Triangulation Fraud

Triangulation fraud is a sophisticated form of online scam that involves three parties: the unsuspecting customer, the legitimate merchant, and the fraudster posing as a legitimate seller. This type of fraud is particularly deceptive because it can appear completely legitimate to all involved parties until the scam is fully realized.

Here’s how triangulation fraud typically unfolds:

Triangulation fraud is damaging because it affects multiple victims – the credit card holder, the buyer, and the legitimate merchant. The buyer may also face legal issues or be drawn into the complications once the fraud is uncovered, especially if they are asked to prove their innocence.

This type of fraud shows the importance of vigilance in online marketplaces, not only for buyers but for sellers as well. It underscores the need for secure payment processes and the necessity of monitoring for unusual transaction patterns that could indicate fraudulent activity.