TITLE: THE IMPACT OF E-FRAUD ON ECOMMERCE TRUST: THE CASE OF EBAY INC.

AOUTHOR: . WALID AHMAD LSC ID : L0030KDSA0610 UWIC ID: ..ST20033048 SUPERVISOR: .... FUNSHO OBILADE DATE: .JANUARY2013

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DECLARATION
It is certified that this thesis is the upshot of my genuine work. All the concepts from other intellectuals have been appropriately referenced and I confess that failure to do these leads to plagiarism. This thesis can be utilized for supplementary research and can also be available in library.

Walid Ahmad

....................................................................
Date: 18/01/2013

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CERTIFICATE OF APPROVAL

We hereby declare that this thesis is from the students own work and effort, and all other sources of information used have been acknowledged. This thesis has been submitted with our approval.

SUPERVISOR NAME SIGNATURE DATE

: .................................... : :

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TABLE OF CONTENTS
Abstract .............................................................................................................................................................................................. viii Acknowledgement ............................................................................................................................................................................ ix List of Figures ...................................................................................................................................................................................... x List of tables ....................................................................................................................................................................................... xii Chapter One ............................................................................................................................................................................................... 1 1.1. Background of the study: ....................................................................................................................................................... 1 1.2. Background of EBay Inc.: ....................................................................................................................................................... 2 1.3. E-Fraud: ......................................................................................................................................................................................... 3 1.4. E-Comerece Trust: .................................................................................................................................................................... 4 1.4. Research Problem: .................................................................................................................................................................... 4 1.5. Rational of choosing the topic: ............................................................................................................................................ 5 1.6. The purpose of undertaking the research Question: ................................................................................................. 5 1.7. The research Aims and Objectives: ................................................................................................................................... 6 1.8. Research Questions: ................................................................................................................................................................. 6 1.9. The Significance of the study................................................................................................................................................ 6 1.10. Road map for the research: ................................................................................................................................................ 7 Chapter Two (literature review) ...................................................................................................................................................... 9 2.1. Introduction: ............................................................................................................................................................................... 9 2.2. Fraud:.............................................................................................................................................................................................. 9 2.3. E-Fraud: ......................................................................................................................................................................................... 9 2.4. Typology of Cyber fraud ...................................................................................................................................................... 10 2.4.1. Identity theft Fraud ...................................................................................................................................................... 10 2.4.2. Phishing Fraud ............................................................................................................................................................... 11 2.4.3. Nigerian or the 419 scam........................................................................................................................................... 11 2.4.4. Lottery scam .................................................................................................................................................................... 11 2.4.5. Credit card scam ............................................................................................................................................................ 11 2.4.6. Ticket scam ...................................................................................................................................................................... 12

v|P a g e 2.4.7. Charity Scam ................................................................................................................................................................. 12 2.4.8. Pyramid scam .............................................................................................................................................................. 12 2.4.9. Dating scam ................................................................................................................................................................... 13 2.4.10. Weight Loss scam.................................................................................................................................................... 13 2.4.11. Government Scam: ................................................................................................................................................. 13 2.5. E-commerce: ............................................................................................................................................................................. 13 2.6. Trust ............................................................................................................................................................................................. 16 2.7. Trust in E-commerce ............................................................................................................................................................ 16 2.7.1. Model of understanding E-commerce Trust ........................................................................................................... 17 Consumer..................................................................................................................................................................................... 18 Vendor ........................................................................................................................................................................................... 18 Referee .......................................................................................................................................................................................... 18 2.8. The Impact Of e-fraud on e-commerce Trust ............................................................................................................ 19 2.9. The Online Auction fraud and EBay Inc. ...................................................................................................................... 20 2.9.1. History of Fraud and EBay Inc. .......................................................................................................................... 21 2.9.2. EBays Historical Fraud Response ......................................................................................................................... 22 2.9.3. The Feedback Policy of EBay Inc. and Trust...................................................................................................... 23 2.9.4. EBay Inc. New Feedback Policy............................................................................................................................... 24 Chapter three (Research methodology) ..................................................................................................................................... 26 3.1. Introduction: ............................................................................................................................................................................ 26 3.2. Research Philosophy: ........................................................................................................................................................... 27 3.2.1. Interpretivism ............................................................................................................................................................. 27 3.2.2. Positivism: ..................................................................................................................................................................... 28 3.2.3. Realism: ........................................................................................................................................................................... 28 3.3. RESEARCH Stragegy .............................................................................................................................................................. 29 3.3.1. Survey Strategy ........................................................................................................................................................... 30 3.3.2. Case Study ...................................................................................................................................................................... 30 3.3.3. Experimental Strategy ............................................................................................................................................ 30 3.3.4. Action research Strategy ....................................................................................................................................... 30 3.4. Research approach: ...................................................................................................................................................... 31 3.4.1. Inductive Reasoning: ............................................................................................................................................... 32

vi | P a g e 3.4.2. Deductive Reasoning ............................................................................................................................................... 32 3.5. Research method ........................................................................................................................................................... 33 3.5.1. Qualitative Research ............................................................................................................................................... 33 3.5.2. Quantitative Research ............................................................................................................................................ 34 3.5.3. Mixed Method .............................................................................................................................................................. 34 3.6. Data Collection Methods ..................................................................................................................................................... 35 3.6.1. PRIMARY data collection methods: ............................................................................................................................ 35 3.6.1.1. Survey ........................................................................................................................................................................... 36 3.6.2. Interviews ...................................................................................................................................................................... 37 3.6.1.3. Focus groups ............................................................................................................................................................ 38 3.6.1.4. Observations ............................................................................................................................................................ 39 3.6.2. Secondary Data Collection .............................................................................................................................................. 39 3.7. Sampling ..................................................................................................................................................................................... 40 3.8. Limitations ................................................................................................................................................................................ 41 3.9. Ethical Consideration ........................................................................................................................................................... 42 3.10. Reliability and Validity ...................................................................................................................................................... 43 Chapter FOUR ........................................................................................................................................................................................ 44 4.0. Introdution ................................................................................................................................................................................ 44 4.1. Inferences drawn from the primary data collected ................................................................................................ 44 4.1.1. Percentage of people using EBay Inc. ............................................................................................................ 45 4.1.2. Percentage of buyer and seller ..................................................................................................................................... 47 4.1.3. Duration of Buying from EBay Inc. ............................................................................................................................. 49 4.1.4. Types of Online Fraud ...................................................................................................................................................... 51 4.1.5. Buying on EBay Inc. is risk free .................................................................................................................................... 53 4.1.6. E-fraud awarness plays a vital role in avoiding online scams ........................................................................ 55 4.1.7. Percentage OF EBAY INC. USERS BECOME victim OF E-fraud ....................................................................... 57 4.1.8. Discussion through Interview ....................................................................................................................................... 58 4.2.0. Inferences drawn from secondary data .................................................................................................................... 59 4.3. Comparison of primary and secondary data .............................................................................................................. 61 4.4. Limitations ................................................................................................................................................................................ 62 Chapter 5: ................................................................................................................................................................................................ 63

vii | P a g e 5.1. 5.2. Introduction ...................................................................................................................................................................... 63 Research Objectives and Conclusion...................................................................................................................... 63

To revisit the previous literature done on the Online fraud ........................................................................ 63 To which extent EBay Inc. user trust the EBay Inc. inc. .................................................................................... 64 To find out which kind of scams do people come across with. .................................................................... 64 To Discuss The Risk Beside Advantages Of Buying From EBay Inc. .......................................................... 65 To Explore Some Useful Techniques Which May Help In Avoiding Internet Crime ........................ 65 To Explore The Attitude Of UK Consumers And Vendors Towards EBay Inc. ..................................... 66 Discusion of research Question ................................................................................................................................................ 66 What Is Fraud And E-Fraud? ............................................................................................................................................ 66 What is trust and e-trust? .................................................................................................................................................. 66 In What Ways E-Fraud Destroy E-Commerce Trust? ......................................................................................... 67 What Are The Types Of Fraud On Internet? ............................................................................................................ 67 To What Extent EBay Inc. Is Trustable Website? ................................................................................................. 68 What Is The Attitude Of UK Customers Toward EBay Inc.? ............................................................................ 68 5.3. 5.4. Recommendations .......................................................................................................................................................... 68 Scope for further research .......................................................................................................................................... 69

References: ........................................................................................................................................................................................ 71 Appendix 1- questionnaire ......................................................................................................................................................... 86 Appendix2-statictical data .......................................................................................................................................................... 90

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ABSTRACT
The main objective of this research was to enable the customers of EBay Inc. and make aware their selves about cyber criminal activities. The centre of this thesis is to review the impression of online fraud on EBay Inc. trust. This study provides an adequate knowledge of the e-fraud in ebusiness world. These frauds behave as obstacle between seller and buyer which looses the reliability of EBay Inc. In this study mixed research method was employed as it provides a better and detail understanding of human attitudes, observations and perceptions for EBay Inc. users. Primary data was collected in order to have data tailored for this research and further more secondary data was gathered from journals and articles to have indepth understanding of the topic. Questionnaires were filled out and many views and opinions were received. After analyzing the data it was concluded that EBay Inc. users must be conscious while buying from EBay Inc. as the e-fraud is intesifying day by day as more and more people are involving in criminal activities. No doubt that the online businesses make the shopping very convenient but the online fraud makes it insecure. Eventually if customers desire to avoid these scams then it is very essential for consumer to get acquainted with different types of frauds and ways to be safe online.

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ACKNOWLEDGEMENT

Read! In the Name of your Lord Who has created (all that exists). He has created man from a clot (a piece of thick coagulated blood). Read! And your Lord is the Most Generous. Who has taught (the writing) by the pen. He has taught man that which he knew not" [Quran, 96: 1-5. In the name of Allah the most Gracious and Merciful. First of all I would like to Thanks Allah , who gave me the confidence and internal wisdom which made me to accomplish such a complicated task through out my life. I really praise him as he worth to be praised. Secondly I am thankful of my generous, kind Supervisor Funsho Obilade whose criticism pushed me towards the perfection of my study. Again I am grateful to him for expending his precious time in accomplishment of my thesis. Thank You! Mom and Dad both of you verily helped me financially and non-financially during the course of my whole studies. You encouraged and remind me that I can do something. Moreover, I cannot forget my Brothers, sisters and brother-in-law priceless endeavor in helping me throughout BA (Hons) course. Last but not the least I am grateful to all those friends who contributed directly or indirectly to bring my thesis to definitive format. Finally, it is more than true that I would not be able to complete the task in defined time regardless of all these assistances.

