Today we ran a story about "
triangulation fraud," a scam that relies on the willingness of online merchants to ship to a different address than the customer's billing address.
It happens when a scammer sells an item on a site like eBay and gets paid from the customer, then places an order for that item with another retailer using a stolen credit card and has that retailer send the item to his/her customer (that's where the different ship-to address comes in to play).
The scammer has safely been paid by the eBay customer, who rarely complains since they received their item - it's the retailer who sent the item to the customer who eventually receives a chargeback from the owner of the stolen credit card.
But a reader from Toronto says it's important for sellers to be willing to send to a different ship-to address. He explains his reasons for having his eBay.com purchases shipped to an address belonging to his sister in the US:
1) Most American sellers do not like shipping outside of USA. Many won't ship at all. As for the rest, the shipping costs are always much higher than domestic. In some instances 10x as much.
2) All imports especially from the US are subject to duty, 2 taxes and a $5 collection fee. The charges are at the whim of Canada Customs. I buy collectibles where the value is really indeterminable but Customs will assess a value of their choosing.
He said many if not most Canadian buyers who purchase from US eBay sellers have a US ship-to address.
"I hope you add my letter to your story and exclude those of us who reside outside USA from suspicion of fraud," he said.
eBay described the fraud in an article on the eBay Enterprise website and provided some tips:
What are the Characteristics of Triangulation Fraud?
Easily resalable products such as:
Baby/Kid products: strollers, cribs, etc.
Lego products
Pet supplies
Nutritional Supplements
Tools
Electronics
Small appliances
Clean data
This is in respect to the credit card, billing, and shipping information on the order. The criminal will generally make the order look as clean as possible to avoid raising suspicion.
Questionable email addresses or email domains
The billing name is John Smith. The email is sandy.connor@outlook.com
Security expert
Brian Krebs wrote about the issue on Tuesday: he noted that scammers use the customer's correct shipping address and name, but may list a phone number that goes somewhere else - perhaps to a voicemail owned and controlled by the fraudster. So even calling the customer to verify the order doesn't always work to detect triangulation fraud.
What do you think of sending orders to a different ship-to address? Does it depend on the venue on which the order is placed?
If you allow different ship-to addresses, what measures do you take to reduce the chances of fraud?