TERM:
Triangulation fraud

Definition:

Considered as one of the most complex ecommerce attack methods, triangulation fraud involves three points.

• An unsuspecting customer who places an order on an auction or marketplace using some form of credit, debit, or PayPal tender.
• A fraudulent seller who receives the order and then places the order for the actual product with a legitimate ecommerce website using a stolen credit card.
• A legitimate ecommerce website that processes the criminal’s order.