Fraud & security 5 min read

Online Purchase Scams: How Verification of Payee Helps

A bargain on a marketplace, a request to pay by bank transfer, and goods that never arrive — purchase scams are everyday fraud. Verification of Payee adds a name check that exposes a suspect seller before you pay.

By Verification of Payee EU · powered by RoxPay

Online Purchase Scams: How Verification of Payee Helps

Key takeaways

  • Purchase scams are the highest-volume form of APP fraud.
  • Fraudsters push buyers off-platform to pay by bank transfer to a mule account.
  • VoP flags when the seller's account name does not match who you expect.

Purchase scams are deceptively simple: a buyer pays for goods — concert tickets, a phone, a puppy, a car deposit — that never arrive. They are the most common APP fraud by volume because they are easy to run at scale and prey on the desire for a good deal.

The off-platform push

Many scams start on a legitimate marketplace, then move the buyer to a direct bank transfer 'to save fees' or 'because the item will sell fast'. That bank transfer usually lands in a mule account whose name has nothing to do with the seller's profile.

A bank transfer with no buyer protection

Once a buyer is pushed to a direct transfer, marketplace protections fall away. A Verification of Payee name check is one of the few signals left before the money goes.

Where VoP intervenes

  1. 1 Run Verification of Payee when the buyer pays a new payee.
  2. 2 Surface a clear warning if the account name does not match the seller.
  3. 3 Pair the warning with advice to keep payments on protected channels.
  4. 4 Use repeated mismatches to flag mule accounts behind multiple scams.

Protecting everyday payments

RoxPay's Verification of Payee gives PSPs a real-time name check for exactly these everyday transfers, helping buyers spot a fake seller before the money leaves their account.

FAQ

Frequently asked

A scam where a buyer pays by bank transfer for goods that never arrive. It is the highest-volume form of authorised push payment fraud.

VoP checks whether the seller's account name matches who the buyer expects. A mismatch is a warning that the seller may be a fraudster using a mule account.

Direct bank transfers strip away marketplace buyer protection, leaving the payee name check as one of the last available signals.

Help buyers spot fake sellers

Talk to RoxPay about Verification of Payee for everyday consumer transfers.