LIST OF FIGURES
Figure 1 road map of the thesis 1 ........................................................................................................................... 8

Figure 2.1 The level of Trust (thejobbin 1 ............................................................................................................. 16

Figure 2.2 the involvement of three 1 ................................................................................................................. 17

Figure 2.3 The life cycle of trust 1 ........................................................................................................................ 19

Figure 3.1 Research process Onion 1.................................................................................................................... 26

Figure 3.2 Research Philosophy 1 ......................................................................................................................... 27

Figure 3.3 Research Strategy 1 ............................................................................................................................. 29

Figure 3.4. Deduction and Induction appr 1 ......................................................................................................... 31

Figure 3.5 Research Method 1 .............................................................................................................................. 33

Figure 3.6 Data Collection method 1 .................................................................................................................... 35

Figure 3.10 validity and reliability 1 ...................................................................................................................... 43

Figure 4.1.1.a 1 .................................................................................................................................................... 45

Figure 4.1.1.b 1 ..................................................................................................................................................... 46

Figure 4.1.3.a 1 .................................................................................................................................................... 49

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Figure 4.1.3.b 1 ..................................................................................................................................................... 50

Figure 4.1.4.a 1 .................................................................................................................................................... 51

Figure 4.1.4.b 1 .................................................................................................................................................... 52

Figure 4.1.5.a 1 ..................................................................................................................................................... 53

Figure 4.1.5.b 1 .................................................................................................................................................... 54

Figure 4.1.6.a 1 .................................................................................................................................................... 55

Figure 4.1.6.b 1 .................................................................................................................................................... 56

Figure 4.2. Victims of online fraud 1 ..................................................................................................................... 60

Figure 4.2.b Internet Auction Houses. 1 ............................................................................................................... 60

LIST OF TABLES
Table 4.1.2.a. 1..................................................................................................................................................... 47

Table 4.1.2.b 1 ..................................................................................................................................................... 48

Table 4.1.7.a 1 ...................................................................................................................................................... 57

Table 4.1.7.b 1 ..................................................................................................................................................... 58

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CHAPTER ONE
1.1. BACKGROUND OF THE STUDY: Majority of Population accept this fact that internet is the blessing of this century as it give the opportunities to the people which they didnt have before. The dream of globalization became true with the help of internet, people are chatting, doing business and can receive information any time at any place. Internet basically removes the boundary of buying things for customer and selling goods for vendors. With popularity of E-commerce businesses changed the way business is done in cyber world (Gibbs, 2004). Now Businesses understand that by using e-commerce we can minimize our production cost, delivery cost and other operations (Kartiwi, 2006). Hence firms must save their precious time and should be cost effective (Yu, 2007). E-commerce can be used for both internal use and external use by the firm. In external use businesses receive and pay in open network with the help of internet due to its openness different kinds of people can access and can do frauds.(Hawkins, 2000). Therefore vendors and customer can face serious types of frauds if they do not use security systems. These frauds are generally carried out by individuals and can harm a business to a large extent. internet crime is increasing every year . Therefore firms must carry important steps to save their customers from fraud and try to build their trustable image because trust is essential dimension between buyer and seller. The percentage of e-fraud is very high in incorporation who are C2C, B2B and B2C as these types of businesses are highly depend on Internet and their network is very open and can accessed by an one. EBay Inc. is one the foremost example of this kind of Business whose whole transactions are done via internet

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with debit and credit cards. However, EBay Inc. is trying to minimize these kinds of frauds but still these e-frauds damaging its image and consumer trust. 1.2. BACKGROUND OF EBAY INC.: EBay Inc. was founded in San Joes, the third biggest city of California and tenth largest city of the United state of America, on 5 September 1995 (Anon., 2010) by Iranian American software programmer born in Paris called Pierre Omidyar. (Viegas, Jennifer ,2006),The very first product that was sold on EBay Inc. was laser pointer which was broken for $14.83. Omidyar wondered and then he soon contacted the buyer to confirm that did he know that pointer is broken. The reply was positive as he was collector of broken pointers(Aron Hsiao, 2012). Omidyar himself wanted to create an online market place to sell products on Auctions however his fiances interest was to trade Pez candy dispenser to trade with other collector but this story was fabricated just to attract media.(Berkun, 2010). Chris Agarpao was first employee and Jeffery skoll was selected as the president of EBay Inc. in 1996. In 1996 EBay Inc. started selling as an online Auction for selling Plane tickets and other products which are useful to travellers. The growth of the EBay Inc. was soaring rapidly and in one year it hosted about 2000,000 online auctions which were 700% higher than the previous year (Lewis, 2008). This was the time when the company change its existing name that was Auction web to EBay Inc. in 1997.firstly he wanted to registered the company with Echo bay but this name was taken already by Echo bay Mines which was a gold mining company therefore he chose ebay.com (Mullen, 2009). In the same year the company was funded by venture capital about $6.7 million. In 1998 Meg Whitman was appointed as the CEO of EBay Inc. However at that time the company had just 30 employees.(owen, 2008) With 500000 users and had income of $4.7 million in USA. (anonymous, 2008). On 21 of September the company was registered on stock exchange and Omidyar became billionaire. In 2002 the company started acquisition and bought Ibazar which was founded in 1993 in Europe and afterwards bought PayPal in

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October 2002. In the first quarter of 2008 the company was expanded globally and with a billion users and about 15000 plus workers and revenue of $7.7 billion.(anonymous, 2008). After a decade Whitman decided to step in politics. Thus the company announced on January 2008 to change the CEO and appointed john Donahoe as CEO of the company on 31 of march 2008. However Whitman remained on boards of director and regularly advised john Donahoe. In last quarter of 2009 EBay Inc. sold %70 of Skype for $2.75 billion but still own %30 in the company.(wauter, 2009). In july 2010 XPRT Ventures sued EBay Inc. for stealing the confidential information shared by XPRTs inventors and then it was used into the paypal systems.(Stempel, 2010). On 20th of December 2010 EBay Inc. acquire German online shopping club for 150 million and strengthened its position in Europe fashion industry. 1.3. E-FRAUD: Fraud is actually an activity or action of a person who try to get advantage of others in illegal ways (Albrecht, 2009). However there are many research done by famous intellectuals on Efraud for instance (Baker, 1999) ,(Bywell, 2001),(Choo, 2008),(levi, 2008),(Wall, 2008)(Skousen, 2009),in 2010 Internet Crime Complaint Center (IC3, 2010) issue a special report in which there were 336,655 complaints that were received by different organizations in the year 2009. The increment in these complaints was 22.3% higher as compared to previous year. All these complaint were almost same such as auction fraud, e-mail spam and credit card fraud etc. According to (Bywell, 2001) the e-commerce lower the cost of the product and in addition to this customer can compare the prices on internet in easy manner but yet e-fraud is a major threat in doing transaction. Moreover, (Wall, 2008) argues that news will further reinforce the fear to transact via internet. The above information reveals that e-fraud is the main headache of online transaction and because of these incident many consumers can not be motivated towards online shopping because it is not trustable. Anyone can harm you any time while sitting behind the internet with no physical face.

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1.4. E-COMERECE TRUST: In According to (Adeyeye, 2008) e-commerce is the selling and buying of goods and services and receiving payments with the help of information technology and with data management. Anyone can use this service at any time and can do transaction with other party at a place. However the most popular medium of e-commerce is internet with interface of websites. Therefore according to (Aberg, 2002) if the quality of website systems is improved it will increase the sales and satisfaction of the consumer. In other words business transaction succeeds when there is trust in both parties. Therefore trust play a major role while doing business specially in e-commerce It has vital role and must not be under estimated in any case because it develops the satisfaction between buyer and seller (Yousafzai, 2003). Moreover in the opinion of (Mukherjee, 2003) there are many scholars who define trust in relation of some discipline. Trust is essential part of individual personality traits but in case of business it becomes more sensitive especially in e-commerce where there is no physical face of business. In short trust must not be underestimated and should the fore most objective.

1.4. RESEARCH PROBLEM: Some customer trust in online shopping blindly giving there debit and credit card details to any one and anywhere without investigating due to their little knowledge they think that internet is just blessing for them. But the fact is that internet is also full of frauds and crimes. There are many fake websites created by imposters who try to harm innocent people. These frauds are usually done via e-mails and phishing. An embedded script is sent to customer and is asked to click on it; which takes the customer to fake website and come across with fake prices. Apart from this giving credit or debit card details are also not secure in purchasing goods online unless until the website is completely sure to be trustable. EBay Inc. is a trustable business but still there are many frauds take place. There are many fraud vendors

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who open EBay Inc. account in someone else details and harm people online though EBay Inc. has a potential team to look and arrest these fraudulent but still these fraudulents do their job in undetectable ways therefore extra care is necessary while buying and selling products on EBay Inc. 1.5. RATIONAL OF CHOOSING THE TOPIC: The foremost factor which derived the researcher to choose this particular topic for the research is that 4 months back the researcher was trying to start business and all of a sudden he came across with websites which were based on products that were very cheap as compare to its current market prices. However, He contacted with suppliers and has been told that make a payment via western union, PayPal or any other source without giving money gram password, after receiving your product then you have to pay all amount. The researcher was astonished of this blessing service and made him to think. Finally after investigating he knew that these are online scams and frauds programmed to deceive customers. The occurrence of the incident leads the researcher interest to unveil the online frauds and its different ways.

1.6. THE PURPOSE OF UNDERTAKING THE RESEARCH QUESTION: The online shopping is the cry of the day, customers are buying online goods and services without investigation they give their cards details to anyone and anywhere which are being misused. Today in online market Amazon and EBay Inc. are the most popular businesses in e-commerce world with billions of users. Especially in case of EBay Inc. as it has very wide network for everyone but is also attracting scammers to get benefit of the freedom and to deceive people by giving wrong details of their company. In this research EBay Inc. is chosen as Case study to make aware customers that apart from positive image. EBay Inc. is also a potential medium of e-frauds which must be taken in consideration while shopping from EBay Inc.

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1.7. THE RESEARCH AIMS AND OBJECTIVES: The Aim of this study is to enquire about the different types of scams and online auction fraud while doing business or shopping on EBay Inc. and how it damages the EBay Inc. image. The objective of the research is written below in a sequence To revisit the previous literature done the Online fraud and E-trust To which extent EBay Inc. user trust the EBay Inc. To find out which kind of scams do people come across with To discuss risk beside the advantages of buying from EBay Inc. To explore some useful techniques which may help in avoiding internet crime? To explore the attitude of UK consumer and vendors toward EBay

1.8. RESEARCH QUESTIONS: Following are the various research questions are developed to reach the aims and objectives of this research What is fraud and e-fraud? What is trust and e-trust? In what ways e-fraud destroy the e-commerce trust? What are the types of fraud on internet To what extent EBay Inc. is trustable website? What is the attitude of UK customers toward EBay Inc.?

1.9. THE SIGNIFICANCE OF THE STUDY

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The research will be significant endeavor in unveiling the fraud that is taking place behind the blessing internet. This paper deeply classified several ways in which online scammers bring their dishonest intentions in reality which may help the customer to avoid this indecent activity. The researcher also focused on the EBay Inc. feedback system and how it is helpful in detecting e-scammers so on this side scammers are given the opportunity to look before you leap otherwise you will be stuck. Finally primary research is done in which there are different opinions and view of EBay Inc. customers towards EBay Inc. which might be helpful for the EBay Inc. to formulate its strategy according to the customers responses.

1.10. ROAD MAP FOR THE RESEARCH: This section will present the research road map illustrated in figure 1. Chapter 1 is based on introduction of company EBay Inc. that is taken as a case study the research problem is described and then finally aims and objective and research questions are developed for the thesis. Chapter 2 is devoted to revisit the literature done on fraud, e-fraud also trust theories and models and the impact of e-fraud on e-commerce trust. Moreover, a part of literature is devoted to EBay Inc. incorporation in which its fraud history and response analyzed and also the feedback system is discussed. Chapter 3 consists of different methodologies, approaches and techniques that are used in research and we also talked about sampling and data collection methods .

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Chapter 4 is based on statistical analysis using secondary and primary data. Suitable questionnaires are developed to take survey using likert scaling open end questions MCQs and the afterward all results are brought in the form of pie charts and graphs. In Chapter 5 Conclusion of the whole thesis is drawn and future recommendations are developed with the help of reviewing the previous work done on the same subject and statistical analysis

Company Backgroung, Aim and Objectives, Research problem and Research questions etc

Research Methodology

Conclusion and Recommendation

Review of the literature

Data Analysis

Figure 1 road map of the thesis 1

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CHAPTER TWO
2.1. INTRODUCTION:

(LITERATURE REVIEW)

In this chapter researcher revisited the literature done by several authors on E-fraud, trust, etrust and what are the impacts of E-fraud on E-commerce trust. In this section researcher went through different journal and books and tried to approach trust, e-trust and e-fraud with the help of different models and theories presented by scholars. Initially we defined fraud itself and then we proceeded to distinguish between e-crime and e-fraud as many authors take these two terminologies in same sense in next step trust itself is explained and then the impact of e-fraud on e-commerce is deeply analyzed. 2.2. FRAUD: Fraud basically involves actions such as money laundering, bribery, theft, extortion and corruption etc (Acharenborg, 2007). However the legal definition of Fraud is different from one country to another. But from 2006 in England and Wales there is legal definition for fraud Fraud actually includes deceptions to make personal gain in dishonest manner or to make loss for somebody else.

