Triangulation Fraud

[autobodytoolmart]

Anyone have experience with triangulation fraud? Seller keeps copying our listings on Ebay and selling to customers. Then purchases the items from our website using stolen credit cards. Told Ebay but they won't do anything because the fraud is happening with our company and not them. Sent message to seller notifying him of that we are aware of the fraud. He stopped selling but now he is back again in full force today. 

[dhbookds]

Are they buying on Ebay/paying thru paypal?

[pburn]

Doesn't your Blocked Buyer List work to block this person from buying from you? Or is the person using different ids all the time for the purchases?

How did you discover the credit cards being used are stolen? Is the buyer (or the "real" owner of the card(s) filing credit card chargebacks for unauthorized use of a credit card?

P.S. For those who are unfamiliar with "triangulation fraud:"

https://www.radial.com/insights/understanding-triangulation-fraud

[couldabeenworse]

You should be contacting local law enforcement, who can in turn contact law enforcement in the crook's jurisdiction.  Either can also get further information from eBay that is not available to you.

[nodr-45]

The fraudster is a seller on eBay, but the items they are purchasing are through your company's website, not eBay?

Did you discuss this with your payment processor to find out ways to detect the fraud sooner?

[autobodytoolmart]

No they are selling items on Ebay and then going to our business site and buying the items with stolen credit cards. 

[autobodytoolmart]

They are not buying from us on Ebay. They are selling to customers on Ebay and purchasing the items on our website with stolen credit cards and having us ship to his customers. 

[autobodytoolmart]

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@nodr-45 wrote:

The fraudster is a seller on eBay, but the items they are purchasing are through your company's website, not eBay?

Did you discuss this with your payment processor to find out ways to detect the fraud sooner?

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We are able to stop the orders now that we know what is happening. The thing with triangulation fraud is that most of the time businesses do not know it is happening until they start getting chargebacks. That is what happened to us 2 weeks ago after we realized what occured. I am also concerned for other sellers who he may be buying from also. Once he realizes we won't ship the items he will probably try and defraud someone else.

[nodr-45]

Call eBay again and ask for the Trust & Safety department. Even though they are purchasing from your company's website, they are selling those items through eBay so eBay should be alerted that they're using stolen credit cards.

Actually, you might have more luck reporting them to eBay for violating their strict rules on drop-shipping. The seller obviously doesn't own the merchandise or have an agreed upon contract with those they're using to drop ship.

[autobodytoolmart]

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@nodr-45 wrote:

Call eBay again and ask for the Trust & Safety department. Even though they are purchasing from your company's website, they are selling those items through eBay so eBay should be alerted that they're using stolen credit cards.

Actually, you might have more luck reporting them to eBay for violating their strict rules on drop-shipping. The seller obviously doesn't own the merchandise or have an agreed upon contract with those they're using to drop ship.

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Thank you for your reply. I will contact Ebay again and bring up these issues. 

[gracieallen01]

I think you need to report this to USPS for the Mail Fraud part and to the law enforcement agencies (local and FBI), as well.  ebay has no proof of it happening, and, basically, no involvement and they sure have no intent to discourage commerce.

[tracdea1]

Your problem is of a criminal nature, not an ebay problem. You need to make a report with the local, state and /or federal authorities, and you will need proof that is actually what is occurring.

Ebay is just the platform, and there is no way to check every single member's credibility before they sign up. They weed them out with violations.

[autobodytoolmart]

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@tracdea1 wrote:

Your problem is of a criminal nature, not an ebay problem. You need to make a report with the local, state and /or federal authorities, and you will need proof that is actually what is occurring.

Ebay is just the platform, and there is no way to check every single member's credibility before they sign up. They weed them out with violations.

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Unfortunately the authorities won't do anything about it either until the fraud exceeds a monetary level. Not only that the seller may not even be in this country. The cell phone provided to us is a china mobile number.

[gracieallen01]

Just because it is a Chinese mobile number, doesn't mean the person is in China.  I keep getting telemarketers calling with the same area code as I have, but they are in India.  

IF the authorities say, actually say, that they have to have a specific monetary amount before acting, at least file a report with everyone you can, or the person from whom the credit card is stolen might implicate you as complicit for NOT reporting the crime(s) - each instance is a separate crime.

[luckythewinner]

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@autobodytoolmart wrote:

 Told Ebay but they won't do anything because the fraud is happening with our company and not them.

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I am not surprised eBay "won't do anything" based on your assertion that this seller is selling merchandise purchased somewhere else with stolen credit cards. 

If they did, then unscrupulous eBay sellers would have a field day eliminating their competition by telling eBay that their competitor is selling merchandise purchased somewhere else with stolen credit cards.