Online Shopping Fraud Case Study

2214 Words 9 Pages
Online Shopping Fraud

Brad Sutherland 100428350
& Bo Sun 100491949
November 19 2014
Fletcher Lu
BUSI2570U

Overview
Online shopping fraud is a major issue or risk when shopping online. Everyone can buy and sell almost anything over the internet these days. Online shopping makes searching for a product comfortable and easy because a customer can search the company’s website for the desired product from the comfort and privacy of their own home. However since there is no face to face interaction or the customer is not able to physically see or touch the item they have to trust the website they are shopping from. Online shopping fraud exists in many different ways. “Sellers may list a product for a much cheaper than normal
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“Retailers’ revenue lost to online fraud has increased over the past two years to reach an estimated $3.5 million, up 3% from $3.4 billion in 2011 and up $30% from $2.7 billion in 2010.” (Demery) Although these statistics are 2 years old they show that online shopping fraud has been a developing issue and these scams take a lot of money each year. However looking at the fraudulent orders in the grand scheme of everything the rates remain fairly low. “The average percentage of online revenue lost in 2012 was 0.9%.” (Demery) There is a higher overall fraudulent order percentage, this is because the average fraudulent order ticket value dropped 20% from 2011 to 2012. “International online orders have a higher fraud rate, it was found that orders placed outside North America had a 1.6% fraud rate, while e-commerce fraud rate was half that, at 0.8%.”(Demery). There are numerous different scams that are trying to obtain peoples personal information, and some are successful, however overall this data shows that the scams are not all that successful when looking at the big …show more content…
Some of these applications have a request to access all personal data and information in their terms and conditions when the application is downloaded, since most people do not read the terms and conditions the application is granted access and can view your contact list, GPS, and even mobile banking information. When deciding to purchase or download a flashlight application the customer should make sure to read all terms and conditions, they should also look for the size of the file that is being downloaded because it does not take much to just operate a

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