Is Shopify Fraud Analysis Accurate?

When it comes to ecommerce platforms, Shopify is one of the most popular options out there. It’s easy to use, has a lot of features, and is trusted by big names like Tesla and Coca-Cola.

But like any platform, it’s not perfect. One of the biggest criticisms of Shopify is that its fraud analysis isn’t always accurate.

Inaccurate fraud analysis can be a big problem for Shopify merchants. If you’re constantly getting false positives (or false negatives), it can lead to lost sales and frustrated customers.

So, what’s the deal with Shopify’s fraud analysis? Is it really as inaccurate as people say?

Here’s what we found:

Shopify’s fraud analysis is powered by Riskified, a third-party company that specializes in ecommerce fraud prevention.

Riskified claims to have a “false decline rate” of less than 1%. That means that for every 1,000 orders they approve, they only decline 9.

That sounds like a pretty good success rate, but it’s worth noting that Riskified is paid by Shopify to approve orders. So, there’s a financial incentive for them to approve as many orders as possible.

There have been some reports of false positives with Shopify’s fraud analysis, but it seems like the vast majority of cases are false negatives.

False negatives are much more common because they’re less likely to result in a chargeback (which would cost Shopify money). So, it’s in Shopify’s best interest to err on the side of caution and decline more orders than necessary.

Overall, it seems like Shopify’s fraud analysis is fairly accurate, but there are some cases where it fails. If you think you’ve been wrongly declined, you can reach out to Shopify support and they will usually manually review your order.