Triangulation Fraud

Triangulation fraud, also known as card testing fraud, is a type of online scam that involves three parties: a fraudster, a victim, and an innocent third party. The fraud begins when the fraudster poses as a buyer and purchases goods or services from the victim using stolen credit card information. The fraudster then contacts an innocent third party, often an unwitting individual, and convinces them to receive the purchased goods on their behalf.

The innocent third party, or “mule,” is often misled into believing that they are participating in a legitimate transaction or a work-from-home opportunity. The fraudster instructs the mule to forward the purchased goods, usually expensive electronics or gift cards, to another location, typically overseas. By using the mule as an intermediary, the fraudster can distance themselves from the illegal activities, making it difficult for law enforcement agencies to track them down. Triangulation fraud allows fraudsters to exploit the stolen credit card information, receive the purchased goods, and profit from selling these items, while the innocent third party faces potential legal consequences for their involvement.