LL - Shopify Fraud Order Verification Process

This process is not for people who say their credit card is stolen - there is a separate process for that**

Fraud Order Verification Process

Goal: Identify orders flagged as fraudulent by Shopify and the fraud filter app and verify if they are legitimate, fraudulent, or potential resellers - then track, cancel/refund or fulfill. These orders will be caught and identified by Fraud Scanner by 10x Apps and archived in Shopify. --They will not be transferred to ShipStation/prepared for fulfillment until they are unarchived so this task should be done early in the shift so they can be fulfilled w/i 1 business day of the order being placed.
1. Note: High $ value orders (over $300 >12 bottles) are also identified by the fraud filter app, but only because their $ amount is over an amount that we specified to be high. The process for high $ amt is on a separate SOP. If a high-value order is also marked as med-high risk of fraud, we should use the fraud verification process instead.
The Fulfillment Coordinator will check shopify / Fraud Scanner for orders flagged as med to high risk twice daily with a goal of sending them to fulfilment within 1 business day of the order being placed.
Any orders that are med-high risk, will be HELD by the Fraud Scanner app, and archived in Shopify so they can be verified.
The order will be unarchived so it can move into ShipStation and be placed on HOLD

The Fulfillment Coordinator will complete the verification process below and will cancel the shipment and issue a refund or set to fulfill as needed.

Identify the med-high fraud risk orders - Shopify
1. From your Shopify admin panel, go to Orders.
2. In Filters select Risk Level Med and High to view only these types of orders.
3. Click the number of the order that you want to review. (Suspicious orders are flagged with an exclamation mark beside the order number). example:
4. On the order page (right side near the bottom), you'll see a section called Fraud analysis. Example:
5. Click “View full analysis” and read the details of why the order was identified as being at risk.
Verify the order - the goal is to determine if the order was placed by a legitimate customer but there is an issue with the card, or if the card may have been stolen and used fraudulently by someone else.
1. Cross-check the NAME, EMAIL, PHONE, and ADDRESS on the order in our order systems for duplicate or other orders (this allows us to catch all potentially fraudulent orders and hold them, but can also help you combine legit shipments). It also allows you to see if they have previous order history.
2. Search their name and email address in HelpScout and view previous emails and notes to see if they’ve been verified before for the same thing.
3. Check for different billing/shipping addresses. A fraudster is likely going to provide a shipping address that does not match the billing address. You can use Google Maps to map out addresses and visualize the distance between them. If the distance between two addresses is significant (different continents, for example), then the order is fraudulent. Keep in mind that legitimate shoppers sending a gift or buying on behalf of someone else might have different addresses.
4. Check for multiple orders using a different billing address for the same shipping address. This is usually a sign of fraudulent orders. Proceed carefully, and contact the customer using the information provided at checkout.
5. To do this: In ShipStation reports, download all awaiting shipments by line order in the Other Actions tab, export by line item, and look for duplicates by sorting A-Z by
  1. Name,Email,Phone,Billing City
6. Search the customer First/Last name on Google and Facebook for any matches, then review the information.

Searching for the customer name and email address on Google (or another search engine) can show if the email address was used in documented fraud attempts. You might also be able to find social media posts or other information that ties the customer to the email address or the location (state/country).
Verify the IP address -The IP address from which an order was placed is a good indicator of potential fraud. You can find the IP address that is associated with the order in the fraud analysis section of the order detail page.
1. Is the customer's IP address located in a different general area from where they claim to be?
2. Is the IP address for a web hosting company?
3. Is the IP address a proxy service IP address
4. If you've answered yes to any of the questions, then you should probably contact the customer to verify the authenticity of the order.
5. You can use the following free tools to quickly look up the geographical location, ISP, and other information about a specific IP address:
Contact the customer
1. If the customer has previously been identified as a reseller or associated with fraudulent orders, cancel and refund the order, and place a permanent note in helpscout, and on the ticket.
2. If not, the customer should be contacted both via phone and by email and asked to verify details about the order (see email/phone template below).
3. Notify the customer that the order will be placed on HOLD for 5 business days and if we have not received verification in that time the order will be canceled/refunded back to the original payment source on the 6th day.
  1. Leave a voicemail with contact information if there is no answer when you call.
  2. Notate the ticket with full details of why you called and any actions that you did or need to be done.
    1. Use Note Format: DML {%conversation.number%} SE
    2. Fraud Risk Order Verification for Order # DML- xxxxxxx
    3. What actions did you take?
    4. Any other actions that need to be taken?
    5. Example: DML 749412 GB
    6. Fraud Risk Order (Order # DML-35203)
    7. Called the customer to verify the order/no answer, left a vm. Order placed on hold pending contact with the customer.
    8. Will follow up within 5 days
4. When a customer verifies their order at a later time, the receiving agent should place a note and assign the ticket to The Fulfillment Coordinator, so she can remove the hold in SS and it can be fulfilled.
  1. If the customer does not reply/ or the order cannot be verified, The Fulfillment Coordinator will be responsible for the cancel/refund of the order.
  2. Cancel any refill orders related to the order.
  3. Email the customer a confirmation using the Order Cxld template and notate the HS ticket with your actions.
  4. Use Note Format: DML {%conversation.number%} SE
  5. Fraud Risk Order Verification for Order # DML- xxxxxxx
  6. What actions did you take?
  7. Any other actions that need to be taken?
  8. Example: DML 749412 GB
  9. Fraud Risk Order (Order # DML-35203)
  10. The customer hasn’t contacted back in 5 days
  11. Order cancelled/refunded ($full amount refunded)
Handling Known fraudsters:
Add known fraudsters to the Fraud Scanner by 10x Apps in shopify, and place a notation in Help Scout on the ticket and in the permanent note section. (see image 1 below)
Add them to the reseller list if that applies.

