Shopify's Fraud Filter allows you to filter and block orders based on a set of rules defined within the app. It's great for:
- Increasing control over your checkout
- Reducing the number of chargebacks you receive
- Providing detailed analysis of orders that it cancels at your request
Avoiding fradulent orders with Fraud Filter
Fraud Filter is a straight forward tool that you can use in your shop to prevent potentially fraudulent orders from processing in your store. It can either warn the shop owner of potentially fraudulent transaction, or cancel an order entirely, depending on what your rule is set to do.
Fraud Filter is a versatile app that has a few functionalities to better protect your checkout:
- Add extra protection above and beyond what native Risk Analysis provides.
- Allow you to review potentially risky orders before capturing funds and fulfillment.
- Restrict checkout to only certain customers.
- Prevent certain known customers from ordering.
- Prevent customers from a particular referring site from ordering.
- Prevent certain brands of credit cards from checking out.
- Warn you of potentially fraudulent orders or cancel orders outright.
If a rule is set to warn you of an order, Fraud Filter will notify you on the orders page if you have an order that matches one of your Fraud Filter rules. Even if the other Risk Analysis qualifiers are not reporting potential fraud, you will see a warning in the order's risk analysis section that Fraud Filter detected potentially fraudulent activity, with a clear indication that the app's rule was triggered by the order.
Any order canceled by Fraud Filter will be documented within the app with a link to its abandoned checkout within the app's orders section.
Setting up Fraud Filter rules
Exercise extreme caution when setting up a rule for cancellation. If your rule is not specific enough, potential legitimate customers may not be able to check out, resulting in lost sales.
In this case, we're going to create a rule to block all orders associated with any email address from a particular domain. To do this, click the Add a new filter button in the upper right hand corner of the app, which brings us to the New Rule screen.
On this screen you can configure your rule as you see fit. As an example, we're going to create a rule that cancels all orders coming from evil.com, as firstname.lastname@example.org is our default value.
In the above example, we've named the rule "Cancel Evil.com Orders", set it to cancel, and configured our rule.
Every rule has several logic operators for it. This will allow you to configure as you see fit. In the above example, we're using contains as our operator because we want to block all email address containing @evil.com in it.
We have opted to re-stock any products orders, and refund any money collected from our evil.com customer. This is a good choice here, as there is a chance that if your store is configured to automatically capture funds the app will check the order after capturing funds.
Seeing Fraud Filter in action
Now that your rule is set, anyone checking out with an evil.com email address will not be able to check out.
If you have a rule configured to warn you in the admin, the order will process as it normally would on the customer end, but will be flagged in the orders section of the admin, similar to if it had been flagged by your payment gateway.
From the customer's perspective, the order will have processed normally.
In the admin section, though, you will see the order flagged, as well as an indication in the order's risk analysis that Fraud Filter flagged the order as potentially fraudulent.
If you have a rule configured to cancel an order, the customer checking out will see that their card was declined.
As mentioned above, a canceled order will be recorded within the app's orders menu, where it can be edited if necessary.
Fraud Filter FAQ
- Can Fraud Filter prevent fraud entirely?
- Does a customer know that their order is matching a rule set in Fraud Filter?
Can Fraud Filter prevent fraud entirely?
No. Fraud Filter cannot guarantee that you will never receive a fraudulent order. It can not predict whether an order is fraudulent or not without it matching a particular rule you create in the app. If possible, you should always fully review an order's Risk Analysis prior to fulfillment.
Does a customer know that their order is matching a rule set in Fraud Filter?
No. Fraud Filter will not notify customers whether their order appears to be fraudulent or not, giving you an advantage when reviewing orders that provide a warning or cancellation action based on a rule set in Fraud Filter. The only thing a customer will see is that their card was declined, which may lead to them reaching out to you. Be sure to check Fraud Filter's order section in this case.