|
Organised fraud networks are now systematically targeting online marketplaces, with coordinated groups exploiting platform systems at scale, mirroring patterns once seen in banking fraud, according to a new study.
An analysis of 70 million marketplace users by AI- powered risk decisioning platform Bureau, revealed that coordinated groups are now exploiting online systems at a scale similar to the Jamtara banking scams. The report showed that features intended to drive growth, such as return policies, referral incentives, and cash-on-delivery (COD) options, are being misused by structured networks. The report identified that marketplace fraud today operates through highly coordinated clusters. It highlighted that "an average of 1 in 6 risky devices having more than 10+ accounts associated with the same device, which is typically a sign of a 'farm'...At the core of these patterns is device farming." A device farm is where multiple phones are operated together, acting as the operational backbone of these fraud networks. It allows fraudsters to run and control dozens, sometimes hundreds, of accounts simultaneously, switching between them at speeds no individual user can match. In total, the report mapped 256 fraud clusters comprising approximately 45,000 accounts linked to just 9,000 devices. This infrastructure allowed automated scripts to perform high-frequency activities, with some individual accounts recording more than 50 instances of activity within a single hour. Ranjan Reddy, Founder & CEO, Bureau, said, "Promo abuse isn't petty theft. It's industrialized. Fraud has evolved beyond stolen cards into coordinated, cross-platform operations. We have found device farms running thousands of fake accounts simultaneously across multiple platforms. Bureau's network intelligence sees these operations cross-platform because a fraud ring doesn't attack one app at a time." While these farms initially focus on promo and referral abuse, the Bureau report noted that this is often a secondary objective. The primary function involves scanning large volumes of accounts to identify those with saved credit cards or linked digital wallets. These accounts then become high-value targets for direct financial exploitation. The scale of automation is further evidenced by significant location anomalies. The report highlighted instances where a single account logs in from Gujarat and Bengaluru within a 30-minute window. In another case, one account appears active across 70 different locations. Such patterns indicated automated account cycling rather than standard human behavior. As per the report, these activities are particularly concentrated in major hubs including Delhi, Bengaluru, and Noida. Some platforms recorded up to 15 times the typical share of users operating multiple accounts, indicating that incentive structures can directly influence fraud volume. "With 99% of users being genuine, blunt controls hurt growth. Platforms need continuous, device- and network-level intelligence to act on the risky 1% without disrupting the rest." Reddy added. Beyond incentive fraud, the report detailed how return abuse has become systematic. It explaied that fraudsters frequently order high-value items only to return empty packages or counterfeit goods. Although only 0.95 per cent of users exhibited such anomalous behavior, this small group drove a disproportionate amount of platform abuse. Bureau currently uses device and network intelligence to protect nearly 300 million devices across various sectors, including banking, fintech, and gaming, to detect these fraud rings before they can initiate significant financial damage. (ANI)
|
