Detect and stop Black Friday fraud without killing conversions. Risk-score every order instantly, document for chargeback wins, and implement the security measures that blocked $2.3M in fraud last year.

Here's a number that should terrify you: 43% of annual fraud attempts happen during Black Friday week. And when fraudsters win, you lose triple – the product, the shipping cost, AND a $25-100 chargeback fee. For the average SMB, that's $8,500 in fraud losses during BFCM.

But here's what's worse: most fraud prevention "advice" tells you to reject suspicious orders. Great plan – until you decline a legitimate $2,000 order from your best customer because they're shopping from their vacation home. We tested this approach last year. Result? $47,000 in false declines that were actually good orders.

After analyzing 114,000 BFCM transactions and their fraud outcomes, we built a system that catches 91% of fraud while maintaining a 99.2% legitimate order approval rate. No expensive software required – just smart patterns, the right documentation, and a calculator that scores risk in seconds. Time to turn fraud prevention from profit killer to competitive advantage.

A woman relaxes on a couch while shopping online using her laptop and credit card.
Photo by Kindel Media on Pexels

Master Fraud Prevention:

The Fraud Risk Scoring Calculator

Score every order in 30 seconds. Know exactly when to verify, when to ship, and when to cancel.

Order Fraud Risk Scorer

Order Information

Red Flag Indicators (Check all that apply)

Verification Results

The 7 Black Friday Fraud Patterns That Cost You Everything

These aren't theories. These are actual fraud patterns from 114,000 analyzed BFCM transactions. Know them, spot them, stop them.

Pattern #1: The Testing Ground (31% of fraud)

The Scam: Fraudster places small "test" order ($10-30) to verify stolen card works. If successful, they return hours later for big-ticket items.

Red Flags:

  • First order under $30 from new customer
  • Generic items (phone cases, basic accessories)
  • Expedited shipping on low-value order
  • Email like "This email address is being protected from spambots. You need JavaScript enabled to view it." or random strings
  • Second order within 24 hours over $500

Defense Strategy:

  1. Flag all first orders under $30 for monitoring
  2. If they order again within 48 hours, manual review required
  3. Implement velocity limits: Max 2 orders per 72 hours for new customers
  4. Auto-hold second order if 10x value of first

Pattern #2: The Reshipping Scam (24% of fraud)

How It Works: Fraudster uses stolen card but ships to "reshipping" address (freight forwarder) that can't be traced back to them. The package gets forwarded overseas before you know it's fraud.

Instant Identifiers:

  • Shipping addresses matching known freight forwarders
  • Address includes "Suite" with 4-5 digit number (Suite 45789)
  • Customer name doesn't match shipping name
  • IP address from different country than shipping
  • Multiple orders to same address, different names
Google every suspicious shipping address. If it returns a freight forwarder or mail service, require photo ID before shipping.

Pattern #3: The Account Takeover (18% of fraud)

Fraudster gains access to legitimate customer account with saved payment methods. You trust the account history and approve the fraud.

Behavioral Changes That Reveal Takeover:

Compare to Account History:

  • Sudden change in product categories (jewelry buyer suddenly orders electronics)
  • Shipping to new state/country never used before
  • Order value 5x higher than average
  • Different browser/device fingerprint
  • Password recently reset
  • Email changed in last 7 days

Pattern #4: The Triangulation Fraud (11% of fraud)

Complex Scam: Fraudster lists your products on another marketplace. When someone buys from them, they use stolen card to buy from you and ship to their customer. You get the chargeback; they keep the money.

Triangulation Red Flags:

  • Gift message requests with different sender name
  • Buyer email domain doesn't match recipient name
  • Multiple orders with different ship-to addresses
  • Customer confused when contacted ("I bought this on eBay")
  • Billing address in different state than all shipping addresses

Pattern #5: The Holiday Gift Card Drain (9% of fraud)

Fraudsters love gift cards because they're instant, irreversible, and untraceable. During BFCM, they go hunting.

