What it does
Automatically flags Shopify orders with high fraud risk scores and holds them for manual review before fulfilment, preventing chargebacks and protecting your business from fraudulent purchases.
Why I recommend it
Shipping to fraudsters costs you the product, shipping fees, AND the chargeback fee. One $500 fraud order can wipe out the profit from 50 legitimate sales. Automated fraud detection catches suspicious orders before you lose money.
Expected benefits
- Reduced chargebacks and fraud losses
- Protected profit margins
- Less time manually reviewing every order
- Peace of mind on high-value orders
How it works
New Shopify order created -> check fraud analysis score -> if score above threshold (e.g., “high” risk) -> hold order from fulfilment -> send alert to fraud review team -> require manual approval before shipping.
Quick start
Start by setting Shopify orders with “high” fraud risk to not auto-fulfil. Review these manually daily. Once you trust the system, add automatic alerts and create a review queue.
Level-up version
Combine Shopify’s fraud score with additional signals (new customer + high value + expedited shipping + mismatched billing/shipping address) to create a custom risk score. Auto-refund and cancel obvious fraud, only flag borderline cases for review.
Tools you can use
E-commerce: Shopify
Fraud detection: Shopify Fraud Analysis, Signifyd, Riskified
Alerts: Email, Slack, SMS
Order management: Shopify admin, ShipStation
Also works with
E-commerce platforms: WooCommerce, BigCommerce, Magento
Fraud tools: Forter, Kount, Sift for advanced fraud detection
Technical implementation solution
- No-code: Shopify order webhook -> Zapier checks fraud_risk_level field -> if “high”, send Slack alert + add “REVIEW” tag to order + hold from auto-fulfilment app.
- API-based: Shopify webhook on order creation -> parse risk_level -> if high, update order with hold status via API -> create review task in system -> alert team.
Where it gets tricky
Balancing false positives (legit customers flagged as fraud) with false negatives (fraudsters slipping through), handling international orders with different risk profiles, and creating a smooth review workflow that doesn’t delay legitimate orders.
