As marketplaces continue to make themselves the epicenter of seller productivity, they’re seeing a simultaneous rise in malicious attacks, prompting the question: how can you maintain global growth while effectively executing fraud prevention?

Given more and more marketplaces are now becoming payment facilitators (payfacs) for their sellers by embedding payments, the level of risk involved has risen exponentially. Becoming payfacs for their sellers, while intuitive and eminently scalable, broadens the scope for malicious attacks in several ways that can result in financial and reputational damage for the marketplace.

For the purpose of this blog, we will focus on marketplaces and how to prevent these attacks from causing significant damage. It’s worth noting that most of the fraud that plagues marketplaces can occur across any multi-sided business facilitating payments. This is particularly true for seller fraud, which we will spotlight in this blog, and how, in a platform environment, malicious users engage in dangerous activity through the guise of genuine sellers.


The risk landscape for marketplaces

The cruel reality is; the more a marketplace grows, the greater the likelihood of fraud from both buyers and sellers. The approachability and accessibility of the model, (which are, ironically, why it’s becoming so popular), are…

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