What is fraud analysis in Shopify?

A built-in risk-scoring system that flags suspicious orders before you fulfill them.

What do the risk levels mean?

Low, medium, and high indicate the likelihood an order is fraudulent based on signals like address mismatch and order velocity.

Does Shopify block fraudulent orders?

No — fraud analysis is a recommendation; you decide whether to fulfill.

What should I do with a high-risk order?

Verify the customer (contact them or request ID) before shipping, or cancel and refund.

Can I automate fraud handling?

You can set rules to auto-cancel the highest-risk orders, but manual review is safer for borderline cases.

Glossary Term

F

Fraud Analysis

Shopify's built-in risk scoring that flags suspicious orders before you ship them.

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Key Takeaways
Fraud Analysis scores each order's fraud risk: low, medium, or high.
It appears on every order in the Shopify admin.
It evaluates address mismatch, order velocity, IP location, and fraud patterns.
It's a recommendation, not a block — you decide whether to fulfill.
Reviewing risk before fulfillment prevents chargebacks and lost inventory.

Overview

Fraud Analysis is Shopify's built-in risk-scoring system that evaluates each order for the likelihood of fraud and flags suspicious ones before you fulfill them. It appears as a risk level (low, medium, high) on each order in the admin.

The analysis looks at signals like billing/shipping address mismatch, velocity of orders from a card or address, IP location, and known fraud patterns. On higher plans it includes Shopify Protect and more detailed signals. It's a recommendation, not a block — you decide whether to fulfill.

Fraud analysis protects you from chargebacks and lost inventory. A high-risk order you ship can become a chargeback — you lose the product and the revenue. Reviewing risk before fulfillment, especially on high-value orders, is a core part of order management.

1

Why Fraud Analysis Matters for Shopify Merchants

1
Prevent Chargebacks
Catching fraud before shipping avoids losing both product and revenue.
2
Protect Inventory
High-risk orders can mean stolen goods — don't ship what you can't recover.
3
Reduce Manual Review
The risk score tells you which orders need a closer look and which are safe.
4
Higher Confidence
Fulfill low-risk orders quickly; pause high-risk ones for verification.
5
Lower Dispute Costs
Fewer chargebacks mean lower dispute fees and processor risk.

2

Using Fraud Analysis Effectively

1
Check the risk level
Review the risk indicator on every order before fulfilling, especially high-value ones.
2
Verify high-risk orders
Contact the customer or request ID for medium- and high-risk orders before shipping.
3
Don't auto-fulfill high risk
Hold high-risk orders for manual review even if you normally auto-fulfill.
4
Use AVS and CVV
Enable address and card-code verification at checkout for an extra fraud signal.
5
Track your chargeback rate
A rising chargeback rate means you need stricter fraud review.