Don’t Let Fraud Losses Surprise You

1. Know your enemy. First, you have to understand whom the enemy of your platform or marketplace is. You might not realize that there are lots of different kinds of fraud and loss, including merchant identity fraud, merchant credit risk and buyer identity fraud. Most likely, you'll be concerned with collusion fraud. What this means is someone setting up a merchant or fundraiser account with a fake or stolen identity, then using stolen credits and fake buyer identities to pay their own merchant account. They get the money and disappear, and you're stuck with the charges.