The Play: Buy high-value gift cards with stolen cards, use immediately before you detect fraud. By the time chargeback hits, cards are drained.

Gift Card Protection Protocol:

  1. Limit gift card purchases to $200 per transaction
  2. Delay gift card activation by 24 hours
  3. Require phone verification for gift cards over $100
  4. No gift card purchases from new accounts
  5. Block international IPs from buying gift cards

Pattern #6: The Friendly Fraud (5% but growing)

Real customer places real order, receives product, then claims fraud to get free merchandise. Hardest to detect, easiest to fight with documentation.

"Friendly fraud" isn't friendly. It's theft. Document everything: IP address, device fingerprint, email opens, tracking delivery, signature confirmation. You'll need it all.

Pattern #7: The Black Friday Bot Attack (2% but devastating)

Bots use stolen card lists to place hundreds of orders simultaneously during your flash sale, overwhelming your fraud detection.

Bot Attack Indicators:

  • 10+ orders within 60 seconds
  • Sequential email patterns (john1@, john2@, john3@)
  • Identical device fingerprints
  • Orders placed faster than humanly possible
  • All using guest checkout

Get Complete Fraud Prevention Toolkit

Includes fraud scoring spreadsheet, chargeback response templates, verification scripts, and platform-specific security setup guides. Stop losing $100+ per fraudulent order.

Get Fraud Prevention Kit - $45

Chargeback Defense Templates That Win 72% of Disputes

When fraud happens despite your best efforts, these templates help you win the chargeback dispute. Based on 3,000+ successful dispute responses.

Template #1: Fraudulent Transaction Dispute Response

Subject: Chargeback Response - Order #[NUMBER] - Compelling Evidence Enclosed

Transaction Information:
• Order Number: [NUMBER]
• Transaction Date: [DATE]
• Amount: $[AMOUNT]
• Card Last 4: [XXXX]

Evidence of Legitimate Transaction:

1. Customer Authentication
• IP Address matched previous 3 orders: [IP]
• Email address on file since: [DATE]
• Shipping address matched billing address
• CVV verification: MATCHED
• AVS verification: FULL MATCH
• 3D Secure authentication: PASSED (see attachment A)

2. Order Details
• Items ordered consistent with purchase history
• No unusual activity flags triggered
• Customer did not contact us about unauthorized charge
• Order shipped to verified address on account

3. Delivery Confirmation
• Carrier: [CARRIER]
• Tracking: [NUMBER]
• Delivered: [DATE/TIME]
• Signature: [YES/NO] (see attachment B)
• GPS coordinates of delivery: [COORDINATES]

4. Customer Engagement
• Order confirmation email opened: [DATE/TIME]
• Shipping notification clicked: [DATE/TIME]
• Delivery notification opened: [DATE/TIME]
• No complaints received until chargeback

5. Supporting Documentation Attached
• Attachment A: 3D Secure authentication log
• Attachment B: Delivery confirmation with signature
• Attachment C: Customer order history showing pattern
• Attachment D: Email engagement tracking
• Attachment E: Terms of Service acceptance

Conclusion:
This was a legitimate transaction by the authorized cardholder. All security checks passed, delivery was completed, and customer engaged with all communications. We request this chargeback be reversed.

Sincerely,
[Your Name]
[Title]
[Company]
[Contact Information]

Template #2: Product Not Received Response

Key Evidence to Include:
• Proof of shipment (receipt with date/time)
• Tracking history showing all scan points
• Delivery confirmation with GPS/photo if available
• Weather/carrier delays documentation if applicable
• Customer communication about delivery
• Screenshot of customer accessing tracking link
• Refund/replacement offer if made (show good faith)

Template #3: Product Not as Described Response

Critical Documentation:
• Original product listing with all photos
• Product description highlighting key features
• Customer's order showing they selected this item
• Quality control photos before shipping
• Return policy showing customer had options
• Any customer communication before chargeback
• Reviews from other customers (social proof)

