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MARKETPLACE FRAUD

One of Simility's tasks was catching a scam that raised money for fraudulent charities claiming to donate food for earthquake relief.

If Simility can detect fraud as specialized as this,

there’s no limit to what we can do for your company.

What is marketplace fraud? Many of today’s new business models are peer-to-peer marketplaces that directly connect suppliers with customers. These businesses are rapidly transforming the world economy by allowing people to rent out their spare bedrooms, drive passengers to a destination, and raise money for humanitarian relief.

With large numbers of suppliers joining daily, most marketplaces can’t conduct the extensive background checks required to prevent copycat fraud. Fraudsters exploit this weakness by 1) collecting payment from customers with no intention to deliver the good or service and 2) creating fake customer accounts that funnel money from stolen credit cards to their own fraudulent supplier account.

While the monetary losses can be significant, the damage from lost customer confidence can be even more devastating.

Fraudulent suppliers create accounts that appear legitimate to customers by copying other successful supplier’s accounts.  Fortunately, Simility has developed a strategy for stopping this kind of fraud before it can even get started.

SAME, BUT DIFFERENT

Fraudsters know that identical profiles can be found with matching algorithms, so they often tweak the copy and images enough to fool the algorithm while remaining similar enough to the original to fool the end-user.

Fraudsters may be able to change filler words to appear unique, but Simility’s copycat models can distinguish between changes in important and unimportant words.  Fraudulent accounts are often created en masse and they follow patterns undetectable to most human analysts, but Simility’s machine learning engine can detect these patterns.

FRAUD COMES FROM SOMEWHERE

Finding copied profiles from within your marketplace is easier, so fraudsters are heading to similar sites elsewhere on the web to find similar profiles to duplicate. Even so, Simility can still track them down. We search across the web and integrate unconventional data points into our models, such as images and geolocations, focusing on the categories that are most sensitive to fraud.

IDENTIFYING FRAUD BY DEVICE

Marketplace scams that use fraudulent customer accounts to funnel money stolen from credit cards are by nature harder to detect. As the goal in this scam is to fool the fraud filter not the customer, the duplicate customer profiles or accounts don’t need to even be a close match of the original. This makes it more difficult to identify. Fortunately, Simility’s Device Recon can detect when multiple accounts are created from a single device and delete them before they even have a chance to process a single stolen payment. Plus, with our machine-language engine, we can predict the chance a device is associated with a fraudster the second it appears on your website before it creates an account.

Any site with supplier profiles can benefit from utilizing Simility’s marketplace fraud model, especially as it can be customized to catch even the most specialized scams. With its ability to stop fraudsters before the money is transferred, Simility’s powerful marketplace fraud protection is a must have for any company’s fraud fighting toolkit.