December 30, 2022
Did you know? Since the inception of Shopify, the gross profit dollars increased by 6% to $655.6 million in 2022’s second quarter. It was $620.9 million for the second quarter of 2021.
Quite impressive right? However, an astounding growth also makes it a hotspot for cybercriminals targeting merchants with unauthorized transactions that end up in chargeback requests. These Shopify frauds make it much more difficult for Shopify merchants to undergo their business. For this, various fraud prevention Shopify apps got introduced to tackle these for you.
However, because each app has its unique set of features and pricing practices, you may need clarification about which one to choose. To make things easier, we've compiled a list of the 8 best Shopify fraud prevention apps with the key information and best strategies.
Shopify merchants often face many types of Shopify scams and fraud such as stolen card details, account takeovers, and chargebacks.
A chargeback happens after a customer disputes the transaction with their issuing bank. The issuing bank then works with the evidence and then reassigns the chargeback expense to the merchants using the card network.
According to a recent study, global payment fraud is rising and will cost merchants $40.62 billion by 2027. And some of the reasons are:
Shopify’s fraud analysis or Shopify fraud protection helps spot fraudulent orders by reviewing high-risk orders to avoid potential chargebacks. Processing high-risk orders may result in a higher number of chargebacks, thereby disabling payment processing and removal from Shopify Payments.
Shopify fraud analysis is designed to work with online credit card orders to verify payments. The opportunity for fraud also goes from merchant to customer with fake stores on the platform.
A Fakespot analysis found more than 25,000 that engaged in some form of fraudulent activity like counterfeits, privacy leaks, or buying fake reviews.
by NoFraud, LLC
NoFraud Shopify app is one of the highest rated eCommerce fraud prevention apps that deliver individual, real-time decisions for every transaction. It uses thousands of data points and the best fraud detection technology available.
It is a fully automated app that is managed by in-house experts. It does not require any input from the merchants. All reviews are managed by NoFraud.
Key Features
Rating: 4.8/5.0
Price: Free to install
by ClearSale
ClearSale is another great end-to-end payment fraud protection system that assists merchants like you in preventing fraud and chargebacks. When a chargeback occurs, this app examines it to determine whether the order was fraudulent on Shopify.
It also provides you with the most precise identification and control over the fraud risk. It is a manual review procedure with no AI involvement. However, a seasoned analyst reviews all suspicious transactions, making it much safer.
Key Features
Rating: 4.8/5.0
Price: Free to install
by SEON Technologies Ltd.
SEON is a fraud prevention and detection app that helps merchants fortify their businesses with enterprise-level features. It comprises a robust scoring engine that identifies potential bad orders and detects fraud patterns.
You can easily scan over 50 digital and social signals in real-time to confirm the identity of the person placing the order.
Key Features
Rating: 4.9/5.0
Price: STARTER plan for $99/month, PRO plan for $299/month and an ENTERPRISE plan i.e. Free to install.
by fugu
This anti-fraud app is designed to reduce order declines while successfully preventing frauds. FUGU examines the information provided by the consumer during the checkout process.
Also, various optional chargeback guarantee services are also available in this app which acts as a great addition.
Key Features
Rating: 5.0/5.0
Price: BASIC plan for $99/month, FUGU plan for $249/month, and ADVANCED plan for $599/month. A FUGU LITE plan i.e. free is also available.
by Disputifier
It is an AI-based Shopify fraud detection app that makes the work of fighting chargebacks manually a much easier task. When a chargeback occurs, the system examines it as well as the client who initiated it.
It generates a personalized response depending on the cause of the chargeback, fraud analysis, fulfillment status, and other factors. Also, this response is submitted automatically thus making it a faster process.
Key Features
Rating: 5.0/5.0
Price: Free to install
by Eye4fraud Inc.
Being a credit card fraud protection app for online sellers, it involves no bots or tickets but personal account managers who offer responsive services. This app also prevents fraudulent orders from being completed, reducing cash backs and other costs.
You may utilize it imm
ediately in your Shopify admin with its smooth workflow. This assists in opening up entirely new markets by spreading your sales to any country on the planet.
Key Features
Rating: 4.7/5.0
Price: Free to install
by Pluginhost B.V.
This app helps you defend against fraudulent orders and prevent chargebacks by automatically detecting high-risk orders. It allows you to set your own custom rules to instantly flag unusual order quantities or amounts, and risky customers or addresses.
You may additionally identify customers by automatically or manually demanding identification verification using a government ID, passport, ID card, or driver's license.
Key Features
Rating: 5.0/5.0
Price: PREMIUM plan for $20/month. A FREE plan is also available.
by Hexasoft Development
With its free fraud screening procedure, FraudLabs Pro simply identifies numerous high-risk transactions and lowers chargebacks. It detects any high-risk orders and automatically emails the consumer if the order is canceled.
The fraud protection module operates as a fraud filter and enables an SMS verification add-on for businesses to verify the purchaser's identity.
Key Features
Rating: 3.7/5.0
Price: Free to install
There are generally three main reasons why you receive a chargeback request for your Shopify store. These are as follows:
The other reason is fraud that reflects in two categories:
Here are the top tips to avoid Shopify chargebacks:
These are the 8 best Shopify Fraud Prevention Apps that accommodate the best security features to protect your business, especially during those high sale days. We hope this guide helped find the best app suitable for your business.
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