diff --git a/Helper/PurchaseHelper.php b/Helper/PurchaseHelper.php
index 3026ba6a..28be6cc2 100644
--- a/Helper/PurchaseHelper.php
+++ b/Helper/PurchaseHelper.php
@@ -373,6 +373,41 @@ public function postCaseToSignifyd($caseData, $order)
         return $id;
     }
 
+    /**
+     * @param Order $order
+     * @return bool
+     */
+    public function cancelCaseOnSignifyd(Order $order)
+    {
+        $case = $this->getCase($order);
+        if ($case->isEmpty()) {
+            $this->_logger->debug("Guarantee cancel skipped: case not found for order " . $order->getIncrementId());
+            return false;
+        }
+
+        $this->_logger->debug('Cancelling case ' . $case->getId());
+
+        $guarantee = $case->getData('guarantee');
+        if (empty($guarantee) || in_array($guarantee, array('DECLINED', 'N/A'))) {
+            $this->_logger->debug("Guarantee cancel skipped: current guarantee is {$guarantee}");
+            return false;
+        }
+
+        $disposition = $this->_api->cancelGuarantee($case->getCode());
+        $this->_logger->debug("Cancel disposition result {$disposition}");
+
+        if ($disposition == 'CANCELED') {
+            $case->setData('guarantee', $disposition);
+            $case->save();
+
+            $order->setSignifydGuarantee($disposition);
+            $order->save();
+            return true;
+        }
+
+        return false;
+    }
+
     /**
      * Check if case has guaranty
      * @param $order
diff --git a/Observer/Cancel.php b/Observer/Cancel.php
new file mode 100644
index 00000000..ff1d375f
--- /dev/null
+++ b/Observer/Cancel.php
@@ -0,0 +1,70 @@
+<?php
+/**
+ * Copyright 2017 SIGNIFYD Inc. All rights reserved.
+ * See LICENSE.txt for license details.
+ */
+
+namespace Signifyd\Connect\Observer;
+
+use Magento\Framework\App\Config\ScopeConfigInterface;
+use Magento\Framework\Event\Observer;
+use Magento\Framework\Event\ObserverInterface;
+use Magento\Sales\Model\Order;
+use Signifyd\Connect\Helper\PurchaseHelper;
+use Signifyd\Connect\Helper\LogHelper;
+use Signifyd\Connect\Helper\SignifydAPIMagento;
+
+/**
+ * Observer for purchase event. Sends order data to Signifyd service
+ */
+class Cancel implements ObserverInterface
+{
+    /**
+     * @var \Signifyd\Connect\Helper\LogHelper
+     */
+    protected $logger;
+
+    /**
+     * @var \Signifyd\Connect\Helper\PurchaseHelper
+     */
+    protected $helper;
+
+    /**
+     * @var SignifydAPIMagento
+     */
+    protected $api;
+
+    /**
+     * @var ScopeConfigInterface
+     */
+    protected $coreConfig;
+
+    public function __construct(
+        LogHelper $logger,
+        PurchaseHelper $helper,
+        SignifydAPIMagento $api,
+        ScopeConfigInterface $coreConfig
+    ) {
+        $this->logger = $logger;
+        $this->helper = $helper;
+        $this->api = $api;
+        $this->coreConfig = $coreConfig;
+    }
+
+    public function execute(Observer $observer)
+    {
+        if(!$this->api->enabled()) return;
+
+        try {
+            /** @var $order Order */
+            $order = $observer->getEvent()->getOrder();
+
+            // Check if case already exists for this order
+            if ($this->helper->doesCaseExist($order)) {
+                $result = $this->helper->cancelCaseOnSignifyd($order);
+            }
+        } catch (\Exception $ex) {
+            $this->logger->error($ex->getMessage());
+        }
+    }
+}
diff --git a/etc/events.xml b/etc/events.xml
index be57e4b3..95cb76e0 100644
--- a/etc/events.xml
+++ b/etc/events.xml
@@ -6,4 +6,8 @@
     <event name="sales_order_save_commit_after">
         <observer name="onPurchase" instance="Signifyd\Connect\Observer\Purchase" />
     </event>
+
+    <event name="order_cancel_after">
+        <observer name="onCancel" instance="Signifyd\Connect\Observer\Cancel" />
+    </event>
 </config>