How to delete a fraudulent gift card purchase?

Hey all,

There was a fraudulent gift card purchase through our store for a PW Gift card. Paypal is handling the refund – we just need to get the order out of our system without initiating a further refund or sending a gift card code to the recipient.

What’s the best way to do this?

The order is currently in Processing – thus, no gift card code has been created. Should we just mark the order as cancelled? This would NOT initiate a refund on our end, correct?

Thanks for your help!