The on-line environment has become a fertile ground for fraud schemes of all kinds. You face an immediate problem: how to address schemes that may be taking place using your products and services and managing any resulting liability to you.
All things being equal, companies doing business on-line may not be responsible for fraud committed using their products and services. In most cases, however, all things are not always equal. Factors that might cause you to accrue liability include the level of knowledge you had about the fraud, the fact that your products might be specifically designed, or easily used to commit the fraudulent act, and the amount of revenue you derive from the fraudulent activity.
To help understand the extent of your potential liability, and to track the circumstances that might lead to allegations that underlie that liability, you should take steps to track allegations of fraud, and misuse of your products. Doing so will allow you to effectively spot problems before they become large issues, and proactively address issues that face both your business and your customers. It is typically not a defense to an allegation of third-party responsibility that you turned a “blind-eye” towards matters of which you had been given knowledge. The resources to the right may be of use to you in creating effective strategies.