Shopify Apps

8 Best Shopify Fraud Prevention Apps [2024]

Last updated on

April 10, 2024

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.

What is Shopify Fraud?

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: 

  • Double billing 
  • Incorrect amount 
  • Unrecognized purchase
  • The item was not received at the customer’s end 
  • Customer dissatisfaction
  • Malicious fraud like stolen goods
  • Friendly fraud 

What is Shopify Fraud Prevention? 

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.

Let's Unwrap the 8 Best Fraud Prevention Apps for Shopify

1. NoFraud Fraud Protection

by NoFraud, LLC

NoFraud Fraud Protection 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

  • Chargeback Protection: NoFraud reimburses the full chargeback amount for a fraud chargeback on an order passed by NoFraud. 
  • Flexibility on which orders to screen.
  • Customized Review Process.
  • Allows cancellation of fake Shopify orders before a third-party order fulfillment company processes orders.
  • Detailed order status reporting, review results, and fraud attempts reporting.

Rating: 4.8/5.0

Price: Free to install

Shopify app link

2. ClearSale Fraud Protection

by ClearSale

ClearSale Fraud Protection 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

  • Multiple performance-based pricing plans.
  • Improves your ROI with a customized solution.
  • Fine-tuned solutions to outperform KPI targets and achieve the best ROI.
  • Updates tools & rules, manages dedicated fraud staff and stays ahead of ever-evolving fraud attacks.
  • Removes operational burden.

Rating: 4.8/5.0

Price: Free to install

Shopify app link

3. SEON Fraud Prevention

by SEON Technologies Ltd.

SEON Fraud Prevention 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

  • Automatically approves transactions and increases the conversion rate.
  • Live email lookup for additional verification.
  • Auto-cancels and refunds transactions without any input.
  • No chargeback guarantee allows merchants to accept more transactions considered risky by others.

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. 

Shopify app link

4. FUGU: Every Payment Counts 

by fugu

FUGU: Every Payment Counts 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

  • Unique Hybrid Protection mode.
  • Fully Packed and Pre-configured plans.
  • Payment monitoring and KYC automation.
  • One-click integration with no coding knowledge needed.
  • Optional Chargeback Guarantee service.

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.

Shopify app link

5. Disputifier: Smart Chargeback 

by Disputifier

Disputifier: Smart Chargeback 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

  • AI-enabled chargeback win rates.
  • The highest chargeback win rate is guaranteed.
  • Advanced analytics for determining your win rate, dispute ratio, and other essential metrics.
  • Highly customized responses.
  • Order Not Delivered Prevention is Designed for dropshippers for late, lost, or not fulfilled orders.

Rating: 5.0/5.0

Price: Free to install

Shopify app link

6. Eye4Fraud | Fraud Protection

by Eye4fraud Inc.

Eye4Fraud | Fraud Protection 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 immediately 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

  • Instant verification with Machine Learning powered software. 
  • Dedicated Account Manager offering a same-day response.
  • Suspicious orders land on the team specialist who performs a manual review.
  • Nearly 100% of orders are approved instantly while the rest are manually verified.
  • Simple setup.

Rating: 4.7/5.0

Price: Free to install

Shopify app link

7. FraudJudge Fraud Prevention

by Pluginhost B.V.

FraudJudge Fraud Prevention 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

  • Increases store security and improve risk management.
  • Provides customer identification automatically or by manually requesting identity verification.
  • Stops fraudulent orders before they are even placed.
  • Advantage of buyer identification toolset.
  • Checks the customer’s age before shipping, to avoid gift card abuse or gift card fraud.

Rating: 5.0/5.0

Price: PREMIUM plan for $20/month. A FREE plan is also available.

Shopify app link

8. FraudLabs Pro SMS Verification

by Hexasoft Development

FraudLabs Pro SMS Verification 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

  • It has more than 50 different metrics based on IP geolocation, proxy, email validity, credit card data, transaction velocity, and more.
  • Manual review available. 
  • Automated high-risk order cancellations and notifications to users.
  • SMS verification.

Rating: 3.7/5.0

Price: Free to install

Shopify app link

What Causes Shopify Chargebacks? 

There are generally three main reasons why you receive a chargeback request for your Shopify store. These are as follows:

  1. Merchant error: You accidentally shipped the wrong item, forgot to apply a discount, or listed an incorrect description of a product.  
  2. Unhappy customers: Sometimes, an unhappy customer goes straight to the chargeback request process.
  3. Unauthorized payments: Also known as family fraud, it usually happens when family members purchase on Shopify without authorization. 

The other reason is fraud that reflects in two categories:

  • Obvious fraud: The credit card number was stolen by fraudsters and the legitimate cardholder is requesting their funds back.  
  • Friendly fraud: It is a chargeback abuse that happens when a legitimate cardholder makes an illegitimate chargeback request.  

Tips to Prevent Shopify Chargebacks

Here are the top tips to avoid Shopify chargebacks: 

  • Set up order-tracking workflows: Enabling customers to track their orders in real-time saves a lot of hassle. 
  • Be prompt about shipping: Research shows that 45% of chargeback requests stem from delivery delays. 
  • Fine-tune your customer service: Ensure precise communication throughout the journey to ease out problems while avoiding a chargeback. 
  • Revise store policies: Ensure the terms and conditions are available in a clear and concise form to avoid miscommunication.
  • Write real product descriptions: Make sure that you include only the right description of a product to avoid miscommunication among customers. 
  • Investigate suspicious orders before processing.  
  • Make sure your contact information is instantly accessible.
  • Process refunds as soon as possible.
  • Refine your packaging for shipping products, and quickly replace defective or damaged products.
  • Include a subscription cancellation policy on your store.
  • In case of a double charge, refund the second one right away.  
  • Make sure to set the billing statement that will appear on your customer's credit card bill.

Wrapping Up 

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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Written by
Abishek Baskaran
Co-founder
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