2.3. E-FRAUD: There are numerous definitions for e-fraud in 2001 Graham defines e-fraud as a fraudulent activity that is connected with internet through which someone deceived others to gain advantage. The United States Department of Justice defines electronic fraud as a fraud scheme which involve two or more internet components for instance message board, websites, chat rooms etc to conduct fraudulent transactions and harm other who connect to the same fraud scheme. (Anon., 2003).According to (Gordon, 2006) cyber fraud is an action in which computers or a network of computers are used as a tool to do criminal activity.

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However some definitions about cyber fraud are more precise like cybercrime is computer related activities which could be considered illegitimate by certain people and that can be done through global e-network (Goodman, 2005), The researcher observed that all of the above definitions are same in one way or another for instance we define first Fraud so if someone do this fraud on internet it means that its e-fraud or internet fraud or electronic fraud or cyber fraud etc.

2.4. TYPOLOGY OF CYBER FRAUD There are numerous ways to do fraudulent activities on internet and online fraud is very famous nowadays because there many people who want to earn profit out of thin air and secondly it is circulating in hundred and thousand users of internet. Therefore nowadays there are many ways of doing e-fraud and earning money some of these are described below.

2.4.1. Identity theft Fraud

In this case fraud emails are delivered to individual with which their personal information is obtained and used in different identity thefts. This very terrible scam therefore one should not use his or her personal details anywhere on websites.
(Finch, 2007)..

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2.4.2. Phishing Fraud

This type of scam is very popular now a days in which scammer develop a website which is very similar to real website. This fake website also contain phone number and obtain credit and debit card details from the consumer which is then used for fraudulent activities(Finch, 2007).

2.4.3. Nigerian or the 419 scam

The three digits 419 stand for criminal code for theft in Nigerian law and it is also called Nigerian scam. The scam begins by asking the customer for a small amount of money and in return he will be given a big amount but in fact the customer loose his own money. (Dixon, 2005)

2.4.4. Lottery scam

In lottery scams an email is sent to the individual to inform them that they won a sufficient amount of money. The user of the internet is asked to pay some amount in order to receive hi lottery which is fake (Berg, 2009).

2.4.5. Credit card scam

This kind of fraud is very dangerous in a virus is sent to individual email as soon as that email opened it runs a

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program on the computer through which the scammer obtain the credit and debit card detail. This type of scam is very popular as many people became its victims (Berg, 2009).

2.4.6. Ticket scam

In Ticket fraud cyber criminals print out some fake tickets of musical concerts, big sporting events, Broadway shows etc and then tend to sell these fake tickets through auctions on websites. In this scam there are two types of loss one the individuals who buy these tickets and on the other hand the original ticket of the show cannot be sold because those fake ticket replaced it (Baker, 1999).

2.4.7. Charity Scam

This Fraud is bit funny very opposite to the nature. In this scam a website is created by frauds and they show that the money is gathered for some useful purpose. However, many Generous people give money in huge amount but unfortunately that money is now in the pocket of scammers (Dixon, 2005).

2.4.8. Pyramid scam

In this scam people are asked to join the company and buy any product they are offering and moreover they are asked to keep bring more and more people and he would

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be given commission on motivating and bringing new comer.(Berg, 2009)

2.4.9. Dating scam

This is the most popular ever in the field of Online Fraud and many people are becoming the victims of this scam in massive number. The people get hot and they assume that the person who is chatting really fall in love with him or her but unfortunately that guy is imposter. (McRae, 2007)

2.4.10. Weight Loss scam

As people are concern about their health and diet so this type of online fraud also does work. For the purpose for weight loss fake pills are being sold on the internet which is totally irrelative in helping out the weight problem. Thus a large amount of tablets and capsules promoted and sold and there is no medical cure behind that (King, 2009)

2.4.11. Government Scam:

If someone is urging to give government grant then there is also a chance of e-fraud in it (King, 2009)

2.5. E-COMMERCE: Any type of legal business in which selling and buying is done with the involvement of internet is called E-commerce (Albanese, 2009). In other words a business in which buy and selling of products and services are done electronically is called E-commerce. In the early 90s

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e-commerce started gradually but at the end of 90s it get a lot of attention (Albanese, 2009). There are many local and international entrepreneurs, customers and consumers around the world who are paying attention to internet and wants to do business online some of the most crucial example of online businesses are EBay, Amazon, Yahoo and Dell etc. E-commerce is playing very essential role for both businesses customer and end users in the commercial market (DA Costa, 2003). For example if we look as a consumer it save time in purchasing and similarly for a business one can get many transactions in less time (Kenneth, 2010). Save time is the cry of the day as time is very precious for both consumer and a business. It is known fact that banks make it very easy because in just a single click the bank completes the transaction of money from one account to another (McNally, 2011). The researcher totally agrees with the above statement that the banks are the one who started actually the evolution of e-commerce nowadays we can see that traditional banking is totally changed and is replaced with online modern banking . According to (Rayport, 2003) consumer feel secure while buying online. The researcerh totally disagrees with Rayport statement as we know that all of the online businesses are suffering from Cyber crime and there is not only one way of doing fraud online as we discussed above there are many typology of e-fraud. However, according to (Daniel, 2011) internet is the cheapest way of doing business. One of the most important thing about E-commerce is that it is cost effective which mean that the business owner can directly communicate with the consumer hence there is no middlemen. Ecommerce ease the marketing of a business (Shelly, 2011) and it is replacing the traditional business system. The researcher also support the statement of Shelly that nowadays Ecommerce really made it easy to advertise the business and to know about the customers through different tools like face book, or by sending and receiving e-mails or mobile messaging. If we talk about the HRM it also change it completely flattered the structure of the organization (Tomei, 2008). It replaced the branches system and all of the business is

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controlled by the head office in a sound manner (Ayub, 2007). Moreover one can easily eliminate the cost of maintenance and staff salaries and wages and many other expenses. In E-commerce once a business setups a website it acts like a hub for both consumer and seller. Both can access it from anywhere and anytime there is no need of geographical location.
E-commerce is very effective in case of customer relationship management as one can gain all customer record with the single click of mouse no matter where is he (Bailey, 2006). No doubt this is only e-commerce with the help which one can easily access to consumer behavior and different markets, delivery details and much more. E-commerce makes the business transaction automated (Burton, 2009) some of the applications of E-commerce are e-mails, messaging, extranet and intra-net and e-documentation etc (Cross, 2008). E-commerce totally brought change in

the structure of the organization the HR and in the flow of information that was very slow in typical business(Daniel, 2011). Moreover it opened doors for new entrepreneur as it is now a global Phenomenon any one can start business any time at any place with any amount of money (Fernando, 2011). There are many opportunities for entrepreneurs to demonstrate their credibility. The researcher also has the same view that e-commerce made it possible for everyone to take part in business activities and show their capabilities.

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2.6. TRUST It is very difficult to define the trust because it has been studied in different disciplines for instance psychology, sociology and many others. Sociologist look trust on social perspective they say that trust is a part of social relationship in social systems.(Reina, 2006). However from Psychological point of view trust belongs to individual personality, his thinking, his behavior, human relationships etc(Jarvenpaa & Shaw, 2004). In physiological perspective interpersonal trust is tested through Game theory and communication, motivation and experience were trust determinants. But in business world trust is defined as a belief that vendor must not take advantage of the consumer and consumer also should not gain illegal benefit of the vendor they must have sound relation ship (E.Kim and S. Tadisina, 2005).

Figure 2.1 The level of Trust (thejobbingdoctor.com)

Figure 2.1 The level of Trust (thejobbin 1

2.7. TRUST IN E-COMMERCE It is generally accepted that building trust online is very critical as compare to offline business (Gefen, 2008). For instance there are many people who do not mind to order anything online from unknown business. If something wrong happen they trust the service provider that he will fix the problem. But still we cant compare the offline trust with online. The main reason is that online business does not have a physical appearance they do not have a face (W.T. Hung, 2011) .The researcher does not agree with W.T. Hung first statement that

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many people give their detail to unknown business without any hesitation because e-fraud and credit card fraud is booming day by day and one cannot simply ignore its significance. Consumers are now very clever they now know what is happening in E-business. According to (P. Beatty, 2011) the online transfers are automated and impersonal than normal business. However,(L. Qiu and D. Li, 2008) argue that building trust in B2C is not similar to B2B because in B2C the relations are in short term and with transactions. He also divides the trust in to two categories that are Hard trust which consists of security problems and Soft trust which means quality of the service.(M. Koufaris and W. Hampton-Sosa, 2004). To better understand the trust problem in e-commerce the researcher decide to include two trust models of two different authors which are shown and described below. 2.7.1. MODEL OF UNDERSTANDING E-COMMERCE TRUST In E-commerce Business especially in B2C there are three main parties which have a great role in determining the trust issue. Those parties are. Consumer Vendor Referee

Consumer

Vendor

Referee

Figure 2.2 the involvement of three 1

Figure 2.2 the involvement of three parties in determining trust

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Consumer

It is accepted generally that before engaging with the business the consumer always try to seek trust and then they demand for goods and services. Many people have a good level of experience in offline business but they dont know a bit about online market.(Head, 2002).

Vendor

Vendor is also focusing along the same lines trying to establish trust with customers so as to sell commodities and services. It could be a complete online business or partial business. However those vendors who have physical appearance and online tend to be more trusted as compare to solely online businesses.(Head, 2002).

Referee

Referee is normally a third party which act as watchdog who normally give recommendations on the loyalty of the vendor. However, It could be an individual or any institute etc.(Head, 2002). The Figure below will give us a better idea of trust issue that explain trust life cycle.

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Trust Life Cycle

Trust

Trust

Trust

Trust

Violation

CHAOS

Violation

Violation

Violation

Consumer

Consumer ESTABLISH

Consumer ENHANCE

Consumer MAINTAIN

Consumer

Comparing and Browsing vendors Looking for recommendation

First transfer accomplished successfully Referee Recommendation

The transactions are successful regularly. Referee still recommending

Figure 2.3 The life cycle of trust 1

Figure 2.3 The life cycle of trust in E-commerce 2.8. THE IMPACT OF E-FRAUD ON E-COMMERCE TRUST The trust of consumer in internet environment is very essential because there is a little guarantee of the online business as there are many chances of unethical behaviors for instance unfair Pricing, bad quality and scattering personal information without taking permission (Taleghani, 2011). As the number of online crime increasing the consumer also becomes more active about online vendors. One of the most prevalent cyber crimes is Phishing that is building fake website. the method used in this e-fraud is that a fake URL of trusted websites such as Amazon is sent to individuals which is embedded with fake one when a consumer

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click up on it. It takes it to the fake website where the personal information is being asked and then they use personal details for other purchases purposes. To ensure that the online vendor is true and trustable one must look for the trust certificate that should be displayed on the company website. This certificate is normally given by third party who confirm the authenticity of the web site. This certificate increases the sale as online user especially looking for the seal of third party.(Anon., 2012).

