Fake COD orders look exactly like real ones until the parcel comes back — and by then you have already paid for shipping both ways.
Why fake COD orders happen
With cash on delivery, placing an order costs nothing. That invites prank orders, competitor sabotage, buyers testing your store and organised rings that place many orders from new numbers. Industry data suggests a failed COD order costs a seller ₹180–240 in shipping and handling with zero revenue [1].
Warning signs to watch
- Several COD orders from the same new number or address within an hour.
- Phone numbers that are switched off or never answer.
- Addresses with no house number, landmark or a mismatched pincode.
- Unusually high order values from first-time buyers.
- Names like "test", "abc" or celebrity names.
Checks that actually stop fake orders
- OTP-verified mobile login at checkout — no OTP, no order.
- Address validation so every order has a deliverable pincode and complete address.
- Risk scoring using buyer history across stores, not just your own.
- Limits on repeat COD from the same buyer within a short window.
- Order confirmation on WhatsApp before dispatch for medium and high-risk orders.
How RakshaSetu stops fake orders
RakshaSetu Pay replaces your checkout with a one-tap, OTP-verified checkout. Every buyer is verified, every address is validated, and every order gets a risk score before it lands in your dashboard. Risky orders are flagged for you, and genuine buyers check out faster than before.
Start free — ₹0 a month →Frequently asked questions
How do I identify a fake COD order?
Look for unverified phone numbers, incomplete addresses, repeat orders from new accounts and unusually high first orders. Verifying the phone with an OTP removes most of them.
Can I block a buyer who keeps refusing COD?
Yes. With buyer-level risk history you can restrict COD for buyers with repeated refusals while still letting them pay online.
Does OTP at checkout hurt conversion?
A well-designed one-tap OTP flow is faster than typing name, email and password, so genuine buyers usually convert better.
Sources
- [1] Shipmozo — COD fraud in Indian e-commerce
Figures are industry estimates from the sources above and vary by category and business.