Fraud Prevention Tactic #3 - Remove And Then Freeze

Our Options: Take back NFT and  deduct the ill-gotten funds, then freeze fraudulent accounts.

• If fraud is detected, we can and will take back the NFTs if the user has not yet resold the NFTs in the marketplace.
• If the fraudulent user1 has traded (sold) the NFTs already in the marketplace and the purchases by user2 were not fraudulent, we let the transactions go through (do not take back the NFTs) but deduct the original fraudulent amount from the user1's balance. We then freeze the user’s account, and decide what to do with the remaining balance.
• Example Scenario
• A user uses a stolen credit card to purchase a $1000 NFT in the marketplace.
• Then the user sells the NFT in the marketplace for $1200.
• The user’s balance is now $1200.
• Fraud is detected where the user’s initial $1000 CC purchase does not go through.
• Deduct $1000 from the user’s balance.
• Freeze the user’s account. Decide what to do with the remaining $200 in the frozen account’s balance.

If you suspect anything wrong going on with your trading experience, please reach out to our CS Team quickly.