2.9. THE ONLINE AUCTION FRAUD AND EBAY INC. Online fraud is the greatest challenge for the online auction users specifically for the buyers. However, EBay Inc. is the dominant player of the e-auction world with having 100 million products on sale (Consumer Report, 2007).It was found that around 50% of EBay Inc. consumers come across with deception but EBay Inc. claim that only 1 in 10,000 become victim of the scammers (Consumer Report, 2007). According to FBI the number of scams is 100 times more than what is EBay Inc. reporting. This is because that EBay Inc. only counts those frauds which have been reported and majority of the fraud amount is below $25 so therefore victims think it does not worth to claim and arguing for a long time. (Gavish, 2006) According to (VeriSign, 2003) the online fraud transaction in UK is about 5.25% which is second after US. Moreover the (The Internet Crime Center, 2007) reports that it has received over one million complaint about the e-fraud. According to (Mangalindan, 2008) EBay Inc. exempt itself from online auction fraud and won a case which stated that EBay Inc. is acting as third party or venue for the e-auction nothing more than this. Which mean that all vendors are responsible for any type of online fraud they do, Furthermore,(Mangalindan., 2007) argues that because of online fraud EBay Inc. online auction is reduced to a significant level. In spite of the growth of about 26% in first quarter of 2007 The EBay Inc. listing is decreased by 6%. in addition to this EBay Inc. Users soared to 240 million but only 83 million are the active users Because of the decline in growth EBay Inc. decided to alter many elements of

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bidding and add many constraints to avoid the online fraud (Mangalindan., 2007). In Research point of view it is generally accepted that fraud often tend to scare the online auctioneers. However the auction provider can do certain things to avoid fraudulent activities such as to increase the safety and add restrictions to the online bidding. According to the report provided by (Federal Trade Commision, 2006) in overall fraud that we received every year the Online fraud is always top of the list and again in internet fraud 45% belong to Auction fraud (Internet Crime Complain Report, 2006) Moreover the most common complaint is of late shipment, no shipment at all or the quality of the product is not what has been shown on internet and its also reported that the average online loss is about $602 per auction which is too much. (Gavish, 2006) Also arguing about the same phenomenon and based on the 1200 respondent they stated that the figure of the online fraud is double than what is FBI estimate. The research will also support the (Gavish, 2006)statement that FBI is always giving less then what is actually done because FBI wants to encourage the online shopping which is help full for the globalization.

2.9.1. History of Fraud and EBay Inc.

EBay Inc. is claiming for a long time that all online auctions are safe and to a greater extent fraud free. But the users of EBay Inc. have something different to say is that EBay Inc. doesnt have any kind of control over the seller authenticity , the truth of advertisements, and listing etc (EBay Inc. User Agreement 2008). EBay Inc. always recommend and teach several techniques and method to avoid any kind of scam but if someone is wearing suit that reflect any kind of detection then it is not the fault of EBay Inc. The research agrees with the statement because there are 101 ways of doing fraud online so both the EBay Inc. and its users work together to get rid of this vicious circle. The feedback system is the only ally of both the EBay Inc. and its user to build trust and carry on (Jin and Kato 2006). EBay Inc.

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installed more detail rating of the vendors for instance, how much time did the seller took to deliver the product?; Does the product really match with what was being advertised (Mangalindan., 2007) He also reports that EBay Inc. was saying that 1% of vendors are responsible of 35% of negative experiences of buying online. However the most deceptive type of fraud among auction frauds is shill bidding. This occurs when the vendor himself place bids on his product. This practice is very famous but it cant be detected because the person who is preyed upon doesnt know who the bidders are as they perceive that there are real buyers who are placing bids. According to (Nikitkov. Alex and Darlene Bay, 2008) that shill bidding is increasing every year by approximately 15% and it is being reported the least, since it cant be detected. Generally speaking these kinds of scams are more common as compared to wrong quality, late shipment, misrepresenting etc. Initially, EBay Inc. was providing its sellers and buyers with a link so if they come across with any kind of fraud just report it to FTC (federal Trade Commission) but as soon as that hypertext link was removed (Guth Werner, 2007) the level of fraud activities in the list of FTC also decrease which doesnt mean that the level of fraud also decreased.

2.9.2. EBay s Historical Fraud Response

According to Tod Marks (Mangalindan., 2007)EBay Inc. has over 2,000 workforce who are just policing the website. But on the other hand the 6.4 million new uploads per day which is too much and 2,000 employees can not actually answer the complaints for frauds. However on the other hand one recent report shows us that 70% of EBay Inc. users are satisfied with the service. 40% of respondents are thinking that EBays customer support is either poor or not fair. It can be very helpful for the victim to go directly to the seller and only 38% of victims do this. However, according to the study of (Mangalindan., 2007)The very best way to deal with these fraudulent is to report the scams to PayPal which is owned by EBay Inc..

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However, 23% of respondent took their complaint to PayPal and 66% of them were remained succeed (Mangalindan., 2007). EBay Inc. has launched many strategies in order to assist the Buyer from becoming a victim of the scammers provided that they make the transaction through PayPal. The Initial option of PayPal is the dispute Resolution Center. One can get help of this option if the buyer did not get the product or the product is different from what has been advertised (EBay, 2008a). Moreover, if there is another similar dispute than PayPal intervene between buyer and seller and settle the problem. If it does not succeed in resolving the issue than PayPal will give insurance versus fraud which is from $200 to $2000 but the condition is that the buyer bought the product from trustable and qualified vendor (EBay, 2008a)

2.9.3. The Feedback Policy of EBay Inc. and Trust

Trust is very important especially in the online market because there is no physical face. However, EBay Inc. developed it whole business on Trust. Trust can be explained as the Subjective evaluation in business of the seller or a buyer that the buyer and seller will perform a certain transaction with respect to his or her confident anticipation (BA. Sulin and Paul A, 2002). Trust is the evaluative element as buyers really dont know about trustworthiness of the vendor. Therefore EBay Inc. urges both buyer and vendors rely mostly on the feedback policy provided by EBay Inc. Researchers have shown that a positive Feedback might increase the price of the item (i.e., (Dewally Michael, 2006), (Jin, 2006) , (Lucking-Reiley, 2007) and (Resnisck, 2006). It is very easy to understand with decrease of buyer risk the price of the item automatically goes up. Similarly on the other hand negative feedback reduces the auction price of the item. The doubt of the buyer about the quality of product certainly leads to offering low price. Hence both buyer and vendor must provide positive feedback which in turn is going to be helpful for them. There is one more important

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dimension that many seller do not give importance to buyer image and reputation (Dholakia Utpal, 2005) .Feedback works a lot and it is a word of mouth but we dont know the person who is giving this feedback. But unluckily, the EBays Mechanism of Feedback has got some problems from past years. One study show that majority of EBay Inc. users have got an eye for eye feedback (Steiner, 2003). In addition to this According to (Chwelos, 2007) Only 60% of vendors give feedback to their customers. There it is argued that Feedback is not a complete settlement for the trust. Some of the reasons answering why Feedback system is not enough when it comes to trust are described below. Customer usually doesnt know that they are victimized Majority of Buyers always give negative feedback. The vendors despite doing a number of frauds are not kicked off from EBay Inc. Vendor can disguise himself as an honest Sometime a vendor make Shill feedbacks by giving positive feedback in order to create a constructive profile. (Kirsner, 2003) A vendor can go forth and then enter again with new face and identity. The above list is from (Bauerly, 2004) In spite of the above restraints much data and facts can be extracted from text comments. Moreover, According to (Paylou, 2006) the quality and nature of comment may have remarkable effect on price distinction in EBay Inc. bidding.

2.9.4. EBay Inc. New Feedback Policy

In the initial months of 2008, EBay Inc. proclaim a new fee increment, increment in vendors standard and a new policy for feedback(EBay, 2008c).However, According to the CEO of EBay Inc. John Donahue, The augmentation in vendor criterion together with the fresh

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feedback plans is designed to grow the customer safety and gratification (Holahan, 2008).There are about five key dimensions which is added to new Feedback plan in first 2 quarter of 2008 (EBay, 2008c) In the beginning of February, customers and vendors may be capable to get minimum one feedback per week from each other, However, today they effect each others scores only single time, Despite of the transactions between buyers and vendors. Hence this alteration will give courage to both parties. Vendor would not be able to give negative feedback for customers. Those members who failed to respond or unable to deliver or paid the item their negative feedback will be erased. The positive feedback of the vendor will reduce to 12 months basis rather than a whole life. Constraint on when can a person leave a feedback: A customer must wait for three days before he is going to leave any kind of negative feedback with a complete and confidential record. Unlike 3 months, buyers or sellers can give their feedback for only two months. Customer now can repeat the feedback for the vendor (EBay, 2008c)

To conclude the feedback alterations it can be easily understood that everything done was in favor of buyers safety. Despite EBay Inc. has developed a hybrid system for feedback yet it allows the seller to post positive feedback which makes EBay Inc. feedback very different from Amazon. Moreover, new feedback changes removed one of the painful limitations of the EBay Inc. identified by (Bauerly, 2004) which was retaliatory feedback in addition to this sellers have to loose the option of posting negative feedback (Stewar, 2008).

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CHAPTER THREE

(RESEARCH ME THODOLOGY)

3.1. INTRODUCTION: According to (Jansen, 2009) many authors use the term method and methodology in different sense. They think methodology is the overall method of the research and method is several means with which the data is gathered. However, (Mason.j, 2002) argues about the same statement that method is something very different from methodology; he described it as a certain method that can be a part of methodology so methodology is the overall strategy. The researcher also agrees with the above two statement given by the authors as there is a distinction between methodology and method as method comes under methodology. Therefore in this chapter the researcher briefly explained the different research methodologies and the reason for the particular design or approach or philosophy is also described. The chapter is divided in to seven Sections and these are Research philosophy. Research Design. Research approach. Research Method. Data Collection Method. Sampling.

Figure 3.1 Research process Onion

Figure 3.1 Research process Onion 1

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3.2. RESEARCH PHILOSOPHY: Research Philosophy emphasize on philosophical framework and the explaining the behavior and what is perceived by the researcher about particular study. (Saunder, 2006). The research Philosophy can be divided in to three sub categories which are Interpretivism, Positivism and Realism shown in Figure 3.2.

Figure 3.2 Research Philosophy 1

Figure 3.2 Research Philosophy

3.2.1. Interpretivism

Interpretivism aimed of human personal experience and hypothesis about certain phenomenon. Interpretivism looks the nature from different angle and need different feedback from the researchers. (Bryan, 2007) States that the in social sciences the subject matter is very different from the natural sciences. However for social research the study and procedure are different. In this philosophy the researcher must take different patterns while observing the phenomenon which can be use in broad principles (Collins, 2010). Moreover it

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is analyzed that there is not only one reality but it depend upon the individual perceptions (Robson, 2002). The role of the researcher has vital role in Interpretivism because researcher has to observe and analyze the different interpretations that doer relate to the certain phenomenon.(Molder, 2010).

3.2.2. Positivism:

Positivism argue to establish truth about the nature, Positivist argue that knowledge can be quantified and it can be studied in scientific method.(Jupp, 2006). In Positivism it is believed that gathering of data must be take place in social environment and there must be reaction of different people on it(Given, 2008). The principles and methods of the research that are used in Positivism are through observation, survey techniques and experiments and often statistical analysis are employed to test the hypotheses (Clegg S, 2003). The main goal of this research is to generalize the finding to public used for deductive approach. However the positivist and deductive approach argue that hypothesis must be developed first. If it is wrong then it must be rejected and start again from beginning.

