Fraud Prevention, Returns, and Chargebacks: complete guide

Eduardo Monteiro · 2026-10-07

Table of contents

1. fake COD orders: red flags to filter out

2. COD return rate by country

3. customer blacklist: how to build and use one

4. spotting competitors in your ads

5. returns flow that puts products back in stock

6. card disputes: documentation and winning

7. strategies to reduce fake orders

8. managing COD returns in europe

9. final fraud prevention and returns checklist

1. fake COD orders: red flags to filter out

Identifying fake orders is essential to minimizing losses. Here are 11 signs that a COD (Cash on Delivery) order may be suspicious:

• Incomplete or incorrect address
• Recipient's name doesn't match the address
• Invalid phone number
• Large order with a low total value
• New customer with a history of returns
• Delivery requested to high-risk areas
• Frequent address changes on previous orders
• Orders placed at unusual times
• No interaction with the website
• Use of temporary email addresses
• Order with multiple high-value items

2. COD return rate by country

Return rates vary significantly. Here are some figures:

• Brazil: 20% to 30%
• Portugal: 15% to 25%
• France: 10% to 20%
• Germany: 5% to 15%

6 actions that reduce return rates the most:

• Improve your product description
• Use high-quality images
• Improve the checkout process
• Offer efficient customer support
• Implement clear return policies
• Use address validation at checkout

3. customer blacklist: how to build and use one

Creating a blacklist is crucial to preventing fraud. Follow these steps:

1. Collect data on customers who place fraudulent orders
2. Record details like name, email, and phone number
3. Share it with your customer support team and call center
4. Update it regularly with new data
5. Set up an alert system in your CRM

Common mistakes: not sharing the blacklist with the support team, not updating the information, and using vague criteria for adding someone to it.

4. spotting competitors in your ads

To spot competitors clicking your ads and placing fake orders, use these tactics:

• Monitor suspicious IPs
• Analyze ad click patterns
• Check where orders are coming from (referral)
• Set up an alert system for repeat orders

If an order looks suspicious, consider not shipping it and investigating further.

5. returns flow that puts products back in stock

Preventing inventory losses is crucial. Follow this flow:

1. Receive the returned product
2. Inspect the item's condition
3. Record the return in the system
4. Refund the customer, if applicable
5. Put the product back in stock
6. Update the accounting records to reflect the return

6. card disputes: documentation and winning

The timeline for a card dispute is usually:

1. Customer initiates the dispute
2. You're notified by the card issuer
3. Response deadline (usually 7-10 days)
4. Submit documentation (proof of delivery, customer communications)
5. Card issuer makes a decision (usually within 30 days)

Required documents: proof of shipment, customer communications, terms of service.

7. strategies to reduce fake orders

Here are a few effective strategies:

• Implement CPF/CNPJ validation at checkout
• Use address verification systems
• Offer a discount for paying upfront
• Run automated risk analysis

8. managing COD returns in europe

To manage COD returns in Europe, follow these 7 steps:

1. Show your return policy at checkout
2. Provide prepaid return labels
3. Make it easy to communicate about returns
4. Set clear return deadlines
5. Perform quality inspections on returned products
6. Record the reason for the return
7. Analyze return data to identify improvements

9. final fraud prevention and returns checklist

1. Implement address validation at checkout
2. Create and maintain a customer blacklist
3. Monitor return rates by country and adjust your strategies
4. Set up a clear returns process
5. Document all card disputes
6. Train your team to spot suspicious orders
7. Use ad monitoring tools
8. Regularly audit your fraud prevention processes
9. Analyze customer feedback about returns
10. Test promotions that could reduce chargebacks

How has your business been handling fake orders and returns? Share your numbers and experiences!