How do I prevent Black Friday fraud?

Question

As an e-commerce business owner preparing for Black Friday, I'm deeply concerned about potential discount fraud that could devastate my profit margins. Fraudsters are becoming increasingly sophisticated in exploiting promotional offers, using techniques like creating multiple accounts, sharing codes, and using automated bots to game the system. I need a comprehensive strategy to protect my business from these threats while maintaining a smooth customer experience and ensuring legitimate customers can enjoy genuine discounts.

Muhammed Tüfekyapan · Accepted Answer

How Do I Prevent Black Friday Fraud?
Fraud spikes during Black Friday because high order volume makes individual fraudulent transactions easier to miss, and because stolen card details are used when legitimate purchases provide cover. A 0.5-1% fraud rate is normal; above 1.5% indicates you need to tighten your fraud filters.

Fraud Prevention Layers
  
    LayerHow to Implement
    
      Shopify fraud analysisEnable in Settings > Payments > Fraud prevention
      CVV requirementRequire CVV for all new card transactions
      Address verificationFlag mismatches between billing and shipping
      High-value order reviewManual review for orders above 3x your average AOV
      Multiple failed paymentsFlag accounts with 3+ failed payment attempts

Growth Suite: Server-side discount code management prevents discount code abuse - codes are created per-customer, expire on use, and can't be shared or reused. This eliminates a common Black Friday fraud vector where coupon codes circulate on deal-sharing sites.

How do I prevent Black Friday fraud?

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How Do I Prevent Black Friday Fraud?

Fraud Prevention Layers

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Muhammed Tüfekyapan

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Use Cases

Layer	How to Implement
Shopify fraud analysis	Enable in Settings > Payments > Fraud prevention
CVV requirement	Require CVV for all new card transactions
Address verification	Flag mismatches between billing and shipping
High-value order review	Manual review for orders above 3x your average AOV
Multiple failed payments	Flag accounts with 3+ failed payment attempts