A Comprehensive Analysis of Nondelivery Fraud at a Major Online Auction Site

Almendra, Vinicius

doi:10.1080/15332861.2012.729469

Cited by 5 publications

(2 citation statements)

References 24 publications

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“…For example, content analysis of complaints that were posted in an online action reputation system found that it is useful for documenting, predicting and reducing fraud (Gregg and Scott, 2006). Reputation, product price, buyer experience, totals occurrences, fraud rate, financial loses and perpetrator revenues are attributes that can impact non-delivery fraud at auction sites (Almendra, 2012). During the bidding period of an active auction, distinct fraud indicators are found to be associated with in-auction schemes (Dong et al, 2009).…”

Section: Ijaim 254mentioning

confidence: 99%

Occurrences of online fraud complaints: 2002 through 2015

Koong

Liu

Qin

et al. 2017

IJAIM

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Purpose The purpose of this paper is to report on the findings and lessons that were learned from the many cases of internet fraud complaints that are gathered by the Federal Trade Commission in the USA. The implications that are contained in the behavior of the complaints and trends identified are critical for addressing all types of online criminal activities in the increasing world of cybercrimes. Design/methodology/approach Data for this paper are extracted from the Consumer Sentinel Network Data Handbook covering a period of 13 years. Using the raw data, the occurrences were plotted and trends (number of cycles, time between cycles, and leading state and lagging states) were identified. Descriptive statistics covering the 13 years were examined and discussed. Using 20002 as the base year, the rate of growth of each of the states were ranked annually and were tested for stability and predictability using non-parametric approaches. Findings The key findings are indigenous to the occurrences of online fraud complaints in the USA. However, as the leading nation with the best database on fraud complaints, the findings are mission critical to fraud prevention across the globe. Specifically, this study found that since 2002, there have been four distinct cycles. Each cycle is clearly noticeable because there is a rapid growth in the number of crime complaints in the beginning half of the period followed by a slowing down period. However, the speed of change from one cycle to the next is steeper and the time gap is faster. While it is true that from the perspective of all the 50 states, the ranks appear to change every year and thus are not stable. However, the majority of the changes are relatively small so their relative positions by rank are still predictable. Originality/value The paper extends existing understanding of online fraud occurrences in the USA. The findings are timely and based on longitudinal data that span over a decade. The four new cycles identified are critical to the body of knowledge. The observed change in time from one cycle to another and its changes from a mathematic to a geometric one are also new. The findings are invaluable to persons working in law enforcement related occupations (auditors, lawyers, forensic experts, among others) and who must deal with the increasing problem of online fraud and cybercrimes.

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Section: Ijaim 254mentioning

confidence: 99%

Occurrences of online fraud complaints: 2002 through 2015

Koong

Liu

Qin

et al. 2017

IJAIM

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“…Systems characteristics is the second major type of research focus examined. Again, in the case of online auction and financial fraud, systems attributes such as reputation, product price, buyer experience, total occurrences, fraud rate, financial losses and perpetrator revenues are found to be factors associated with non-delivery fraud (Almendra, 2012). By documenting and performing a content analysis of the complaints, companies can actually better predict and reduce fraud (Gregg and Scott, 2006.…”

Section: Technical Solutionsmentioning

confidence: 99%

Financial and other frauds in the United States: a panel analysis approach

Bai¹,

Koong

2017

IJAIM

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Purpose The purpose of this paper is to report on the findings and implications associated with the millions of financial and other fraud complaints that are reported to the Federal Trade Commission and published in the Consumer Sentinel Network Data Book each year since 2002. Based on the three dimensions, namely, the number of complaints, growth rates and geographic locations of those crimes, this study found similar as well as unique trends that are new and are critical for addressing the rise of cybercrimes in the USA. The trends and patterns identified may also have implications for addressing cybercrimes in other parts of the world. Design/methodology/approach This research is a cross-sectional time-series study that covers frauds and cybercrimes in the USA from 2002 to 2015. The observed cases included the number of total complaints, complaints categories and payment amount or loss incurred both at the national and state levels. First, aggregate fraud totals, categories, payments and payment methods were analyzed and ranked. Second, state data for fraud categories, payments and filing rate per capita were organized into panel data for analysis, comparison and ranking. This cross-sectional and longitudinal approach of the different dimensions of financial and other frauds generate new rankings and more robust results. Findings The key findings are related to the long-term occurrences and trends of financial and online frauds in the USA. While some general trends are consistent with prior studies, the cross-sectional and longitudinal panel analysis produced some unique results. States that reported the most complaints do not necessarily rank high when examined with their growth per capital or their rates of growth. Their rankings could change dramatically due to other factors. In addition, eight of the top ten crime categories are the same both at the national and state levels, indicating that law enforcement could target the same crime categories. Originality/value The panel data analysis is new (first attempt at using this technique on the data set) and robust because it allows cross-sectional and longitudinally analysis of the various financial and online fraud crimes, in aggregate and by state, for a more comprehensive and comparative examination of the fraud behavioral trends. This research can be viewed as an improvement over earlier studies because the panel analysis identifies what fraud trends, scam types and payment amount exist on the national and state levels. The rate of fraud growth in the respective states provides a better understanding about future development of this problem.

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