3.2.3. Realism:

Realist differentiate between nature and its specific view trying to develop different view of the reality and then evaluate which one is relative considering time and place.(Reige, 2003) Realist researcher says that buyer and seller are two objects that come together but this interaction was in no one imagination. (Gummesson.E, 2008) Says that a firms external environment is often more essential than the internal one. Because the actual decision are made in outside the organization in realism its is believed that some of the observation are true while other not. All research are not complete in one way or another (Johnson, 2010).

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After going through All the three research Philosophies the researcher choose Interpretivism philosophy as it is best matched with the study because the researcher have to observe and analyze different kinds of e-fraud and how it effect the consumer and EBay Inc. in one or other way. As it is written above that the researcher is keen about the feedback of the doers action and its reaction.

3.3. RESEARCH STRAGEGY Research design is basically known as the blueprint of the research which focus on four areas that are which question must study, which kind of data is relevant to the study ,what type of data should be gathered, and finally how the result should be analyze(Ader, 2012). There are many research designs but four are the main research as shown in figure 3.3 depending up on the nature of study

Figure 3.3 Research Strategy 1

Figure 3.3 Research Strategy

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3.3.1. Survey Strategy

In survey design information is gathered from large number of cases using questionnaires (Francis, 2000). In survey design the researcher can also use the data that is already collected for any other purpose. The design could be sub divided in to two categories that

LONGITUDINAL SURVEY

It explains the changes that occur in sample over the span of time.

CROSS SECTIONAL SURVEY :

It takes the sample of target population at one location and time. This is always used in examining particular characteristics of population.

3.3.2. Case Study

This type of design usually include collecting of data from small number of cases . A case study design always gives a deep insight about certain situation and provides large detail about the study.(Gersten, 2006).

3.3.3. Experimental Strategy

In Experimental design the information is collected in the presence of different variations, it may be or may not under the control of the person who is doing experiment. Experimental design is usually used in math, Physics and chemistry.(Bickman, 2009)

3.3.4. Action research Strategy

Action research is actually a type of applied research where the formost aim is how to increase the impact, quality of professional work done(Gall, 2007).

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By Reviewing the above literature explaining different Research Design the Researcher went for the Survey Design as it is best match with study further more in survey cross-sectional is preferred. The reason of choosing this survey design is because the researcher needs to collect information from EBay Inc. user to know about their attitude toward EBay Inc.. So the data may be collected via surveys of EBay Inc. users which include interviews, questionnaires etc.

3.4. Research approach:

Research Approach plays a vital role in the research that the researcher must select the approach to the study for instance is it from general to specific or from specific to general or in other words top down approach or bottom top approach . Scholars found two types of research approaches while conducting a research which inductive approach and deductive approach both are explain in separate heading and also shown in figure 3.4.

Figure 3.4. Deduction and Induction appr 1

Figure 3.4. Deduction and Induction approach

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3.4.1. Inductive Reasoning:

Inductive approach is also known as top-bottom approach that observes and examines ordinary and general logics through many steps to reach particular conclusion (Ericson, 2011). It is associated with quantitative research and positivism philosophy. In inductive reasoning also know as developing a theory. In which the Author collects the data and try to build a theory.

3.4.2. Deductive Reasoning

Deductive reasoning the researcher build a theory and then program a research to examine the theory that is developed.(Hesse-Biber, 2010). Deductive approach is actually a process which is based on conclusion that helps in exploring certain theory it is also know bottom-top approach it associated with qualitative method and Interpretivism which argue that understanding of nature depends individual perceptions and thinking. By reviewing the two approaches for the study the researcher found deductive reasoning to as most appropriate to the study as the researcher deals with individual perceptions about specific behavior and action which will leads to conclusion .for instance the impact of e-fraud of EBay Inc. trust would be examine by surveying and asking questions which will let the researcher to build conclusion and recommendations.

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3.5. Research method In this section we explained briefly the two research methods that are quantitative and qualitative further more we also shown the techniques which is very helpful for understanding. There are basically three types of research that are describe below and shown in figure 3.5

Qualitative Research

Quantitative Research

Mixed Research
Figure 3.5 Research Method 1

Figure 3.5 Research Method

3.5.1. Qualitative Research

(Hartas, 2010) Defined qualitative research that qualitative research is basically a systematic and empirical investigation deeply in to the meaning. Now in this definition we have two words that we need to explain by systematic he want us to know that the research must be ordered and well planned. However by empirical he meant that this kind of investigation is embed in the world of experience.(Denzin, 2008) Argues that qualitative research method include an interpretive approach. The researcher also agrees with

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statement made by author because this type of research observes things in natural settings, and qualitative data produce data in textual forms not in numbers. Qualitative research consist of open ended questionnaires, survey, focus groups, etc which will be explain in detail in Data collection method section.

3.5.2. Quantitative Research

Quantitative research see the world as an object and behave objectively it also try to find tools to measure the relationships among various variables to know and verify their pre determined hypothesis. (Swanson, 2010). Quantitative research produce the data in the form of number and this research goes to Positivist. Positivists believe that there is only one truth and the rest are interpretations.(Guba.E.G.& Lincoln, 2008). The researcher agree with the statement that the true answer is only one that is made by nature but the interpretations are different. The main method use in quantitative research is questionnaire.

3.5.3. Mixed Method

As its name indicates mixed methods is the mixture of both qualitative and quantitative research method (Swanson, 2005). However some writers argue that it is third method of research.(Johnson, 2007). The benefit of mixed research is that it gives wideness and deepness to the research. Both qualitative and quantitative researches have deficiencies but when bring together it cancel the negative effect of each other. For this particular research it is proposed that mixed research will be employed as it will give deepness to the research because we need both qualitative and quantitative methods to know about the percentage and as well as to compare different perceptions of EBay Inc. users.

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3.6. DATA COLLECTION METHODS During the course of research data can be collected in two ways either qualitative or quantitative method (Taket, 2010) For instance qualitative method deal to address how and why type of questions it always employ unstructured type of data collection technique. The questions used in qualitative research are open-ended. It includes in-depth interview, group discussions and focus groups. However, on the other hand quantitative research methods deal with what type of question or Yes or No. Both methods have some weaknesses and strengths therefore researcher prefer to employ mixed research that is the combination of both qualitative and quantitative(Taket, 2010)Mixed method actually gives breadth and depth to the research it covers all questions by answering the questions in more accurate and detail manner (Taket, 2010). Mixed research tend to reduce the weakness and focus on how to increase the strength of the research (Leach, 2009)For mixed research there are some useful techniques that are divided in two primary and secondary data collection methods.

Data collection method

Primary Data
Questionnair es Interview Focus Group Observations

Seconda ry Data

Books

Journals

Websites

Blogs

3.6 Data Collection Figure 3.6 DataFigure Collection method 1

method

3.6.1. PRIMARY DATA COLLECTION METHODS: In primary data the researcher himself gather the data and finding and no one has any type of access before the researcher himself (Smeyers, 2009). Below are some useful techniques

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of collecting primary data.

3.6.1.1. Survey

Survey is considered to be very useful way of collecting data because it gives a wide perspective. In survey, questions can be asked in different ways for instance closed questions ,Open ended questions, scaled questions and multiple choice questions.

Open ended questions: It leaves the answer completely on the respondent for instance a question is being asked in the form of how and why and then the respondent try to complete the answer while taking one minute or two minutes or in written form two or three lines(Denzin.N.K., 2005)

Close ended questions: Close ended questions are always in the form of Yes or not or true or false and the responded is not allowed to say more beyond these words

Multiple choice questions: In Multiple choice questions the respondents are given the opportunity to select the from the given statement or the researcher can make a scale to measure the respondent attitude toward specific action for instance agree ,strongly agreeNo idea , disagree and strongly disagree . Survey can be monitored and controlled electronically there are many ways in which we can conduct surveys these are via e-mail, telephone, or face to face which are described below.

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Internet mail: In this type of survey a mail is written and then spread online through e-mail address the respondents are asked to fill the blanks and send it back it is the easy way of doing survey and less time consuming (Denzin.N.K., 2005).

Telephone survey: Telephone survey is actually quantitative research methodology which involves interviewing the specific potential within target market customer for short time while using telephone. Some websites also do this type of survey for the customer for instance survey monkey who record the survey in researcher voice and then call to the provided phone no provided by researcher.

3.6.2. Interviews

Interview is another quick useful method of gathering data. In this type of collecting data the interviewer should visit at the respondent home or he can interview him in office. Interview can be conducted via internet using video conferencing or face-to-face. Face to face interview is preferable because it is reliable. On the other hand some researchers like interviews over the internet or telephone because its quick so both have their own advantages and disadvantages (Chung PYF, 2008).Interviews by itself can be divided into three sub categories that are
Structure interview Semi-structure interview Unstructured interview

Structure interview:

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In Structured interview the questions are preset by interviewer the respondents read the question word by word with care and the interviewer also expect the respondent to answer in the same context.

Unstructured interview

In this type of interview the interviewer prepares the questionnaires according to respondents understanding, knowledge and belieives but these are not planned before the interview. The interviewer asks the question and leave the respondent to answer in detail and it can also talk about more area.

Semi-structured interview In Semi-Structured interview some questions are prepared while some of the questions are being generate during the interview session. During the course of interview the respondent can bring relative stuff to the answer and there is no restriction on him (Schwandt, 2007).

3.6.1.3. Focus groups

Focus groups are conducted by gathering a small number of target group and they are used to discuss on specific topic(B. Nastasi, 2005). A group discussions is very beneficial in

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exploring the topic deeply, which will provide a vast understanding of the phenomenon and they very help full explain the various beliefs and behaviors.

3.6.1.4. Observations

Observations is in fact to examine the real-time processes with the aim of knowing needs, indentifying challenges and barriers and to enhance practices. Observation incorporate a protocol consist of certain measure of attitude. It is decided that the researcher will use almost all type of primary data techniques as it is mixed research so we need open-ended, close-ended, structure interview, unstructured interview focus groups and observations which will probably give the researcher a better understanding of the research. 3.6.2. SECONDARY DATA COLLECTION
Secondary data as its name determine is a type of data that is already been collected by someone (Zikmund, 2012). This data is very easy to access and cheap as compare to primary data. The sources from which secondary data can be obtained are Websites, Journal, News papers, blogs, press etc. However 4 things must be in mind while collecting secondary data.

Availability and sufficiency

Is the data Available on the sources that are aforementioned such as website , journal, blogs etc if it is available then the next question is the data is sufficient for the research

Relevancy and accuracy

The third step is that if the data is available and sufficient then it must be relevant as it is very necessary to know because research done in UK might be different then research done USA because both have different statistics. The fourth step is which is very important to understand

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that some time research manipulate and change the actual work according to their need so the exact number and figure are changed.

In this study of what are the impacts of internet fraud over the e-commerce trust . The Case of EBay Inc. the researcher proposed to go for Primary data as it is more reliable and appropriate during the course of research because the researcher must interview and take survey of the EBay Inc. customers which will give a deep insight of the problem. However, Secondary data is also collected from journal, websites and articles in order to explore the issue and reach to depth of it.

3.7. SAMPLING The sampling is the process of selecting certain number of people from general public
(Gravetter, 2011). The sampling Techniques can be divided in to two main categories. Probability Non-Probability

PROBABILITY SAMPLING:

As its name indicates it is a statement which explains that something going to occur in future. (Ledwig, 2008). Moreover, it is a branch of mathematics which deals with 0 and 1. Probability could be sub categorized into three types. Simple Random Sampling Systematic Sampling Cluster Sampling

NON PROBABILITY SAMPLING:

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It is techniques in which all section of public have no equal opportunity to sampled secondly researcher cannot make the probability specific that each dimension must in involve as the behavior and trait happen rarely (Pathak, 2008). No probability can be divided in to the following. Quota Convenience Purposive

For this particular research the researcher going to select the simple Random Sampling as we know that every third man or woman is the user of EBay Inc.

