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Return Fraud Risk Assessment

Plans: Premium and above Platforms: All platforms


Overview


The fraud risk assessment feature in AfterShip Returns automatically reviews return requests using return request data and return shipment tracking data. The system performs a preliminary risk check at the time of return request creation. If risk indicators are triggered, the request can be auto-flagged for manual review.


Use case: Merchants 


As a merchant, fraudulent return requests can cause serious losses to the business. Many users try different approaches to misuse our return policy, and some attempt to submit fake return shipments to claim refunds/exchanges. Consequently, merchants have to manually review return requests, check customer history and order details to flag a suspicious return request.


However, AfterShip automates this risk detection.


How it helps:


  • Automatic preliminary review of return requests
  • Fraud risk indicators for better investigation
  • Auto-flagging of suspicious requests
  • Creates friction only for risky customers
  • Maintains a smooth experience for genuine customers


Enable fraud risk assessment


  1. Log in to the AfterShip Return admin.
  2. Go to the Return policy.
  3. Click Fraud prevention and enable Risk assessment.



  1. Once enabled:


  • All return requests are automatically analyzed
  • A fraud risk report appears on the return request details page



  1. Merchants can choose to auto-flag risky returns for manual review.


Set up anti-fraud workflows


  • Enable the risk assessment feature first.
  • Anti-fraud workflows work as part of the fraud analysis risk indicators


Anti-fraud workflows help automate actions based on detected risks. Learn how to set up an anti-fraud workflow.


Fraud risk indicators


a. AfterShip Returns connects data from multiple sources to help merchants conduct a preliminary check of a return request submitted by customers.


b. Each return request is evaluated using fraud risk indicators, which help merchants investigate whether a return may be suspicious. These indicators may include:


  • Any anti-fraud workflows have been triggered
  • Whether the original order was marked as high or medium risk in Shopify
  • The return request was submitted from a suspicious IP address
  • Customer’s email address or shipping address matches a previously reported fraud case
  • The destination address differs from the return location used for the return shipping label generation (Applicable to U.S. addresses only and requires Return Tracking to be enabled.)


c. A full breakdown is available in the Fraud Analysis Card on the return details page.



d. A yellow indicator appears when a return request matches one or more fraud risk criteria. In this case, the return is marked as Potential Risk. A risk alert banner is also displayed on the return request details page to immediately draw the merchant’s attention.



e. When a return is marked as Potential Risk, merchants should review the request carefully. After reviewing, merchants can provide feedback by confirming whether the return is safe or fraudulent.


This feedback helps AfterShip Returns continuously improve its fraud detection model for future return requests.


  • If marked as Safe, the return is recorded as a legitimate return request.



  • If reported as Fraud, the return is officially marked as fraudulent, and the selected fraud reason is recorded in the system.



Key takeaways


  • AfterShip automatically performs a preliminary fraud risk check on every return request using return data and shipment tracking signals.
  • Auto-flag risky return requests for manual review to prevent fraudulent refunds or exchanges.
  • Set up anti-fraud workflows to automate actions based on detected risks; however, genuine customers experience smooth returns.
  • Returns that trigger one or more fraud risk indicators are marked as Potential Risk and highlighted with a visible alert for quick action.
  • Merchant feedback on whether a return is safe or fraudulent directly helps improve the accuracy of AfterShip’s fraud detection model over time.


FAQs


Q. Does Fraud Risk Assessment block return requests automatically?


No. The system analyzes and flags suspicious returns, but merchants stay in full control and decide how to process each return.


Q. What type of data is used to detect fraud risk?


The system uses multiple signals, including:


  • Order risk level from Shopify
  • IP address behavior
  • Customer email and address matching
  • Return shipment rerouting activity
  • Anti-fraud workflow triggers


Q. Where can I see the full fraud analysis for a return?


You can view the complete fraud risk breakdown in the Fraud Analysis card on the Return Request Details page.

Updated on: 15/12/2025