What is Marketplace Fraud?

Marketplace fraud impacts two sides, seller and buyer. Common schemes are sham listings, non‑delivery, triangulation with stolen cards, counterfeit goods, bust‑outs after payout, money laundering via over‑priced trades, etc. Frictionless onboarding with no guardrails makes your platform a cash machine for rings.

Signals: sellers that are brand‑new with aggressive pricing, recycled photos, inconsistent geo vs. inventory claims, sudden refund requests, payouts to new bank accounts. On the buy side: chargebacks cluster around certain SKUs, couriers know the “no such address” address; the device reappears with a new email.

Program controls: verify entities and individuals up front—KYB that’s strong for sellers plus signer identity verification; hold funds until proof of delivery settles; and start with low early‑life limits. Use graph analytics to find collusion and reshipper networks. For payments, deploy and tune controls from payment fraud prevention, and preserve evidence for representment. Trust is a flywheel; protect it.