Cash on Delivery (COD) is popular in many markets, but it attracts fraud: fake orders, wrong addresses, and customers who refuse or disappear at delivery. Here’s how to prevent COD fraud orders and protect your Shopline or e-commerce store.
What COD Fraud Looks Like
COD fraud includes: orders placed with fake or invalid addresses, wrong or unreachable phone numbers, customers who refuse delivery after the product is shipped, and repeat offenders who order and never pay. Each failed delivery costs you shipping, time, and sometimes the product. Reducing these orders saves money and keeps operations smooth.
Verify Phone Numbers Before Shipping
Call or SMS the customer to confirm the order and that the number is correct. A quick “We’re preparing your order, please confirm your address” call or message helps catch typos and fake numbers. If the number doesn’t work or the person denies the order, cancel or put the order on hold before you ship. This simple step filters many COD fraud attempts.
Validate Addresses
Use address validation or check that the address is complete and deliverable in your courier’s system. Incomplete, obviously fake, or high-risk areas (e.g. known fake-delivery zones) can be flagged. For first-time COD customers or large orders, consider an extra check: call to confirm address details before dispatching.
Set COD Limits and Rules
Limit COD order value (e.g. first order max amount, or COD only for orders below a threshold). High-value COD orders are riskier. You can also restrict COD by location—disable or limit COD for areas with a history of fraud or no-shows. Many platforms (including Shopline) let you set payment rules by region or cart value.
Track and Manage Orders in One Place
When you have clear order tracking and status, you can spot patterns: same address with different names, repeated refusals, or suspicious timing. Tools like Orderpolice for Shopline help you track orders, manage fulfillment, and get alerts so you can act on risky orders before or after dispatch. Good order management is the base for preventing COD fraud.
Keep a Blacklist
Maintain a list of phone numbers, addresses, or names that have refused delivery, given fake details, or been abusive. Before accepting or shipping a new COD order, check against this list. You can do this in a spreadsheet or use an app that supports blocklists. Blocking repeat offenders directly reduces COD fraud.
Require Minimal Customer Info
Where possible, require a valid phone number and full address. Optional fields like alternate phone or landmark can help couriers and reduce “address not found” failures. Avoid accepting COD with obviously fake or incomplete data; reject or contact the customer before processing.
Work With Your Courier
Some couriers offer COD verification, address checks, or fraud scores. Use their dashboard to see delivery attempts and reasons for failure. Share your blacklist if the courier supports it, and follow their guidelines for packaging and documentation so disputes are easier to resolve.
Review and Adjust
Regularly review failed or refused COD orders. Identify common patterns (areas, product types, order size) and tighten rules for those segments. Use your sales and order analytics to see which channels or regions have more COD issues, and adjust limits or verification accordingly.
Summary
To prevent COD fraud orders: verify phone numbers before shipping, validate addresses, set COD value and location limits, use order tracking and management (e.g. Orderpolice) to spot patterns, keep a blacklist of bad customers, require complete customer info, cooperate with your courier, and review failed orders to improve rules over time. These steps help you cut fraud and losses while still offering COD where it works.