The current trend of online business enables better and faster service for users and makes it more profitable for merchants. On the other side, the Internet has become the most popular platform for fraudsters to commit online fraud with ease. Several solutions have been proposed in the literature to overcome these online frauds. But, complete and efficient way out from this problem is still in research. In this paper, we have proposed online hybrid model (OHM) which extensively prevents the possibilities of online fraud, and further, if any possibility is present, then it detects and fixes this possibility. The OHM approach is proposed exclusively for in-auction, non-delivery/merchandise and identity theft frauds. OHM further is applicable to several other online frauds. We have evaluated the performance of this model and have shown that OHM is a robust and highly effective online fraud prevention and detection approach.