When something is being offered for an unbelievably low price or bundled with other discounted shipping costs and the likes, think twice before you purchase it and ask yourself, what’s the catch?  When something unexpectedly comes to your door, even if it is marked as a gift, do not accept readily. 

You might be helping the perpetuation of crime that has become a headache to the authorities and loss of money to consumers, buyers, and online merchants.

Triangulation is a scam that has led the authorities to several leads and misleads for it involves several victims and an unknown offender. 

Three Points, Three Victims

Like the three points in a triangle, the scam of triangulation involves three victims – the cardholder, the online merchant, and the winning bidder who pays for the item and whose address is used to route the “purchased” goods to the hands of the criminals.

Quite tricky, isn’t it?  This is how it all starts.  The scammer arranges an online auction for a pricey item at specially discounted rates, like jewelry, clothes, electronic gadgets like digicams, and so on, that can be bought from an online store (e.g. Amazon, eBay, etc.).  When the bait is taken by a customer’s and wins in the auction after having placed the highest bid, he will send financial information and payment for the item.  Usually, as per instruction of the scammer, the payment is through a bank wire transfer.  But the scammer, instead of paying the online merchant with this money, uses a cardholder’s credit card information, which he has somehow obtained and which is probably from a previous auction customer, and keeps the money. 

For fear of being traced by the authorities, the scammer will not give his address.  Instead, he will give the bidder’s address. The supply store then sends the goods to this address.  When the cardholder discovers unauthorized charges on his credit card, he initiates a chargeback.  The online store receives it and reports to the police, who in turn will make the investigation on the winning bidder, for it is his address that was supplied by the online store as the buyer of the product.  The poor buyer, who has already shelled out money, will most probably never be able to use his purchase since it will be used as evidence by the police.  He is also now at risk of being suspected by the authorities.  Worse, the financial information he supplied the scammer (e.g. credit card number, etc.) can be used for future scams.   

Now, there can be twists and variations to the scenario just depicted. 

Sometimes, a bidder participates from one online auction company say, eBay, but receives the product marked with Amazon, or vice versa.  No billing information is attached in the product as it is delivered because it is marked as a gift.  Without billing information, tracing it becomes hard. 

Or sometimes and worse, instead of having the product shipped to winning bidder’s address, it is delivered to the rightful owner of the credit card, innocent and unaware that it was indeed his/her card that was used to purchase the product.  The scammer comes in the picture by calling the cardholder, saying a package was mistakenly delivered to his/her home.  The scammer would ask the cardholder if he/she could kindly leave the package outside his/her door to be picked up later.  The cardholder, knowing there’s nothing to be gained or to be lost from such act, would gladly agree. 

This last illustration takes triangulation to a higher level and is often called the “call-tag scam”, referring to the shipping returns method perpetuated by the scammer.  The scammer uses a stolen corporate account at a major shipping company in order to issue a “call tag” so a legitimate shipping company would pick up the package.  The scammer has it delivered to a site near his area.  Usually, the pickup company is different from the one that delivered the package. 

Triangulation, and all its forms, is simply the combination of credit card fraud and theft in the world of e-commerce.

Triangulation Targets

Not only are big online stores have been the favorites of these scammers.  They also target small, specialized e-commerce sites selling tools and appliances like sewing machines, etc. 

As for the cardholder’s information, they got it through any of these means - stolen credit cards, credit card information furnished by their previous victims, and from the information supplied in unsecured online transactions. 

Steering Away from the Triangle

Don’t get yourself muddled in this triangulation scam.  There are simple things you can do to make the most of what the internet community can offer, instead of ending up as a victim. 

First, know what you are getting yourself into.  Understand the rules and regulations of online auction, payment terms, and most importantly, your obligations as the buyer and the obligations of the seller.  This also means you must inquire what happens if a problem occurs.  What if you don’t get the product?  How does the online merchant deal with chargebacks? 

Know whom you are dealing with.  If the seller is a company, check out its website but be wary for there are fraudulent sellers sporting professionally designed websites that can deceive even the careful buyers.  Contact the numbers given in the website to verify its existence.  Better yet, whenever possible and when it comes to expensive transactions, check out its location.  Also, consult the website of the Better Business Bureau to check those in the duly registered list and those that are fraud. 

If, on the other hand, the seller only has an email address, do not divulge confidential information like credit card information, social security number, or driver’s license.  Gather as much as you can about him/her, not the other way around.  Any feedbacks on transactions made with him/her?  If there are about a thousand positive feedbacks versus ten negative ones (e.g. shipping delay and similar shortcomings), then you’re safe.  Furthermore, ask as much like what happens when there’s a problem with the shipping, or are there additional charges?  What if the product delivered is not as described in the auction? 

It takes a substantial amount of vigilance on part of the online merchant and most importantly, on the consumer-buyer in order to help halt this triangulation scam.  Don’t be a victim.  Don’t help the crime.  Being cautiously wise does pays off.