Security News > 2024 > April > Triangulation fraud: The costly scam hitting online retailers

Could you shed light on the severe financial losses that result from triangulation fraud and explain the intricacies of this scheme?

The payments industry estimates triangulation fraud causes financial losses among merchants to range from $660 million to $1 billion monthly.

With this fraud scheme, threat actors create illegitimate online storefronts where they offer bargains on in-demand or luxury goods and services.

What immediate actions should security professionals in the finance and retail sectors take to protect their operations from these fraud threats?

Threat actors often exploit weak merchant onboarding practices to set up fraudulent merchants, which is a common tactic used by threat actors perpetrating fraud schemes such as triangulation.

As we look ahead, technological advancements will unfortunately continue to aid in the proliferation of fraud schemes, such as the use AI and ALMs to develop novel malware capable of identifying vulnerabilities within transaction messaging or fraud controls.

News URL

https://www.helpnetsecurity.com/2024/04/30/mike-lemberger-visa-triangulation-fraud-schemes/