Shopify uses machine learning to analyze every online order in real time and assign a fraud risk level — low, medium, or high — which is shown to merchants before they fulfill the order.

Shopify's fraud analysis system is trained on billions of historical transactions across millions of merchants. It evaluates signals including IP address, country, customer behavioral patterns, payment details, order velocity, geolocation mismatches, and AVS/CVV verification results. The system produces a risk score and indicators visible in the Shopify admin's order page. It is an adaptive machine learning system, meaning it updates its risk assessments in real time as new data arrives. Fraud recommendations are available on the Basic plan and above for online credit card orders.