Top Rated Shopify Fraud Prevention Apps of 2024

How can Shopify merchants safeguard their businesses against the growing threat of fraud?

High-risk orders and fraudulent transactions are a significant challenge for online retailers, with global e-commerce fraud projected to surpass $48 billion in 2023 alone. 

Additionally, 60% of small businesses fail to recover from chargebacks caused by fraud, resulting in lost revenue, increased fees, and operational setbacks (Source: Riskified). 

For Shopify merchants, identifying and mitigating fraud is essential to maintaining profitability and customer trust. Our guide review the best fraud prevention apps available on Shopify to help merchants stay protected and focus on growth.

What is Shopify Fraud Prevention?

Shopify fraud prevention refers to the tools and techniques designed to protect stores on the Shopify platform from fraudulent transactions and activities. These measures aim to identify and mitigate risks associated with online fraud, such as unauthorized transactions, stolen credit card usage, and fake chargeback claims. 

By proactively addressing these risks, merchants will safeguard their revenue, reduce operational disruptions, and maintain store reputation.

Shopify itself provides built-in fraud analysis tools to assist merchants in detecting potentially risky orders. These tools include fraud analysis flags, indicators for suspicious activities (e.g., mismatched billing and shipping addresses or high-value orders from unusual locations), and basic fraud prevention strategies. 

However, these features are limited in scope and functionality, focusing more on identifying potential issues rather than actively preventing them.

One limitation of Shopify's built-in tools is the absence of automated fraud prevention and resolution workflows. 

For instance, the platform does not provide real-time fraud blocking, comprehensive fraud scoring, or advanced machine learning algorithms to predict and prevent fraudulent activities. 

Additionally, it lacks detailed reporting and customization options that are essential for businesses with complex or high-risk operations. 

These gaps leave stores vulnerable to fraud cases that escalate into disputes and Shopify chargebacks, ultimately affecting profitability and payment processor relationships.

To address these challenges, merchants install specialized fraud prevention apps that integrate seamlessly with Shopify. These apps offer enhanced capabilities, such as AI-driven fraud detection, real-time alerts, and automated workflows, enabling businesses to detect and prevent fraud more effectively. 

By using these advanced tools, Shopify merchants will minimize fraudulent transactions, reducing chargebacks, and protect their revenue.

Best Shopify Fraud Prevention Apps

To strengthen store security and minimize revenue losses, merchants can rely on third-party fraud prevention apps. These solutions offer advanced features like AI-powered risk analysis, automated workflows, and real-time monitoring, enabling businesses to proactively identify and mitigate potential threats. Below is a curated list of the top-rated Shopify fraud prevention apps that can help merchants protect their operations and maintain customer trust.

1. ChargePay

ChargePay stands out as an advanced fraud prevention solution built for Shopify merchants. It uses AI-driven analytics to identify and prevent fraudulent transactions, reducing the risk of chargebacks and disputes. 

By integrating with Shopify and major payment processors, it offers tools for proactive fraud detection, automated dispute management, and real-time monitoring. 

Its key features include predictive risk scoring and efficient workflows, helping businesses safeguard revenue and maintain strong payment processor accounts. 

With a success-based pricing model, it accommodates businesses of all sizes, offering seamless onboarding without monthly or setup fees.

Install ChargePay Shopify App today

2. Blockify

Blockify enhances Shopify store security by targeting fraud prevention at its source. The app enables merchants to block visitors based on their IP address, city, or country, effectively stopping malicious traffic. It also features a bot detection system that prevents unauthorized access from suspicious proxies and VPNs. 

Additionally, Blockify provides detailed visitor logs, enabling merchants to track and analyze potentially harmful activity. With flexible pricing starting at $3.99/month, it offers scalable solutions for growing businesses.

3. Blocky

Blocky is designed to help merchants filter unwanted traffic by blocking specific regions or IP ranges prone to fraudulent activity. This app includes tools for geolocation-based visitor redirection, allowing businesses to guide users to appropriate regional domains. 

Blocky also incorporates bot filtering and detailed visitor analytics, offering merchants insights to bolster site security. Its pricing is accessible, starting at $4.99/month, with an optional pay-as-you-go model for additional flexibility.

4. AirLock 

AirLock leverages artificial intelligence to analyze transactional behavior, identifying suspicious orders to prevent fraud. The app focuses on enhancing operational security with easy-to-navigate dashboards and comprehensive fraud analysis. 

Designed for seamless Shopify integration, AirLock simplifies fraud detection, helping merchants proactively manage risk and avoid revenue loss​.

5. Deliverlitics

Deliverlitics specializes in verifying the legitimacy of delivery addresses and preventing fraud during shipping. By offering tools for real-time tracking and address validation, it helps merchants ensure that orders are fulfilled securely and accurately. 

This approach mitigates risks associated with fraudulent shipping activities, safeguarding both revenue and customer satisfaction. Deliverlitics is built to integrate seamlessly with Shopify, making it an effective choice for operational reliability​.

Conclusion

Fraud prevention is a critical for any successful Shopify store, to safeguards revenue, reputation, and customer trust. While Shopify offers basic fraud detection, integrating third-party apps provides enhanced security through advanced tools like AI-driven analytics, risk scoring, and automated workflows. 

Solutions like ChargePay and others reviewed in this guide empower merchants to proactively combat fraud, minimize chargebacks, and streamline dispute resolution. 

Investing in the right fraud prevention tools will protects your store and ensures your business grow in increasingly competitive e-commerce landscape.