Online shopping offers convenience and discounts, but a new digital scam is putting both shoppers and sellers at risk. Known as Triangulation Fraud, this scam involves a fake middleman who exploits genuine transactions, causing financial loss and reputational damage.
🔍 What is Triangulation Fraud?This fraud is an advanced form of Card-Not-Present (CNP) fraud, where cybercriminals act as a middleman between buyers and real sellers. It involves three key players:
1️⃣ Fake Seller – A fraudulent online store that tricks buyers into making purchases.
2️⃣ Genuine Supplier – A legitimate seller unknowingly fulfilling fraudulent orders.
3️⃣ Unaware Buyer – A customer who receives the order but doesn’t realize they were part of a scam.
1️⃣ Scammer Poses as a Seller 🛍️
They create a fake online store or list deeply discounted products on e-commerce platforms.
They advertise high-demand products like mobiles, laptops, and jewelry at unrealistic prices.
2️⃣ Buyer Places an Order 💳
A genuine customer purchases the product, thinking it's a real deal.
They make the payment via UPI, bank transfer, or credit card.
3️⃣ Scammer Buys the Product from a Legitimate Seller 📦
The fraudster uses a stolen credit card or hacked bank account to purchase the same product from a genuine e-commerce site.
They enter the buyer's address for delivery.
4️⃣ Buyer Receives the Product, But the Real Victim is Elsewhere 🚨
The buyer gets their order, unaware of the fraud.
Meanwhile, the actual owner of the stolen credit card notices unauthorized transactions and files a chargeback.
5️⃣ Financial Loss for Genuine Sellers 💸
The real e-commerce platform has already shipped the product.
The stolen credit card owner disputes the transaction, forcing the platform to refund the money.
The fake seller disappears, leaving both the e-commerce platform and the bank to bear the loss.
✅ Avoid Unrealistic Discounts – If a deal looks too good to be true, it probably is!
✅ Shop Only on Trusted Websites – Use official brand websites and verified sellers on marketplaces.
✅ Monitor Your Credit Card Statements – Regularly check for unauthorized transactions.
✅ Enable Two-Factor Authentication (2FA) – Use extra security for payment verification.
✅ E-commerce Platforms Should Use AI Detection – Advanced security systems should detect fraudulent sellers before they scam users.
Triangulation Fraud is on the rise, making both shoppers and sellers vulnerable. Stay alert, verify deals, and follow secure payment practices to avoid falling into this digital trap. 🔐💻
