What is triangulation fraud? Learn here.

Triangulation fraud happens when an innocent customer makes a purchase on a third-party marketplace, except the item they receive was fraudulently purchased from another retailer’s website.

Here's how triangulation fraud works:

  • A fraudster sets up a third-party marketplace to look like a legitimate online store.
  • A valid customer purchases a product on the third-party marketplace.
  • The fraudster collects the valid customer’s shipping and payment information and orders the same product from a legitimate retailer.
  • The fraudster provides shipping information for the valid customer and payment information stolen from another customer on the legitimate retailer’s site.
  • The legitimate retailer processes the fraudster’s order, shipping it to the valid customer’s address provided during checkout and charging the innocent victim’s credit card.
  • The valid customer receives the actual item they ordered, but they’re credit card information is now likely to be used in another transaction with another valid customer.

Related Topics

Ecommerce Fraud Basics

Chargeback Management

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