Definition of Fraud
Fraud can be broadly defined as an intentional act of deceit to obtain an unjust/illegal advantage.
For the purposes of the policy, fraud shall include but is not limited to:
Listed below are the most common types of fraud.
- Fake accounts – Fraudsters creating fake buyer and seller accounts in bulk
- Account takeover – Fraudsters taking over seller accounts to sell non-existent items
- Referral Fraud – Fraudsters sending traffic that appears legitimate to benefit from referral programs, using stolen customer information to fake the volume of traffic
- Promotional Fraud – Setting up fake sellers and buyers to take advantage of a marketplace’s credits system
- Fake Seller Fraud – Fraudsters copying the profile of a legitimate seller
- Closed Loop Fraud – Fraudsters create fake buyers and sellers. The buyers pay using stolen credit cards for nonexistent items or services offered by fake sellers
- Clone fraud – Fraudulent sellers copying a good transaction from a different retailer where they’re selling and use the buyers name/address to double sell items
- Bad Actor Fraud – These are legitimate accounts with real data created to conduct fraud. This may be done by individuals or rings
Scope of Fraud Policy
The Fraud Policy applies to any irregularity, or suspected irregularity, involving employees and where appropriate consultants, users (sellers & buyers), contractors, outside agencies doing business with Lokein or employees of such agencies, and/or any other parties having a business relationship with Lokein.
For the purposes of the policy, the term ‘employee’ includes individuals who work within Lokein such as external consultants, contractors, agency personnel, and staff members.
We take fraud very seriously. In order to keep the community safe for all Lokein users, Lokein team constantly monitors the marketplace for fraudulent items and dishonest buyers/sellers. Our Fraud Policy means that anyone posting counterfeit goods, posting items they do not own, or engaging in any other duplicitous behavior will be immediately banned from lokein. Please exercise good judgment when using the marketplace.