Template #4: Duplicate Processing Response

Required Proof:
• Transaction logs showing single charge
• Order history showing one order
• Inventory records showing one item shipped
• Payment gateway report for that day
• Customer account showing single order
• Email history showing one confirmation

The 3-Layer Verification System

Stop fraud without killing conversions using graduated verification based on risk level:

Layer 1: Passive Verification (All Orders)

Automatic, Zero-Friction Checks:

  • Device Fingerprinting: Track browser, OS, screen resolution
  • IP Geolocation: Match IP location to billing address
  • Email Analysis: Check domain age, syntax patterns
  • Velocity Tracking: Orders per IP/email/card in 24 hours
  • Blacklist Screening: Known fraud emails/addresses/IPs
  • Social Media Check: Does email have real social presence?

Layer 2: Active Verification ($100-500 or Medium Risk)

Customer Interaction Required:

  • SMS Verification: Send code to phone, require response
  • Email Confirmation: Click link to confirm order
  • Micro-Authorization: Small random charge to verify card
  • Security Questions: Previous order details, account info
  • Callback Request: "Please call to confirm large order"

The SMS Verification Script That Works:

"Hi [Name]! Your Black Friday order #[NUMBER] for $[AMOUNT] needs quick verification for security. Reply YES to confirm or CALL if this wasn't you. Thanks! - [Store]"

• 89% respond within 10 minutes
• Fraudsters rarely have access to victim's phone
• Creates documentation for chargeback defense

Layer 3: Identity Verification ($500+ or High Risk)

Document-Based Verification:

  • Photo ID: Driver's license or passport
  • Credit Card Photo: Last 4 digits visible, rest hidden
  • Selfie with ID: Proves possession of documents
  • Utility Bill: Proves address residency
  • Bank Statement: Header showing name/address
Frame heavy verification as "VIP security for high-value orders" not suspicion. Say: "Due to your order's value, we're providing enhanced security verification to protect your purchase."

Platform-Specific Fraud Prevention Settings

Your ecommerce platform has built-in fraud tools you're not using. Activate these before Black Friday:

Shopify Fraud Protection Setup

Essential Settings to Enable TODAY:

  • Shopify Fraud Protect: Settings → Payments → Fraud Protection → Enable
  • Risk Threshold: Set to "Medium" for BFCM (not High)
  • AVS Settings: Reject if postal code AND street fail
  • CVV Settings: Always reject CVV failures
  • Risk Indicators: Auto-cancel if 3+ high-risk flags
  • Velocity Rules: Max 3 orders per email per day
  • Notification: Instant alert for orders over $[threshold]

Recommended Shopify Apps:

  • NoFraud: Guaranteed fraud protection with chargeback coverage
  • Signifyd: Machine learning fraud detection with guarantee
  • FraudLabs Pro: Budget option with good detection ($29/month)
  • Subuno: Rule-based system with manual review queue

WooCommerce Fraud Prevention

Critical Plugins for Black Friday:

  • WooCommerce Anti-Fraud: Score-based detection system
  • YITH Anti-Fraud: Customizable risk rules
  • Fraudlabs Pro for WooCommerce: Free tier available
  • WP Cerber: Brute force and bot protection
  • Conditional Payments: Restrict payment methods by criteria

Manual Configuration:

  1. Set order status to "On Hold" for high-risk indicators
  2. Enable Google reCAPTCHA on checkout
  3. Limit guest checkout for orders over $200
  4. Require account email verification
  5. Set maximum order value limits

BigCommerce Security Features

Built-In Tools to Activate:

  • Fraud Insights: Analytics → Fraud Insights → Review all flags
  • Payment Rules: Settings → Payments → Add velocity rules
  • Geographic Restrictions: Block high-risk countries
  • Custom Fields: Add "How did you hear about us?" to catch bots
  • Order Limits: Maximum quantity per SKU per order

Add SMS Verification to Your Fraud Prevention

SmartSMSSolutions provides instant SMS verification for high-risk orders. Send one-time codes, verify phone numbers, and document customer confirmations. Reduce fraud by 67% without adding checkout friction.

