Which two fraud types should a marketplace owner be particularly aware of?

A marketplace owner should be particularly aware of Merchant Fraud and Account Takeover Fraud due to their significant impact on the operation and reputation of the marketplace.

Merchant Fraud entails situations where individuals pose as legitimate sellers but are engaging in fraudulent activities. This could involve the sale of counterfeit goods or non-existent services, ultimately harming the credibility and financial standing of the platform. Marketplaces are often tasked with ensuring trustworthiness, and exposure to merchants engaging in such deceptive practices can result in a loss of customers and increased scrutiny from regulatory bodies.

Account Takeover Fraud relates to the unauthorized access of a legitimate user's account. This could involve a hacker obtaining a user’s credentials and then making fraudulent transactions using the victim's account. For marketplaces, this presents a dual threat; it not only affects the impacted user but also poses a risk to the marketplace’s integrity and operational security. If users perceive that their accounts are not safe, they may abandon the platform altogether, leading to decreased engagement and revenue.

Being vigilant about these fraud types ensures that the marketplace owner can implement appropriate risk management strategies, such as enhanced verification processes and monitoring user behavior, which are essential for maintaining a secure environment for both providers and consumers.