E-commerce Fraud: The Rise of Organized Device Farming in Online Marketplaces

The rise of organized fraud networks targeting online marketplaces has become a significant concern, with tactics reminiscent of previous banking frauds. These groups exploit growth-driven features like cashback offers and return policies, leading to widespread abuse. A recent study highlights the alarming scale of this issue, revealing that many risky devices are linked to multiple accounts, indicating systematic fraud operations. The core of this problem lies in device farming, where multiple devices are used to control numerous accounts, facilitating various forms of exploitation. Understanding these tactics is crucial for enhancing e-commerce security and protecting consumers.

By Narendra Chaudhary May 1, 2026, 12:01 IST

Emerging Threats in Online Marketplaces

Organized fraud networks are increasingly targeting online marketplaces, reminiscent of their previous attacks on banking systems. These coordinated groups are exploiting various features intended to enhance growth, such as return policies, cashback incentives, referral bonuses, and Cash-on-Delivery (CoD) options. A recent analysis by an AI-driven risk assessment platform revealed that marketplace fraud is now highly structured and operates on a large scale.

The study indicated that approximately 1 in 6 devices flagged as risky had over 10 accounts linked to them, suggesting the presence of a 'farm.' This aligns with evidence of extensive automation, where some accounts exhibited over 50 activities within a single hour. The research identified 256 clusters, encompassing around 45,000 accounts across merely 9,000 devices. Promo and referral exploitation remains prevalent, particularly in cities like Delhi, Bengaluru, and Noida, with some platforms noting up to 15 times the usual number of users managing multiple accounts, highlighting how incentive structures can directly affect fraud levels.

Return fraud is also a systematic issue, where criminals order expensive items only to return counterfeit goods, empty boxes, or refuse deliveries entirely. The platform's models can detect these fraudulent patterns early by analyzing device, address, and behavioral signals, often before a return is even initiated.

Understanding Device Farming

At the heart of this e-commerce fraud is the concept of device farming. This involves multiple devices being operated in unison, forming the backbone of these fraudulent networks. It enables fraudsters to manage and control numerous accounts at once, switching between them at speeds unattainable by individual users.

This setup facilitates various forms of abuse. The most apparent misuse involves creating multiple accounts to exploit promotional offers repeatedly. However, the more significant role of device farms is to navigate through vast numbers of accounts to pinpoint those that can be further exploited.

Essentially, these systems 'scan' accounts, rapidly transitioning from one to another to identify those with saved payment methods or linked wallets, which are prime targets for financial fraud. What may seem like simple incentive exploitation often serves as a filtering process to discover accounts that can be monetized. The scale and automation of these operations are evident in the behavioral patterns observed, including significant location anomalies, such as an account logging in from both Gujarat and Bengaluru within a mere 30 minutes, or a single account being active across 70 different locations—behaviors indicative of automated account cycling rather than human activity.