3.8. LIMITATIONS The researcher generated many techniques and methodologies in order to collect information because it helpful for desired results. The topic of the research is the impact of internet fraud on e-commerce trust: The Case of EBay Inc. as it is received much attention during last five years. In this section the research willing to discuss some obstacles during the course of the research. Honestly speaking for the research design there were many ways to do it as it the mega plan which demonstrates the overall process of the research (Franck, 2010). This engages the research into a great trouble to choose the best design for decisive result. Secondly the task of interviews was very difficult and very challenging in managing them. To be precise everyone was in rush and it gave a researcher lot of headache in making of the appointments in exact times. However the survey might be accomplished by interviewing both EBay Inc. users and nonusers. The collected data will be analyzed in professional manner under the administration of expert who may deliver the eventual results.

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3.9. ETHICAL CONSIDERATION There is famous paradox Honesty is the best policy which is true and the researcher decided to bring this rule in this study. It is generally accepted that many key phrases that communicates the ethical issues which must take in to account while designing the research that all of the data and results are published honestly. During the course of the research, the researcher has given and will give courtesy for the intellectual property and also will remain respectful to the respondents. The researcher will bring a healthy environment among all the respondents on the basis of racism, gender discrimination which might help in obtain detailed interviews about the Case. Moreover, the researcher also pays respect to the rules and regulations of United Kingdom while doing the research.

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3.10. RELIABILITY AND VALIDITY The reliability of the data plays a vital role in the findings because no one wants false analysis. Therefore data has been analyzed and it is examined several times under similar conditions but the results were almost same and accurate. To obtain desired results and more

Figure 3.10 validity and reliability 1

accurate and sufficient the researcher employed mixed research method apart from that researcher use different techniques to analyze the data such hypothesis is a desired method for the analysis (Kothari, 2008). Reliability is again very essential as validity of the research based on reliability if the findings are not reliable then it is no chance to go forward to check the validity. Validity as we argue above the validity of the data depends on reliability. Therefore the second step after reliability is to check its validity. The validity is checking the accuracy and to satisfy that the instrument I am using for measurement is accurate (Shepard, 2012). The validity should have randomize selection of groups and answer all the questions by accomplishing all the requirements. It can clarify with the help probability by making samples and to analyze it.

Figure 3.10 validity and reliability

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Chapter FOUR
4.0. INTRODUTION

(Data Analysis)

In Chapter four we will analyze the primary data and also secondary data collected. In third chapter the researcher discussed the methodology of collecting of primary data. During the analysis first we will explain the primary data findings and then we will compare it with the secondary data that is already collected by someone else on the same topic. Firstly we would analyze the primary data questionnaires and then we will move to discuss semi structured interviews that are asked from the respondents. Once we have done that our next step will be toward analyzing and comparing our primary data with the secondary data which will eventually complete our analysis.

4.1. INFERENCES DRAWN FROM THE PRIMARY DATA COLLECTED The researcher gathered the data from only 50 respondents by asking questionnaires and also interviewed few people in order to express their view openly which also helped the researcher to understand the phenomenon deeply. The results are published in the form of graphs on the basis of gender and age which will help the viewers to understand the results in easy manner.

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4.1.1. Percentage of people using EBay Inc.

70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Male Female Gender

Gender yes no Male 60.0% 40.0% Female 48.0% 52.0%

Figure 4.1.1.a 1

Figure 4.1.1.a percentage of people using EBay Inc. From the above two graphs the researcher analyzed that in graph 4.1.1.a it is revealed that males used EBay Inc. more than females. The percentage of males is around 58% which means that in every 100 men 58 are using EBay Inc. However in every 100 women there are only 48 women who are using EBay Inc. for online shopping or selling.

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70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Age 16-25 Age 26-35 Age 36-45 Age 36-45 Age 36-45 yes 59.1% 50.0% 66.7% no 40.9% 50.0% 33.3%

Figure 4.1.1.b 1

Figure 4.1.1.b percentage of people using EBay Inc. If we look at the graph 4.1.1.b which is drawn on the basis of age groups it can be clearly seen that the age group between 36 to 45 are using EBay Inc. the most and the second heavy users are the age group from 16 to 25. However on the contrast we can look that people who are 46 and above are not Interested in EBay Inc. and the percentage of non users is nil .To conclude the above two graphs a and b it can be understood that Males are the dominant users then female the reason could the males are more business oriented. Moreover, from the graph b it is obvious that age group of 36 to 45 are the dominant players because it is very simple to understand that this age of group are mature and when they shop they shop they try to browse some offers and want to buy discounted items to save money and then from 16 to 25 are the second dominant because they are just new to online shopping so the first on which

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they click is EBay Inc.. However people who are between 46 and above are not interested. One reason could be that they dont know much about online shopping as they are old generation and prefer to buy things while visiting malls and markets. 4.1.2. PERCENTAGE OF BUYER AND SELLER gender buyer both

male

73.3%

26.7%

female

70.0%

30.0%

Table 4.1.2.a. 1

Table 4.1.2.a. Percentage of Buyers and sellers The researcher collected the data in order to know the number of buyers and seller on EBay Inc. But it is found that there is no buyer and if someone is a seller at the same time he is also buyer which means that there is no one who is just seller and not buyer at the same time. So the above table shows us that percentage of buyers in males is 73.3% and that of females is 70%. However, those males and females who both buy and sell are 26.7% and 30% respectively which indicates that the no of buyers are more than the no of sellers.

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age 16-25 26-35 36-45

buyer 80.0% 69.2% 50.0%

both 20.0% 30.8% 50.0%

Table 4.1.2.b 1

Table 4.1.2.b Percentage of Buyers and sellers The table 4.1.2.b shows the percentage of buyer and seller on the basis of age groups. And the result is more according to nature that the age group 16-25 more buyer and less seller and gradually the percentage increases as people become mature and business minded which is for 26-35 and 36-35 is 30.8% and 50% respectively and on the contrast the percentage of buyers decreases as the age of people growing.

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4.1.3. DURATION OF BUYING FROM EBAY INC.

35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Male Gender less than year 1-2 years 2-3 years 4-5 years 5+ years 28.6% 21.4% 21.4% 14.3% 14.3%
Figure 4.1.3.a 1

Female 16.7% 8.3% 33.3% 25.0% 16.7%

Figure 4.1.3.a Duration of buying from EBay Inc. The researcher gathered the data from the respondents and it is found from figure 4.1.2.a that female are showing loyalty towards EBay Inc. because if we look to duration between 4-5 years it indicates that the percentage of women is 25% as compare to men that is only 14% however in the same way the in duration less than a year males are dominant than female which 28.6% and 16.7% respectively. So it can be conclude that once female chose EBay Inc. for online shopping no matter what happened it remain loyal to it.

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50.0% 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0%

16-25 41.7% 8.3% 16.7% 25.0% 8.3%

26-35 Age 8.3% 16.7% 33.3% 16.7% 25.0%

36-45 0.0% 50.0% 50.0% 0.0% 0.0%

less than year 1-2 years 4-5 years 4-5 years 5+ years

Figure 4.1.3.b 1

Figure 4.1.3.b Duration of buying from EBay Inc. The figure 4.1.2.b shows the duration of joining EBay Inc. on the basis of Age groups which indicates that age group of 16-25 are the new users as soon as they know about online shopping they join EBay Inc. so the figure here 41.7% of new comers which is in age group of 16-25 which means that EBay Inc. must pay attention to younger generation as they could be potential customers and same age group are showing loyalty to EBay Inc. by using it form 4-5 years. More over the age group of 36-45 are showing 50% of people shopping on EBay Inc. from 2-3 years but here there is a limitation because the researcher has only few respondents in this age of group so the survey cannot be that much accurate.

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4.1.4. TYPES OF ONLINE FRAUD

30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% male gender female

gender phishing fraud identy theft fraud Credit card Fraud virus and spyware fraud auction fraud male 20.3% 23.2% 24.6% 23.2% 8.7% female 20.9% 23.3% 27.9% 23.3% 4.7%

Figure 4.1.4.a 1

Figure 4.1.4.a Types of EBay Inc. fraud From the above two charts the researcher revealed from figure 4.1.4.a that credit card fraud is the most famous scam when it comes to online shopping. However female percentage in the awareness of credit card fraud is more than male which is 27.9% and 24.6% respectively. Moreover, the second famous fraud is phishing fraud which is a practice of making fake websites or sending fake links to the customer when customer click on the link it takes him/her to fake website which is in case of EBay Inc. there are fake links of PayPal which asks about verification of credit card details and then they use these details for online purchases. However, the auction fraud is not popular in both males and females and having

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the percentages of 8.7% and 4.7% respectively because no one can detect it one type of auction fraud is shill bidding in which the seller is bidding on his/her own item thats why one cant knows that who is bidding behind the internet.

40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 36-45 46-55 age 55+

phishing fraud identy theft fraud Credit card fraud virus and spyware fraud auction fraud

36-45 20.8% 22.6% 28.3% 22.6% 5.7%

age 46-55 22.0% 22.0% 24.0% 22.0% 10.0%

55+ 0.0% 40.0% 20.0% 40.0% 0.0%

25.0% 25.0% 25.0% 25.0% 0.0%

0.0% 0.0% 0.0% 0.0% 0.0%

Figure 4.1.4.b 1

Figure 4.1.4.b Types of EBay Inc. fraud The figure 4.1.4.b shows the awareness of online fraud on the basis of age groups which indicates that in age group of 16-25 the most famous Credit card fraud and then Identity fraud by having percentage of 28.3% and 22.6% respectively. But again rare users know about auction fraud. Further more in age group of 26-35 the famous two frauds are again first credit card fraud and then identity and phishing with percentage of 24%, 22% and 22% respectively. But if we look to age group 36-45 40% of EBay Inc. customers know about

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virus and spy ware fraud and identity fraud. Spyware fraud is by sending viruses into victims computer then the whole credit card details can be obtain by hijacking his/her all system. 4.1.5. BUYING ON EBAY INC. IS RISK FREE

50.0% 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Male Gender Female

Gender Strongly Agree Agree neutral disagree strongly disagree Male 10.0% 25.0% 30.0% 30.0% 5.0% Female 10.5% 5.3% 36.8% 47.4% 0.0%

Figure 4.1.5.a 1

Figure 4.1.5.a. Buying on EBay Inc. is Risk free. After collecting the data from respondents its is noted from chart 4.1.5.a that majority of males and females are disagree that EBay Inc. is risk free which means that they dont trust EBay Inc.. However, the percentage of females is 47.4% where as males are 30% which indicates that females are more like to be victim of fraudulent activities as compared to

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males. Moreover, 30 percent of males and 36.8% of females didnt say anything about the EBay Inc. security they remained neutral.

100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 16-25 26-35 36-45 Age

46-55

56+

Strongly Agree Agree neutral disagree strongly disagree

16-25 0.0% 26.3% 26.3% 42.1% 5.3%

26-35 25.0% 6.3% 43.8% 25.0% 0.0%

Age 36-45 0.0% 0.0% 33.3% 66.7% 0.0%

46-55 0.0% 0.0% 0.0% 100.0% 0.0%

56+ 0.0% 0.0% 0.0% 0.0% 0.0%

Figure 4.1.5.b 1

Figure 4.1.5.b buying from EBay Inc. is risk free On the other hand if we considered chart 4.1.5.b which is on age group basis it is noted that 66% of the age group 36-45 do not feel safe while shopping on EBay Inc. is safe and then 42.1% of age group disagree that EBay Inc. is risk free. However 26.3%,43.8% and 33.3% of age groups 16-25, 26-35, 36-45 has neutral response for this question respectively.

