What Are the iFraud™ Operation Modes?

iFraud™ Operation Modes

iFraud™ can be configured in three different operation modes based on your e-commerce store's security requirements and data privacy preferences:

• Disabled
• Local Mode
• Centralized Mode

You can easily configure your preferred operation mode via the iFraud Settings page in your IHASHOP admin panel.

Settings path:

/secure/ifraud/settings

Disabled Mode (Off)

When Disabled mode is selected, iFraud™ is completely deactivated.

In this mode:

• Risk records are not queried.
• No iFraud™ alerts or risk warnings are displayed on orders.
• Refund requests bypass risk assessment.
• No connection is established with the centralized shared risk network.
• New transactions are not cross-referenced with existing risk profiles.

Your historical risk records remain securely stored in your database, but they will not trigger any alerts until the module is re-enabled.

Local Mode

In Local Mode, iFraud™ exclusively utilizes the risk records generated within your own e-commerce store.

If a customer's email address, phone number, IP address, domain, or customer account has been previously flagged as risky in your store, new orders and return requests are automatically matched against these records.

When a match is detected, an alert is displayed on your admin panel.

Key features of Local Mode:

• Risk data is stored locally in your store's private database.
• Only your store's historical risk data is used for fraud prevention.
• The centralized shared risk network is not queried.
• You will not receive risk alerts from other IHASHOP merchants.
• Your store does not contribute risk data to the central network.
• Personally Identifiable Information (PII) never leaves your store.

Choose Local Mode if you prefer to keep your fraud prevention data completely isolated and handled internally.

Centralized Mode (Network-Connected)

Centralized Mode allows your store to leverage the collaborative IHASHOP shared risk network in addition to your local risk database.

In this mode, when a new order or refund request is created, the transaction is cross-referenced with both your local database and secure risk fingerprints in the centralized network.

This means if another IHASHOP merchant has previously flagged a fraudulent entity, you will receive an instant warning even if that customer is shopping at your store for the first time.

To ensure strict privacy compliance, details of risk records created by other stores are never disclosed. Hidden information includes:

• Plain-text email addresses
• Phone numbers
• IP addresses
• Risk descriptions and custom notes
• Evidence summaries
• The identity of the store that created the record

The centralized network only returns a binary match confirmation during an active order or refund process.

What Data is Shared with the Central Network?

In Centralized Mode, customers' plain-text personal data is never transmitted to the central system.

Sensitive identifiers such as email addresses, phone numbers, IP addresses, or domain names are converted into irreversible, secure cryptographic fingerprints (hashes). The central network performs matches exclusively using these secure fingerprints.

This ensures that if the same data is used across another IHASHOP store, a match is triggered without exposing any customer PII.

The Principle of Reciprocity

Centralized Mode operates on a collaborative, mutually beneficial basis.

E-commerce stores that benefit from the shared risk network's fraud warnings also contribute their own verified, non-sensitive risk fingerprints to the collective database.

This cooperative approach ensures a robust, up-to-date global risk pool powered by the verified experiences of active merchants.

What Happens If the Central Connection Fails?

A temporary connection loss to the centralized risk network will not disrupt your store's checkout or admin operations.

During a connection outage:

• Order processing continues seamlessly.
• Refund requests remain fully operational.
• Local risk database queries continue to function.
• Admin alerts for local risk matches are still displayed.
• Only centralized network matches are temporarily unavailable.

Once the connection is restored, queries to the shared risk network resume automatically.

Which Mode Should You Choose?

Select the ideal operation mode based on your store's operational priorities and data sharing preferences.

Choose Disabled Mode if:

• You want to temporarily pause iFraud™ alerts.
• You prefer to disable transaction risk checks entirely.

Choose Local Mode if:

• You only want to rely on risk data generated within your own store.
• You prefer not to connect to any external risk databases.
• You require complete data isolation for compliance or internal policies.

Choose Centralized Mode if:

• You want maximum protection by combining local data with a collaborative global risk network.
• You want to proactively block fraudulent orders from users flagged by other IHASHOP merchants.
• You want to contribute to and benefit from the IHASHOP e-commerce security ecosystem.

You can adjust these settings at any time via the iFraud Settings dashboard.

Conclusion

iFraud™ operation modes offer flexible risk management tailored to your business needs.

While Local Mode relies strictly on your store's history, Centralized Mode adds a powerful layer of collective intelligence via the anonymous IHASHOP shared risk network.

In both active modes, iFraud™ acts as an advisory system for administrators. It does not automatically block, cancel, or reject orders, leaving the final decision in your hands.