Fraudulent orders can seriously damage your Shopify business through chargebacks, lost inventory, and processing fees.
Here are 6 verified methods using Shopify’s documented features to help stop fraudulent orders.
1. Enable Shopify’s fraud analysis
Shopify automatically analyzes every order for fraud risk using machine learning.
How to set it up:
- Go to Orders in your Shopify admin
- Click on any order to see fraud analysis
- Look for green (safe), red (risky), or grey (neutral) indicators
- Always wait for analysis to complete before fulfilling orders
2. Turn on Address Verification System (AVS)
AVS compares the customer’s billing address with their credit card company’s records.
How to set it up:
- Go to Settings → Payments
- Click “Manage” under Shopify Payments
- In Fraud Prevention section, enable “Decline charges that fail AVS postal code verification”
3. Enable CVV verification
CVV verification requires customers to enter the 3-digit security code from their credit card.
How to set it up:
- Go to Settings → Payments
- Click “Manage” under Shopify Payments
- In Fraud Prevention section, enable “Decline charges that fail CVV verification”
4. Set up payment authorization (not capture)
Hold payments for review instead of charging immediately.
How to set it up:
- Go to Settings → Payments
- Under Shopify Payments, click “Manage”
- Turn off “Automatically when the entire order is fulfilled”
- Manually capture payments after reviewing orders
5. Set up manual review for orders
Review orders before fulfilling them based on Shopify’s fraud analysis.
How to set it up:
- Go to Settings → Notifications
- Enable “Order fraud analysis” notifications
- When you receive medium or high-risk order notifications, review them manually before fulfilling
- Check for mismatched addresses, unusual customer behavior, or suspicious contact details
6. Explore fraud prevention apps
Shopify’s App Store has fraud prevention apps that may offer additional features.
Available options:
Note: App features vary and you should review each app’s current functionality and pricing before installing.
Conclusion
Start with Shopify’s built-in fraud analysis and payment verification features (methods 1-5). These are documented Shopify features that don’t require additional apps.
If you need more advanced features like country blocking or automated order cancellation, explore the fraud prevention apps available in Shopify’s App Store, but verify their current features before purchasing.
