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Ecommerce

Fraud Flag Monitor

Suspicious orders get flagged to Slack before you ship — velocity, proxies, billing mismatches.

Saves about ~2 hrs per week

What it does

  • Scores new orders against fraud signals
  • Flags risky patterns: velocity, mismatch, proxy, unusual items
  • Posts flagged orders to a #fraud-review channel
  • Lets you ship or hold from the alert

How it works

  1. New order placed
  2. AI + rules score risk signals
  3. High-risk orders posted to Slack
  4. You decide ship vs hold

What's included

  • Order trigger
  • Risk scoring rules
  • Slack review queue

Set it up yourself

Follow these 4 steps in order. You will need accounts for: Shopify, Slack.

Step 1: Connect the order trigger

  1. Shopify webhook for 'order created' with read_orders + read_checkouts.
  2. Capture: billing/shipping address, email, IP if available, cart contents, payment method.
  3. Note the order's payment gateway response (avs_result_code, cvc code) if exposed.
  4. Test a real order comes through.

Watch out: The AVS/CVC response fields are the strongest signal — capture them even if your gateway doesn't expose them in the app; use the API where possible.

Step 2: Set the risk rules

  1. Rules: high-ticket + new customer; billing country ≠ shipping country; multiple cards on same email; same IP hitting 3+ customer accounts; overnight velocity on one product.
  2. Add an AI textual check for gifts/oddities ('ship to my son's school').
  3. Weigh: assign points per rule, threshold = high risk.
  4. Test on historical suspicious orders.
  5. Keep rules to the 5 that catch the most fraud.

Watch out: Good rules balance false positives — a rule that flags every first-time customer floods the channel in 24h.

Step 3: Post to Slack

  1. Create a #fraud-review channel and webhook.
  2. For each flagged order, post: order #, amount, risk score, matched rules, billing vs shipping, link to admin.
  3. Include the customer email and a 'hold' quick-action if your workflow supports buttons.
  4. Add a 'review by' deadline line (e.g. within 2h).
  5. Test the posting format.

Watch out: Include the admin link — a fraud alert you can't click through to act on gets ignored at 11pm.

Step 4: Tune the thresholds

  1. Track the outcomes of flagged vs unflagged orders.
  2. Weekly: false positive rate (flagged but shipped fine).
  3. Raise/lower the threshold to keep the queue at a reviewable size.
  4. Log final ship/hold decisions for the tuning loop.
  5. Review monthly.

Watch out: The tuning loop is the whole system — a fraud monitor that flags everything or nothing is cargo-culting. Let outcomes set thresholds.

Frequently asked questions

What does the Fraud Flag Monitor automation do?

Suspicious orders get flagged to Slack before you ship — velocity, proxies, billing mismatches. Scores new orders against fraud signals

How much time does Fraud Flag Monitor save?

It is estimated to save ~2 hrs per week. Actual savings depend on your volume.

Which tools does Fraud Flag Monitor use?

It works with Shopify and Slack.

What does Fraud Flag Monitor include?

Order trigger, Risk scoring rules, Slack review queue.

Can I set up Fraud Flag Monitor myself?

Yes. The do-it-yourself guide on this page walks through 4 steps, from getting access to testing the finished automation.