Fraudulent purchases

In this article, we'll provide context for Makers who have questions about how fraudulent purchases are handled on Marketplace.

Tackling Potential Fraud on Elgato Marketplace

Operating a digital Marketplace sometimes opens up situations where you may face a seemingly strange transaction or two. With a bit of guidance, we'll help you navigate and identify instances of potential fraudulent purchases and exactly what you can do about them.

Spotting the Odd Ones Out

In the vibrant world of Elgato Marketplace, most transactions are indeed authentic. But once in a while, an anomaly might pop up. You might see a sudden splurge on high-ticket products, or an unusually large quantity being carted. Or, perhaps, the same buyer returns repeatedly, only to request refunds almost instantly. You may even spot unorthodox email addresses or names. Our payment processor, Stripe is constantly on the lookout for such sneaky exceptions, ensuring the vibrant ecosystem of Elgato transactions remains secure.

If You Stumble Across Suspected Fraud

As a Maker, facing a potential fraudulent issue can be a bit unnerving. But with Elgato, you're not alone. Here's what you can do:

  1. Reach out: We've got a well-equipped team here at Elgato, working behind the scenes, promptly catching and addressing suspicious activities. If something did feel off, don't hesitate to report it via your contact within the official Maker Discord server. Details like the buyer's username, product(s) in question, and reasons for suspicion are super helpful for us to dig deeper.

  2. Privacy Prevails: While it could feel natural to confront the suspected user directly, being respectful, and keeping their info confidential is essential to respect privacy laws and the Elgato community standards.

How does Elgato Prevent Fraud?

Creating an environment that is safe and dependable is a top priority for us. We are dedicated to protecting our Makers and their customers - which is why we've chosen to partner with Stripe for payment processing. Stripe has one of the most comprehensive and respected suite of fraud tools on the market. Here's a peek into how these tools are utilized in Elgato Marketplace to preempt and tackle fraud.

Tapping into Stripe Radar's Power

Stripe Radar is Stripe's answer to fighting fraud with machine learning. Radar's fraud detection models are trained on data across millions of global businesses, enabling it to identify patterns and behaviors indicative of fraud accurately. Here's how we put Radar's power to work:

  1. Machine Learning and Rules: Stripe Radar's machine learning algorithms dynamically adapt as they are exposed to new fraud patterns. Coupled with custom rules set by our team, we’re able to tune the system for Elgato Marketplace's specific needs.

  2. Risk Scoring: Every payment processed through Stripe is assigned a risk score, which indicates the probability of that transaction being fraudulent. Payments with high-risk scores are automatically reviewed and are blocked.

Ensuring Data Security

Data security is a critical aspect of fraud prevention. Stripe is certified to PCI Service Provider Level 1, the highest level of certification available.

Automating Dispute Handling

Stripe also provides tools for handling disputes and chargebacks. If a customer disputes a payment, Stripe automatically collates the relevant transaction data and submits this to the customer’s bank on your behalf.

Harnessing Stripe Sigma for Precise Analysis

Using Stripe Sigma, we can write customizable SQL queries to detect sophisticated fraud patterns specific to Elgato Marketplace. This further aids in proactive monitoring and initiating preventive measures.

Continual Learning and Adaptability

We believe in continually learning and adapting to evolving challenges in the digital commerce space. Regular reviews of fraud trends and the routine tweaking of rules ensure that our fraud prevention measures are adaptable and robust.

While we do everything to shield the Elgato Marketplace from fraudulent transactions, no system can be 100% impervious. It's essential to stay vigilant, adhere to best practices, and report any suspicious activity. Together, we can continue to foster a thriving Marketplace and secure platform.

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