Triangulation Fraud is a sophisticated scheme where fraudsters create a three-way transaction pattern to obscure illegal purchases using stolen payment information. This method often involves legitimate-looking storefronts as intermediaries.
Key Components
- Stolen card data
- Fake marketplaces
- Legitimate merchants
- Multiple transactions
- Price manipulation
Fraud Process
- Payment information theft
- Storefront creation
- Order placement
- Shipping redirection
- Money laundering
Warning Signs
- Below-market prices
- New marketplace sites
- Unusual shipping routes
- Payment irregularities
- Multiple redirections
Prevention Methods
- Transaction monitoring
- Merchant verification
- Address validation
- Payment authentication
- Pattern detection
Best Practices
- Verify merchants
- Check pricing
- Monitor shipments
- Validate addresses
- Track patterns
Triangulation Fraud requires comprehensive detection systems and cooperation between merchants, payment processors, and security teams.