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4.1.6. E-FRAUD AWARNESS PLAYS A VITAL ROLE IN AVOIDING ONLINE SCAMS

45.0% 40.0% 35.0% Axis Title 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Male Gender Female

Gender strongly agree agree neutral disagree strongly disafree Male 45.0% 45.0% 5.0% 5.0% 0.0% Female 31.6% 36.8% 26.3% 5.3% 0.0%

Figure 4.1.6.a 1

Figure 4.1.6.a E-fraud awareness plays a vital role in avoiding online scams From the above chart it is very much clear that in order to avoid the online scam one must study this subject very deeply because now a days e-fraud is more dangerous than any ordinary fraud. Specially in case of EBay Inc. if we read the feedbacks of the consumers then we can understand that there are many undetectable ways of online fraud therefore every individual must pay attention to online crime awareness in order to reduce the number of

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people becoming victims. The figure we got from people about the role of individual awareness of these fraud is helpful is 45% of males strongly agree and 45% are just agree and on the other hand females also recommend that everyone must give attention to this subject and their percentage is 31.6% strongly agree and 36.8% agree. So it is moreclear now that everyone must
100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 16-25 26-35 Age 36-45

know

what

is

cyber

fraud

and

how

it

works.

Axis Title

46-55

Age strongly agree agree neutral disagree strongly disafree 16-25 42.1% 31.6% 21.1% 5.3% 0.0% 26-35 37.5% 50.0% 12.5% 0.0% 0.0% 36-45 33.3% 33.3% 0.0% 33.3% 0.0% 46-55 0.0% 100.0% 0.0% 0.0% 0.0%

Figure 4.1.6.b 1

Figure 4.1.6.b E-fraud awareness plays a vital role in avoiding online scams The same data is collected on the basis of age group and it is now understood that majority of people agree with the fact that individual awareness of cybercrime play critical role in order to avoid the fraudulent activities. The highest figure we got is 100% of age group 46-55 agrees that it is best way to avoid cyber crime. And then rest of results also stands out that majority of people strongly agree and agree with this advice.

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4.1.7. PERCENTAGE OF EBAY INC. USERS BECOME VICTIM OF EFRAUD

Gender

yes

no

Male

5.0%

95.0%

Female

5.3%

94.7%

Table 4.1.7.a 1

Table 4.1.7.a percentage of EBay Inc. users become victim of e-fraud From the above collected data the researcher reached to the conclusion that yet is not safe. However the number of users became victims of fraud are rare. The Table 4.1.7.a. shows us that only around 5% of users became victim of fraud but the 95% of both males and females didnt face any kind of fraudulent activities if they are being targeted it could be possible that EBay Inc. security system help them out.

Age 16-25 26-35 36-45

yes 0.0% 6.3% 33.3%

no 100.0% 93.8% 66.7%

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46-55
Table 4.1.7.b 1

0.0%

100.0%

Table 4.1.7.b percentage of EBay Inc. users become victim of e-fraud

From the above information it is clear that the age group of 16-25 are never been deceived which indicates and true that this age of people know more about the use of internet despite of their carelessness. However the age group 46-55 also shows 100% result because they are more careful in buying and good in bargaining. The second age group is 26-35 and third is 36-45 with having a percentage of 93.8% and 66.7% respectively.

4.1.8. DISCUSSION THROUGH INTERVIEW The researcher stepped forward to gather data from the respondents via open ended questionnaires and interviews. In interview is the fundamental tool for the collection of primary data which is employed to gather the information by interviewing people by asking totally unstructured questionnaires. In addition interview is very important because in some circumstances there are some factors which cant be address during questionnaires.

What makes you to shop on EBay Inc.? Majority of respondents stated that its user interface is very friendly and convenience and offering a variety of products which makes it different from the rest of the online market place. IS EBay Inc. more secure for online shopping than any other online place?

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Again majority of respondents gave positive response that as compare to rest it is considered to be the safest online market. Which kind of fraud you think is undetectable on EBay Inc.? It is evident from the above analysis that rare people knows about auction fraud because it is undetectable and during interview the respondents answers matches with result drawn from the analysis no 4 so the auction is undetectable on EBay Inc.. What advice would you give to EBay Inc. in order to makes it more secure? Around 60% of the respondent argue that they have to enhance the strictness of the feedback system. However rest of the user replied that there must be a special force that must control and arrest frauds. What is the biggest risk of buying from EBay Inc.? Majority answered that non delivery is the biggest risk on EBay Inc.

4.2.0. INFERENCES DRAWN FROM SECONDARY DATA Collecting data from sources like internet and new, columns etc is called Secondary data (Berkowitz, 2010). Secondary data is easily available as compare to primary data and moreover it is considered to be economical but already gathered by someone else(Ember, 2009). The researcher gathered the secondary data and then compared with the primary findings. (Dolan, 2004) Collected the data from the respondent and find out following results.

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Figure 4.2. Victims of online fraud 1

Figure 4.2. Victims of online fraud He found that out of every 100 users 67 replied that non-delivery is the main threat of

buying from EBay Inc. and then product quality which is answered by 24 out to every 100. However again the shill bidding has less score as no one can detect this fraud so victims assume that they didnt become victims of the crime. Moreover he then started collecting data for the consumer behavior toward different online auction houses found results which are shown in figure 4.2.b

Figure 4.2.b Internet Auction Houses. 1

Figure 4.2.b Internet Auction Houses.

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It is indicated that 73% of people using EBay Inc. for when they want to shop online where as only 4.1% goes Amazon and 12.2% to yahoo and so on which means as compare to rest EBay Inc. is the safest place for shopping online. According to (Gantz, 2006) EBay Inc. must not only focus on identity theft but it must look out for fake items listing. Therefore in 2006 (Gantz, 2006) start investigation of the pirated software and eventually found that 50% of all the Microsoft software that was sold on EBay Inc. were illegitimate. From this study it is clear that fake items listing and bad quality is also one of the major fraud on EBay Inc. According to (Shah, 2010) there are many scammers who are selling fake apple iPad for $100. Those devices would look like iPad but the inside functions were of android. According to (Nickson, 2012) phishing shopping is widespread scam while shopping on EBay Inc. He stated that in 2004 there was one teenager who was sentenced of targeting about 100 people for over 45,000 by sending fake links to customers.

4.3. COMPARISON OF PRIMARY AND SECONDARY DATA After looking on the secondary data the next step is to compare the results of primary data with secondary data which shows the similarity between primary findings and secondary data. According to (Dolan, 2004) report the biggest threat in EBay Inc. fraud is non-delivery with figure of 67.3% and during the interview the researcher found that the majority of the respondents have the same threat. Moreover, according to (Dolan, 2004) respondents that among different online markets they prefer EBay Inc. to be the safest place to shop online and the researcher respondents also agree to 95% that this is the safest place to shop online. Furthermore, when we looked at phishing fraud the answers are matched again so it is clear that the researcher primary findings are supported by other secondary findings.

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4.4. LIMITATIONS For data analysis and primary findings the researcher gathered the data from 50 respondents from ordinary public by asking questionnaires and interview. All the defendants are without age, gender and occupation discriminations. Moreover, both buyers and sellers were asked questions because both can face the online fraud. Moreover, some informal questions are asked in semi-structured interview as it was not pre planned. However, the age group of 45 and above was very difficult for the researcher to ask question but finally it was sorted out. Secondary data was also gathered from unbiased sources which support the reliability of primary findings which eventually may help out the researcher in conclusion and recommendations.

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Chapter 5:
5.1. INTRODUCTION

Conclusion and recommendation

After finishing chapter 4 in which the researcher gathered the data from secondary and primary sources and then compared the findings to measure the accuracy and reliability of the results. This chapter is to discuss the objectives of the study and illustrate them in conclusions moreover; the research will also talk about the findings while concluding the thoughts and finally will provide some recommendations at the end of this study.

5.2.

RESEARCH OBJECTIVES AND CONCLUSION

In this modern age, it is known fact the e-commerce is serving people with great facilities by offering effortless functions. Moreover, Internet business provided huge and new opportunities for vendors and customer. The e-fraud done by cyber criminals effect the use of online buying and selling activities which reduces and demotivates the online shoppers. EBay Inc. is market leader when it comes to online business without any doubt EBay Inc. is safest place on the face of the earth for online shopping but still no one is perfect mean there are some chances of deceived on EBay Inc. majority of the objectives of this thesis revolve around the EBay Inc.. Hence researcher concludes the thoughts based on research objectives. The objectives of the thesis are as follow.

To revisit the previous literature done on the Online fraud

The researcher revisit the previous literature and it is analyzed that there are many types of fraud exits in the surrounding environment in other words there are 101 ways of deceiving people online some on the main frauds are Phishing fraud, Identity theft, credit card fraud, 419 or Nigerian fraud, weight loss fraud, ticket fraud and government fraud etc (Tehan,

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2008). All these fraud one by explained and with the help of previous literature trust is defined and described the importance of trust in online business. Furthermore, EBay Inc. fraud history is visited. How many consumers are deceived and what was the response of EBay Inc. and how new Feedback policy played a vital role in minimizing the fraud level.

To which extent EBay Inc. user trust the EBay Inc. inc.

EBay Inc. Inc is online business and give opportunity to both buyers and sellers to buy and sell online while using EBay Inc. interface so it is basically hosting and acting as a third party for buyers and seller. However, it is accepted that cyber crime is now very active when it comes to online business therefore cyber criminal is also trying to target the EBay Inc. to deceive users in order to get financial or non-financial advantage and these fraudulent activities happen very rarely because of the security system of the EBay Inc.. When

researcher asked question from the respondents that is EBay Inc. risk free the majority of the user respond was positive and again it was found that only 5% of users came across with fraudulent activities and moreover according to (Dolan, 2004) report it was clear that about 73.5% of people believe that EBay Inc. is the safest place to buy as compare to rest of online markets.

To find out which kind of scams do people come across with.

As we discussed above that there are 101 ways of scamming online. Similarly in EBay Inc. there are many kinds of frauds exist for instance, phishing fraud, Auction fraud, identity fraud, fake listing fraud and non-delivery fraud. The researcher asked this question from the users of EBay Inc. and he found that the most dangerous fraud while shopping on EBay Inc. is non-delivery fraud this question is asked during interview. However, the most undetectable fraud is auction fraud which is also explained in Literature review, Moreover, the second most famous and repeated fraud is phishing fraud and then identity theft both of these fraud

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have the same purpose of stealing credit card details and then using it for further online purchases.

To Discuss The Risk Beside Advantages Of Buying From EBay Inc.

It is generally accepted that invention despite of its advantages have some demerits so when it comes to EBay Inc. we can say that no doubt EBay Inc. is a blessing place for online business but still there are many dishonest peoples who use EBay Inc. for their personal gain. In survey the researcher asked many questions in favor of EBay Inc. and it was found that the majority of users have positive views about EBay Inc. and their first choice for online shopping is EBay Inc. however on the hand it is also noted that users feel threat of nondelivery, phishing fraud and identity theft while shopping. Therefore if we say that EBay Inc. is entirely risk free from fraud then it will be biased statement despite of knowing widespread e-fraud.

To Explore Some Useful Techniques Which May Help In Avoiding Internet Crime Everyone have different point of views and from interview and open ended question the researcher analyzed that majority of customers is arguing that EBay Inc. must stricken it buying and selling policies by enquiring more into their personal information. Secondly majority of the users recommended the individual awareness of e-fraud plays vital role in avoiding internet crime if every online shoppers know what are the potential threats of buying online then it could help him/her in avoiding many kinds of scams. Some of the users respond that the feedback policy must edit with new useful feature and also vendors must be allowed to give their feedback and much more. By gathering data from the users the researcher accepted these advices and recommendation to be the solutions for EBay Inc. to reduce the online fraud.

