Merchant Fraud

Merchant fraud, also known as merchant-based fraud, refers to fraudulent activities committed by merchants or businesses themselves. It involves deceptive practices aimed at unlawfully obtaining financial gain or exploiting loopholes in payment processes. Merchant fraud can take various forms and negatively impact both consumers and other businesses. For example, a common merchant fraud scheme involves fraudsters creating a fake online store that sells products but never delivers them or delivers a cheaper item in lieu of the higher priced product the customer intended on purchasing.