Triangulation Fraud

What is Triangulation Fraud?

Triangulation fraud is a complex scheme involving three parties: an unsuspecting customer, a fraudulent online storefront, and a legitimate merchant. The fraudster sets up a fake store, takes a real customer’s order, and then uses stolen credit card details to buy the item from a legitimate merchant and ship it to the customer.

Why It Matters

• The legitimate merchant eventually faces a chargeback from the owner of the stolen credit card, losing both the money and the product.

• The unsuspecting customer may have their own credit card details stolen by the fraudster’s fake storefront for future use.

• It is difficult to trace because the customer actually receives the product they ordered, making them unlikely to report any issues initially.