11. As part of the fraud process - Subscriptions in Recharge should be reviewed on a monthly basis for irregularities.

Duplicate orders
Mismatched qty vs frequency - too many bottles received too often (ie; 3 or 6 bottles received every 1 month)
Obvious price irregularities.
These customers should also be contacted for clarification about their order.
Image 1 (permanent notes in Help Scout)

Fraud Order Verif Email Template:

Hi {%customer.firstName,fallback=%},

I'm writing to let you know that an order of (PRODUCT) (ORDER ID) placed on (DATE) was flagged as being at risk of fraudulent activity.

This can happen for various reasons like when an order was placed from a location other than where it is being shipped, due to a mismatch on the credit card information, or when the CVV security code on the card used wasn't provided.

In order to protect the security of the credit card owner, we have placed the order on hold until we can verify information about the order.

Please reach out to us within 5 business days with the information below so we can verify the order and get it shipped to you.

If we do not hear back from you within 5 days, this order will be cancelled and refunded back to the original payment source. I apologize for any inconvenience this may cause.

Information need to verify your order:

What country were you in when you placed the order? USA, Sweden, UK, etc
What is your name? (First, Last)
What is the name on the card? (First, Last)
What is the billing address on the card?
What is the CVV on the back of the card?
What is the shipping address on the order?

{%customer.firstName,fallback=%}, we truly appreciate you choosing SunCoast Sciences and look forward to hearing back from you so we can process your order for shipment.

Fraud Order Verif Voice Message:

Hello, this is (NAME) calling from (BRAND) about an order placed on (DATE).

I’m calling to let you know that the order is currently on hold until we can verify some information about the order. I’ve sent an email to the email address used on the order (email address) with details. All you need to do is reply to the email within 5 days to confirm the needed information, so we can get your order shipped out to you! Thank you for choosing (BRAND), I look forward to hearing back from you soon. Good bye.

Live call Script:

Hello, may I speak with (CUSTOMER NAME) -- this is (NAME) calling from (BRAND) about an order placed on (DATE).

I’m calling to let you know that the order is currently on hold until we can verify some information about the order. Occasionally, the bank will identify an order as being at risk of fraudulent activity. This can happen for various reasons. So with that there are a few questions that I need to ask, if you're comfortable with that, so just let me know if not because I also sent you an email today that includes the same questions and you can respond to us via email instead if you prefer. The questions are related to the location where you place the order, your complete name, your billing and shipping address and the security code of the card. Are you comfortable answering those over the phone?

Information need to verify your order:

What country were you in when you placed the order? USA, Sweden, UK, etc
What is your name? (First, Last)
What is the name on the card? (First, Last)
What is the billing address on the card?
What is the CVV on the back of the card?
What is the shipping address on the order?

Awesome, I truly appreciate you taking time to talk to me today and for choosing SunCoast Sciences, I will be processing your order for shipment. Thank you, Bye Bye.

Fraud check helpful hints:

Potential Fraud customers, look for matching street addresses, or multiple orders in the same city/state within the same day. If found, those are most likely fraud and need to be emailed the fraud verif email.
Large purchases with an IP address in a different state are possibly fraud, but not always. Check SI or Shopify for prior large orders in a short time.
Bulk orders are not always fraud orders. Many customers look for “deals” and like to stock up. These customers will not always have communication with us. They have chosen to select the upsells we offer.
Fraudulent trends - Using large coupon codes on multiple orders, “off” names, repetitive street addresses or city/state, several bulk purchases within a few days time and IP address mismatch are red flags.
Orders that are possible fraud or resellers, look for store front based email addresses, multiple purchases to same city/state and customers in HS asking for “wholesale pricing”
You can also use a service such as 411.com to make sure the phone number is located in the same area code as the billing address. Fraudulent customers often use invalid phone numbers. If someone answers the phone, then ask them the verification questions below and see how they respond. Do they know the addresses, phone number, email, and name they used? Are they struggling to give you simple pieces of information?

Call Next - CH TEAM Actions:

If a Verif call is added to the call next box the CH Agent should

Call the customer 1x, and leave a voicemail if not available.

If the customer answers an verifies the order, the place a note and assign the ticket to The FC Team so the hold in SS can be removed and the order can be fulfilled.
1. Before reassigning change the subject line to Fraud Order - Verified
If the order cannot be verified, reassign the ticket to the FC Team who is responsible for the final cancel&refund of the order and any related subscriptions. Along with emailing the customer a confirmation/notating.
FYI remove the call next tag before reassigning to the FC team.