Building a Shopify Fraud Detection App with Gadget.dev: Guide

Shopify fraud detection is a growing challenge for online stores. From sneaky promo abuse to repeat free trial exploits, fraudsters are getting more creative, and the damage goes beyond just lost revenue. It erodes customer trust and disrupts the shopping experience merchant’s have worked hard to build.

Our client, a leading energy drink supplier, approached us after repeated abuse of their free trial offer, with multiple free orders from the same address, leading to significant losses.

To address this issue, our Shopify development agency created a custom app utilizing Gadget.dev. It checks shipping addresses in real time during checkout, removes the freebie, and blocks the order if it matches a past free trial.

Want to protect your store? Hire a Shopify app developer who knows how to build smart and tailored fraud apps. In this blog, we’ll share our journey of building a custom Shopify fraud prevention app and tips for creating an effective solution.

Why a Custom Shopify App?

A custom Shopify app is a specially built software designed just for your store’s unique needs.Unlike Shopify App Store’s ready-made apps, custom apps offer greater flexibility and control, addressing specific challenges that off-the-shelf tools can’t handle.

For example, custom apps can:

• Enable customers to design personalized products with real-time previews, such as the Custom wall art design tool.
• Allow complex product configurations like building custom PCs with compatibility checks.
• Streamline operational tasks such as printing custom product labels.
• Automate business processes like dropshipping order fulfillment and inventory management.

Key features of the Custom Shopify Fraud Detection App 

Here are the key features that make our custom Shopify fraud detection app super effective at stopping free trial abuse and keeping your store safe:

Key Feature	Utility
Address Matching Algorithm	Compares every part of the address like line 1, city, region, and postcode. Smartly handles things like commas, extra spaces, and autofill quirks. Works smoothly with manual input, Shopify Pay (ShopPay) autofill, and Google address suggestions.
Cart Modification	Automatically removes the free trial product whenever a matching address is found.
Checkout Blocking	Instantly shows an error message at checkout to stop the order if something’s off.
Order Data Synchronization	Imports all Shopify orders into Gadget’s database so everything stays in sync.
Performance Optimization	Built custom counting tables to speed up match lookups in real time — no more waiting around.

Shopify Fraud Detection App Development: Case Study

The client is one of the UK’s leading suppliers of energy and hydration drinks. To drive sales, they offer free samples to first-time users. But there was a catch: some customers discovered a loophole. They’d place multiple orders using different accounts but the same address, taking advantage of the free sample offer repeatedly.

This misuse was costing the client money and impacting their business. That’s where our team stepped in. Our team at The Brihaspati Infotech built a system that checks every shipping address against past orders, blocking repeat free samples to the same address.

The result? A significant drop in unnecessary costs and a smoother, more secure sales process. Here’s how we developed it:

1. Setting Up the Gadget Dev App

• Created a new project on Gadget.dev.
• Used Gadget.dev for streamlined Shopify backend development.
• Connected the project to Shopify’s API.
• Gained secure access to order and customer data.

2. Using event triggers for real-time fraud detection

• Set up event triggers in Gadget.dev for key Shopify events.
• Focused especially on the orders/create event to catch issues as they happen.
• Enabled instant fraud detection the moment an order is placed.
• Made sure processing happens fast enough before the order is completed.

3. Implementing fraud scoring logic 

• Built a rules-based system to score the risk level of each order.
• Created criteria based on things like address matching and order history.
• Assigned risk scores to flag suspicious orders.
• Designed the system to be flexible, so rules can be adjusted anytime.

4. Storing flagged orders in Gadget.dev’s database

• Saved all flagged orders in Gadget.dev’s internal database.
• Kept a centralized record for easy access and quick reviews.
• Ensured data is persistent for thorough reporting and audits.
• Supported efficient querying to help with ongoing fraud analysis.

5.  Sending alerts via Shopify admin notifications

• Set up instant notifications for any flagged orders.
• Delivered alerts straight to the Shopify admin dashboard.
• Helped store managers react quickly to potential fraud attempts.
• Boosted overall store security and gave better control over operations.

Need a Custom Solution for Your Business? Our custom Shopify app development services can help you build the perfect solution to meet your unique needs.

Benefits of Custom Shopify Fraud Detection App

Implementing a custom Shopify fraud detection app brings real, measurable benefits that protect your business and streamline your store operations. Here are the key advantages we delivered:

• Direct financial savings by blocking fraudulent orders before they go through.
• Operational efficiency thanks to cutting out time-consuming manual reviews of free product abuse.
• Improved customer experience with instant checkout feedback that stops confusion before it starts.

Looking to secure your store and improve operations? Explore professional Shopify development services.

Technical Architecture of Custom Shopify App

Here’s a quick overview of the platform, tools, and technologies we used to build the custom Shopify fraud detection app.

Component	Details
Platform	Gadget.dev
Programming Language	Node.js (within Gadget.dev environment).
Database	Gadget’s internal database system.
Hosting	Gadget.dev (production mode).
Integrations	Shopify API + Gadget API + Shopify Checkout Extensions.
Third-party APIs	None external (all internal via Shopify & Gadget APIs).

Frequently Asked Questions

Conclusion

Implementing a custom Shopify fraud detection app is a game-changer for online stores. It stops fraudulent orders in their tracks, saves money, and keeps your customer experience smooth and trustworthy.

At The Brihaspati Infotech, we specialize in building tailored Shopify solutions that fit your unique business needs and protect your revenue.

Don’t let fraud put your business at risk. Contact us today for a free consultation and see how our custom Shopify app can protect your store from fraud and streamline your operations