When this piece came out, we didn’t know what it was called, but Getcho had been blocking triangle fraud for about six months. Today, Getcho helps r

Triangle fraud in brick & mortar retail

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2024-11-29 23:30:08

When this piece came out, we didn’t know what it was called, but Getcho had been blocking triangle fraud for about six months. Today, Getcho helps retailers with their local delivery strategy and fraud protection comes out of the box.

All over the world, bad actors buy and sell stolen credit cards on the black market. While you can buy things online with a stolen card, it’s not always easy to repay one’s “investment” and turn credit into cash. A naive strategy would be to buy merchandise and then sell it elsewhere — you could buy with credit and sell for cash.

Just one more wrinkle: Victims often flag fraudulent purchases and asset protection departments investigate. Since the retailer knows the delivery address, the unknowing recipient can be contacted. They are then prone to charging back and reporting the fraud which could result in the online store being shut down.

Thus the link between the criminal and the fraud vanishes. Considering there are four stakeholders — the credit card victim, the unknowing buyer, the unknowing retailer, and the delivery service — it might be more aptly called square fraud.

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