Magento Commerce is the leading provider of open omnichannel innovation. Its an open source, cloud-based digital commerce platform and omnichannel solutions empowers merchants to integrate digital and physical shopping experiences. Built for rapid innovation, the platform combines rich, out-of-the-box functionality with powerful business tools. This customizable platform seamlessly integrates with third-party solutions, can be deployed in any environment, and is backed by a vast network of commerce experts ready to help you.
Magento has some features that you get out of the box that you can use to reduce fraud and chargeback significantly:
When you login into your Magento admin area and go to the order details page (Magento Admin > Orders) you will see the customer’s email address. Does it end with a generic domain like gmail.com? If not, its a good sign. Browse the domain to see if the information on the site matches the information in the order (like billing address, phone number etc). If not, be alert. Ensure that at least a couple of the other checks listed pass.
The Magento admin order details page also, lists the IP from which the order is placed. Though IP addresses cannot be trusted completely, its still good to check the region of the IP. A service like http://geoiptool.com/ can be used to trace the IP location. Best case scenario is when the country, state, region returned by GeoIPTool matches the billing address.
The Magento admin order details page will show you the billing address (shipping address if, applicable) and phone number entered by the customer. These details are provide important signs whether the order could be a fraud. Check the postal code entered - does it match the city, state, country in the address? Does the phone number look valid (you could do a quick Google with the phone number & postal code).
These steps will help you identify and void fraud orders but, how can you block certain customers from placing orders in the first place? Schogini’s Magento verified module, “Block User”, can help you with this. In case you have marked a few email addresses or IPs as troublesome (false chargebacks, spam order etc) just enter the email address or IP address and the module will prevent those customers from placing orders! You can always unblock them anytime! The module is available for both Magento 1.x and Magento 2.x