Amazon Triangulation Scam: How It Works and How to Avoid It

Every now and then, cybersecurity experts warn of a type of scam that, while not new, is becoming relevant due to its prevalence. This is a case of triangulation scams, and it is relevant because it is starting to affect different types of e-commerce platforms, including Amazon. This is a type of scam that can lead to a nasty fraud or debt collection lawsuit, but you can avoid it if you know how triangulation scams work on Amazon.

What is triangulation fraud?

Triangulation fraud is a type of fraud that takes advantage of a type of “flaw” or “crack” in e-commerce. It involves a fraudster posing as a seller on an online store, say Amazon or Mercado Libre, and offering an item at an outrageous price, such as an iPhone 15 for under $300. The scam involves tricking you into buying the item so that the fraudster can later buy it from the legitimate seller at its real price, which is $800, after stealing your credit card information.

The fraudster, who has the buyer’s shipping information, then ships the purchased iPhone 15 to Apple. Later, when the owner of the stolen credit card discovers a purchase he or she did not make, he or she reports the fraud. Typically, the bank investigates, eventually finding one person: the buyer.

Triangulation fraud is typically used by large businesses that have automated sales. This type of fraud is difficult to pull off in small businesses where every sale is controlled by people, but it does not usually happen with very expensive items, where sales are also usually controlled or have some personal control.

How to avoid triangulation fraud?

If you are a buyer, the most important thing is to keep an eye on the prices of the products. If you find a deal that is too good to be true, it is most likely a scam. Also, take into account the price history of the product. Devices like the iPhone or iPad rarely have a noticeable price reduction (usually only when its successor comes along, and the reduction is no more than $100). It is also advisable to pay attention to the names of the sellers and their sales history.

Another important aspect is that triangulation fraud may not actually occur on a known e-commerce page like Amazon or Mercado Libre, but rather on unknown pages that you are led to through social media ads. Always keep an eye on the page you are making a purchase on.

On the other hand, to avoid becoming a victim of credit card fraud, some suggest using a virtual or digital card to make online purchases, limiting the use of a physical card to in-person purchases. The advantage of using a digital or virtual card is that they usually generate dynamic security codes, meaning they change with each purchase and can only be viewed through the card management app.