iDenfy, a global identity verification and fraud prevention company, has launched a new Shopify app that automatically triggers identity checks on orders flagged as suspicious, as merchants grapple with rising levels of e-commerce fraud.
The app integrates directly with Shopify’s built-in fraud analysis system and initiates identity verification when transactions are marked as medium or high risk. The aim is to reduce chargebacks and fraud-related losses without disrupting legitimate customer purchases, according to the company.
Online payment fraud remains one of the fastest-growing threats facing digital commerce. Global e-commerce sales have expanded rapidly over the past decade to more than $4tn, while estimated losses from online payment fraud reached $44bn worldwide in 2024. Chargeback fraud, synthetic identities, stolen card data, and account takeovers are among the most common methods used by criminals to place orders that appear legitimate.
Shopify’s fraud evaluation system assesses transactions using a range of indicators, including address mismatches, incorrect CVV codes, repeated card attempts, and unusual purchasing behaviour. Orders are categorised as low, medium, or high risk, but the platform leaves final decisions to merchants, who often resort to manual reviews or delayed fulfilment.
iDenfy’s new no-code app is designed to automate that decision-making process. When an order is flagged, customers are redirected to a short identity verification flow, which the company says takes less than one minute on average to complete.
“Shopify already does an excellent job identifying risk, but identity verification is the missing layer,” said Domantas Ciulde, CEO of iDenfy. “With our new Shopify plugin, we help merchants turn fraud signals into real protection, reducing chargebacks while preserving a smooth buying experience.”
The app allows merchants to customise when verification is required, using criteria such as order risk level, product type, collection, or user behaviour. It can also be used for age verification, a growing requirement for sellers of regulated or age-restricted products.
Mr Ciulde, who has worked in fraud prevention for seven years, said fraud techniques were evolving rapidly, requiring constant adaptation. “We use AI to automate our solutions and create industry-specific integrations that solve real issues,” he said. “However, it’s vital to adapt and constantly improve each element; otherwise, fraudsters are going to bypass the system.”
The app is built on iDenfy’s global identity verification infrastructure, which supports more than 3,000 identity documents across more than 200 countries and territories. The system verifies passports, identity cards, driving licences, and residence permits, and uses biometric face recognition with 99.9% accurate 3D liveness detection to confirm that users are physically present and match their documents.
“As e-commerce fraud becomes more sophisticated, merchants need smarter ways to verify who is really behind a transaction,” Mr Ciulde added. “Our goal is to make this process transparent for both businesses and customers.”
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