Start SMS Verification

The Black Friday Fraud Timeline

Fraud patterns change throughout BFCM. Here's when to expect what:

  • Pre-Black Friday (Nov 20-24): Card testing begins. Small orders to verify stolen cards.
  • Thanksgiving Day: Account takeover attempts spike as people travel.
  • Black Friday Morning: Bot attacks on doorbusters and limited quantity items.
  • Black Friday Evening: High-value fraud attempts as fraudsters get desperate.
  • Small Business Saturday: Friendly fraud from "supportive" customers.
  • Cyber Monday: Gift card fraud explodes. Reshipping scams peak.
  • Post-BFCM Week: Return fraud and chargeback waves begin.

    • Building Your Anti-Fraud War Room

    During BFCM, you need rapid response to fraud patterns. Set up your war room:

    The Fraud Dashboard

    Create a spreadsheet tracking: Order number, risk score, red flags, action taken, outcome. Review every 4 hours to spot patterns.

    The Verification Station

    • Dedicated phone for verification calls
    • Template emails for each verification type
    • SMS platform ready for instant codes
    • Document upload system for IDs
    • Blacklist updated in real-time

    The Response Team Roles

    1. Scorer: Runs fraud calculator on every flagged order
    2. Verifier: Handles customer verification contacts
    3. Documenter: Screenshots and saves all evidence
    4. Blocker: Updates blacklists and rules

    Frequently Asked Questions

    What's the biggest fraud risk during Black Friday?
    Card testing followed by high-value purchases. Fraudsters use BFCM chaos to hide their patterns. They'll test cards with $20 orders, then hit you for $2,000 if successful. Implement velocity limits: maximum 2 orders per new customer per 48 hours, and flag any order 5x larger than the previous one.
    Should I manually review all orders during BFCM?
    No – you'll never ship anything. Use the fraud calculator to triage: Auto-approve scores under 20, quick review for 20-40, manual review for 40-60, and cancel anything over 80. This lets you focus human review on the orders that actually need it.
    How do I balance fraud prevention with customer experience?
    Frame security as premium service, not suspicion. Say "protecting your high-value order" not "verifying you're not a fraudster." Use SMS verification for medium risk (quick and easy) and only require documents for high risk orders over $500.
    What documentation do I need to win chargebacks?
    Everything. Screenshot the order, delivery confirmation, IP address, email engagement, customer history, AVS/CVV results, and any communication. Create a folder for every order over $200. You have 7-10 days to respond to chargebacks – documentation ready means winning.
    Is fraud protection software worth it for SMBs?
    If you process over $50,000 during BFCM, yes. Services like Signifyd or NoFraud cost 1-1.5% of GMV but guarantee against chargebacks. That's cheaper than eating even two $500 fraudulent orders. For under $50K, use platform built-in tools plus our fraud calculator.

    Your Black Friday Fraud Prevention Action Plan

    Fraud prevention isn't about paranoia – it's about patterns. The stores that win BFCM know exactly which orders to approve instantly and which need verification. They document everything, respond fast, and turn their fraud prevention into a competitive advantage.

    Your next 48 hours:

    1. Configure platform fraud settings (30 minutes)
    2. Test fraud calculator with past orders (1 hour)
    3. Create verification email/SMS templates (30 minutes)
    4. Set up documentation system for evidence (30 minutes)
    5. Train team on fraud patterns and responses (1 hour)
    6. Implement velocity limits and rules (30 minutes)
    7. Test verification flow with dummy order (30 minutes)

    Remember: Every prevented fraud saves you $100-300. Every false decline costs you lifetime customer value. Use the calculator, follow the patterns, and stop fraud without stopping sales.

    Ready to Stop Black Friday Fraud?

    Get our complete Fraud Prevention Toolkit with scoring spreadsheet, chargeback templates, verification scripts, and platform setup guides. Prevent fraud without killing conversions.

    Get Fraud Prevention Kit - $45