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Solving the rise of Global e-commerce fraud and chargebacks

The Borderless Marketplace

The ascent of e-commerce platforms such as Shopify, Wix and global giants like Shein have redefined commerce. The traditional concept of buying locally has been replaced with a marketplace without borders, providing consumers more choices and more opportunities for merchants to sell internationally.

But there’s a catch.

A Global Problem: The Rise of Cross-Border Fraud

As commerce has globalized, so has fraud.

  • Typology 1: Buying real goods with stolen cards and re-selling the goods. Today, fraudsters can easily harvest or buy cardholders’ data from the dark web no matter where they live. Then they purchase items from cross-border e-commerce platforms, have them shipped, and resell them on other platforms. They never paid for the goods but profited from their sale.
  • Typology 2: Fake e-commerce stores. Some take this further, setting up fake storefronts on online marketplaces. They then 'purchase' phantom goods using stolen credit cards—the traditional methods of combating e-commerce fraud struggle to keep up with these new, complex scenarios.

The Shortcomings of Traditional Fraud Prevention

Traditional e-commerce fraud prevention relied heavily on databases of shipping addresses and their reputations. However, these databases are falling short in the era of global e-commerce. They are not designed to cope with cross-border transactions or the sophisticated schemes of modern fraudsters.

A Global Solution

So, how can we navigate this ocean of global fraud?

We need -

  1. More data sources: Our unique approach at Sardine hinges on behavior as a "trust anchor." We observe how users interact with their devices — typing, swiping, mouse movements, or phone taps. These patterns create a unique behavioral fingerprint, almost impossible for fraudsters to replicate.
  2. Integrated data sources: We need to combine the data related to merchant and buyer devices, along with 'Know Your Customer' (KYC) and 'Know Your Business' (KYB) identities.
  3. Creating a global database of reputable and non-reputable shipping addresses: We’re doing this through our SardineX data consortium.

SardineX: A Collective Approach to Fraud Prevention

Currently, we're developing SardineX, a platform that allows participating merchants, fintech companies, and other payment providers to share data about fraudulent activities and offenders. Our aim? To prevent them from causing further harm.

We invite you to join us if you're an e-commerce marketplace or a payment processor involved in cross-border e-commerce transactions. By collaborating with Sardine, you can join a community dedicated to combating global e-commerce fraud.


Together, we can navigate these challenging waters and create a safer, more trustworthy e-commerce landscape for all. Reach out today, and join us in making a difference.

With Sardine, you can.

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About the author
Simon Taylor
Head of Strategy and Content