ll see the final recommendation to accept, investigate or cancel on the Payment Details page. Click on View, then Show Panels to reach Payment Details. (You can view more about these instructions here.)

The system’s fraud detection uses algorithms and years of historical data in Shopify. Rest assured, Shopify is committed to constantly improving their algorithms to get even better at catching fraud.

Set Up Shopify Order Risk in ShipWorks

Pretty great, right? If you have the Shopify or Advanced Shopify plan connected to ShipWorks, you’ll get Shopify Order Risk detection automatically. Just make sure you’ve updated to version ShipWorks 5.22 or later. (You can easily check your version by clicking on the “Help” tab, then click the “About ShipWorks” button.)

Only the basic Shopify plan doesn’t support the Shopify Order Risk API.

Better Protection Against E-Commerce Fraud

There are plenty of common signs of fraud like high ticket items, overnight international shipping, and famous names that might alert you to illegal activity. But there are subtle signs you might miss. Now, the Shopify Order Risks API has your back. Use it to quickly review and identify fraud, so you can place more orders and experience fewer losses.