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To Explore The Attitude Of UK Consumers And Vendors Towards EBay Inc.

If we conclude the primary findings from both consumers and vendors it is obvious that EBay Inc. UK users have positive prospects from EBay Inc. However rare of users have some complaints. The researcher findings show that 95% of users are not being victim of EBay Inc. and (Dolan, 2004) reports that 73.5% of people prefer EBay Inc. for their online shopping which determine that they have a good notion about EBay Inc..

DISCUSION OF RESEARCH QUESTION After discussing the research objective this thesis will discuss the research questions and will answer all these questions one by one.

What Is Fraud And E-Fraud?

Fraud is actually phenomenon which involves actions for instance money laundering, bribery, theft, extortion and corruption. However in other words a deception in which the intention is make personal gain in dishonest way is called fraud. Furthermore, when it comes to E-fraud it is defined as a fraudulent activity in which one person deceives other for his/her personal gain via internet. One other definition of E-fraud is an action in which network of computers or a single computer is used for cyber crime.

What is trust and e-trust?

It is very difficult to define the trust because it has been studied in different disciplines for instance psychology, sociology and many others. Sociologist look trust on social perspective they say that trust is a part of social relationship in social systems. However from Psychological point of view trust belongs to individual personality, his thinking, his behavior, human relationships etc. In physiological perspective interpersonal trust is tested through Game theory and communication, motivation and experience were trust determinants. But in

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business world trust is defined as a belief that vendor must not take advantage of the consumer and consumer also should not gain illegal benefit of the vendor they must have sound relation ship It is generally accepted that building trust online is very critical as compared to offline business For instance there are many people who do not mind to order anything online from unknown business. If something wrong happen they trust the service provider that he will fix the problem. But still we cant compare the offline trust with online. The main reason is that online business does not have a physical appearance they do not have a face. So it can defined as the positive belief in the buyer and seller relationship that both will not harm each other while doing business online is called e-trusty

In What Ways E-Fraud Destroy E-Commerce Trust?

From the above study it is evident that there are many ways of doing online fraud. Beside it is proved from the finding that the level of online fraud decreases the sale of the company as people do not feel safe while shopping. There is famous paradox that trust is like a mirror. Once its broken you can never look at it the same again In case of EBay Inc. it means that if any user is being made a victim once he can never feel safe anymore.

What Are The Types Of Fraud On Internet?

There are 101 ways of doing frauds online some of the fraud methods are listed below Identity theft fraud Phishing fraud Nigerian or 419 fraud Lottery fraud Credit Card fraud Ticket fraud Charity fraud Pyramid fraud Dating Fraud Weight Loss fraud

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Government Fraud

All of the above listed fraud are explained in chapter two.

To What Extent EBay Inc. Is Trustable Website?

It more evident from the researcher findings that his survey shows that only 5% of user became a victim of online fraud and rest are enjoying service without any complaint more over in (Dolan, 2004) report the percentage of people who love EBay Inc. to shop is 73.5% which further reinforce the researchers findings which leads to consequences that EBay Inc. is trustable website as compared to rest online businesses.

What Is The Attitude Of UK Customers Toward EBay Inc.?

EBay Inc. is trustable website and every customer wants to buy from secure place. Despite the fact the there is vast online fraud on internet and EBay Inc. the customer still have positives views toward EBay Inc. remained loyal throughout the history.

5.3.

RECOMMENDATIONS

According to (Mangalindan., 2007) only 1% of sellers are accounted for 35% of negative feedback. This pain full statistic shows failure to eliminate the worst sellers. If we look into the history EBay Inc. always did very little about the fraud sellers who defrauding buyers. There are few recommendations that might help EBay Inc. in reducing the users dissatisfaction. They must introduce a policy in which there is a quick suspension of sellers who continuously doing fraud and showing poor performance. If the vendors fraudulent activities he must be kick out permanently. indulge in

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Must try to restrain the entry of bad sellers and if the sellers is suspicious his all details must be verified two times if there is little doubt then there must no space for to join EBay Inc. at all whether as a buyer or seller. EBay Inc. must also check their proof of address and list the sellers detail information so that the buyer can post the cash to his/her address and can satisfy him/herself that the seller has physical face as well. As we found out from our data analysis the individual fraud awareness plays a vital role in eliminating online crime. Therefore, buyer must be provided education in excellent manner to restrict the sellers from their evil intentions. Community must be involved to decrease the crime level and at the same time prevent fraud by committing more internal resources. Good sellers must be motivated continuously. Giving allowance to the vendors who gain top rating in their selling and communication with buyers give ranking to the top sellers will be valuable and remarkable improvement in EBay Inc.s feedback system. Get help from honest sellers to identify and eliminate the fraud sellers. Honest sellers are also harmed when EBay Inc. allow the fraudulent ones. This is fact that sellers have more knowledge about the classification of merchandises with prices and qualities so only they can identify who are fake and fraudulent sellers and who are not. EBay Inc. requires honest sellers as their allies, however, once EBay Inc. receive sellers advice they must act and moreover once they identify that these are honest sellers they must not annoy them because they can be a potential enemy after experiencing injustice. 5.4. SCOPE FOR FURTHER RESEARCH

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The researcher enquires all the facets of online fraud and fraud in EBay Inc. The data is collected from both buyers and seller to know how they look EBay Inc. and which fraud types are more frequent. Furthermore, what could be best ways of minimizing online fraud on EBay Inc. However there is much room for further research. The researcher can also search on auction fraud types of auction fraud how it can be detected as many of researcher respondents have no idea about auction fraud despite its dominant existence.

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APPENDIX 1- QUESTIONNAIRE

All information collected will remain private and confidential which will only be used for research purposes. As it is the requirement for completion of BA (Hons) Business and management degree. 1. Name (Optional)

Please select only one answer from the following asking Male 1. How old are you? a) b) c) d) e) 16-25 26-35 36-45 46-55 56 and above Female

2. What is the level of your Income ( Disposable or not) a. 1000 - 1500 b. 1500 - 2000 c. 2000 - 2500 d. 2500 - 3000 e. Above 3000 3. Level of education:
b) c. Postgraduate c. Secondary education

c) d. Undergraduate d. Primary education

Q 1:Do you Buy and sell products Via EBay Inc

a) Yes b) No

(If yes Please continue)

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Q 2: Are you a buyer or a seller?

If seller please jump to question no If buyer please start form question no If both please answer all questions (if applicable)

Q 3: When did you start your business On EBay Month......................? Year....................... Q 4: What type of transaction do you prefer mostly?
Cash PayPal specify.) any other (please

Q 5: What kinds of fraud are you expecting when you are accepting online payment?
1. Theft credit card 2. Lack of customer trust 3. Signatures 4. Ineligibility of credit card holder 5. Internet unsecured websites 6. Others please specify: _________

Q 6: How many customers do payment via credit cards online in a month approximately?
1. 0-10 times 2. 10-20 times 3. 20-30 times 4. 30-40 times 5. above 40 times

Q 7: How long have you been buying from EBay?

a) Less than a year

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b) c) d) e)

1 to 2 years 2 to 3 years 4 to 5 years More than 5 years

Q 8: How much do you spend on buying products from EBay per month?
a) b) c) d) e) 100 200 200 300 300 400 400 500 More than 500

Q 9: Do you know any of the following credit card fraud?

1. Phishing Fraud (fake website) 3. Credit card fraud 5. Auction Fraud 2. Identity theft Fraud

4. Virus and spyware scam

Q10: EBay Inc has a strong security for any kind of online Transaction
strongly agree Agree Cans Say Disagree Strongly Disagree

Q11:
EBay?

Have you ever been deceived by cyber criminal while buying or selling thing on

(1) If yes Please specify what type of fraud was it.. (2) No

Q 12: Buying and selling thing on EBay is Risk Free.

Strongly agree Agree Cans Say Disagree Strongly Disagree

Q13: To what extent do you agree or disagree that individuals e-fraud awareness plays a
vital role in avoiding online fraud

Strongly agree

Agree

Cans Say

Disagree

Strongly Disagree

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Q14: What is yours opinion about EBay security system?

................................................................................................................................ ................................................................................................................................ ................................................................................................................................ ....................................................................

Q15: What kind of advise would you like to give EBay Inc In order to decrease the
level of online fraud?

................................................................................................................ ................................................................................................................ ................................................................................................................ ................................................................................................................ ..................................................................

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APPENDIX2-STATICTICAL DATA
Frequency Table

Gender
a

Frequency Percent

Valid Percent Cumulative Percent

Bootstrap for Percent

Bias

Std. Error 95% Confidence Interval

Lower

Upper

Valid Female 1

100.0

100.0

100.0

.0

.0

100.0

100.0

a. Unless otherwise noted, bootstrap results are based on 50 bootstrap samples

Age
a

Frequency Percent

Valid Percent Cumulative Percent

Bootstrap for Percent

Bias

Std. Error 95% Confidence Interval

Lower

Upper

Valid 26-35 1

100.0

100.0

100.0

.0

.0

100.0

100.0

a. Unless otherwise noted, bootstrap results are based on 50 bootstrap samples

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Income
a

Frequency Percent

Valid Percent Cumulative Percent

Bootstrap for Percent

Bias

Std. Error 95% Confidence Interval

Lower

Upper

Valid 0-1500 1

100.0

100.0

100.0

.0

.0

100.0

100.0

a. Unless otherwise noted, bootstrap results are based on 50 bootstrap samples

Do you buy and sell on ebay

a

Frequency Percent

Valid Percent Cumulative Percent

Bootstrap for Percent

Bias

Std. Error 95% Confidence Interval

Lower

Upper

Valid yes

100.0

100.0

100.0

.0

.0

100.0

100.0

a. Unless otherwise noted, bootstrap results are based on 50 bootstrap samples

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what type of transaction you prefer

a

Frequency Percent

Valid Percent Cumulative Percent

Bootstrap for Percent

Bias

Std. Error 95% Confidence Interval

Lower

Upper

Valid paypal 1

100.0

100.0

100.0

.0

.0

100.0

100.0

a. Unless otherwise noted, bootstrap results are based on 50 bootstrap samples

what fraud you are expecting when you are accepting online payment
a

Frequency Percent Valid Percent

Cumulative Bootstrap for Percent Percent Bias Std. Error

95% Confidence Interval

Lower

Upper

Valid

lack of customer trust

100.0

100.0

100.0

.0

.0

100.0

100.0

a. Unless otherwise noted, bootstrap results are based on 50 bootstrap samples

93 | P a g e

paymet via credit card

a

Frequency Percent

Valid Percent Cumulative Percent

Bootstrap for Percent

Bias

Std. Error 95% Confidence Interval

Lower

Upper

Valid 20-.30 1

100.0

100.0

100.0

.0

.0

100.0

100.0

a. Unless otherwise noted, bootstrap results are based on 50 bootstrap samples

how long you have been buying from ebay

a

Frequency Percent Valid Percent Cumulative Percent

Bootstrap for Percent

Bias

Std. Error 95% Confidence Interval

Lower

Upper

Valid 1-2 years 1

100.0

100.0

100.0

.0

.0

100.0

100.0

a. Unless otherwise noted, bootstrap results are based on 50 bootstrap samples

94 | P a g e

how much do you spend on ebay per month

a

Frequency Percent

Valid Percent Cumulative Percent

Bootstrap for Percent

Bias

Std. Error 95% Confidence Interval

Lower

Upper

Valid 400+

100.0

100.0

100.0

.0

.0

100.0

100.0

a. Unless otherwise noted, bootstrap results are based on 50 bootstrap samples

do you know any of the following credit card fraud

a

Frequency Percent Valid Percent

Cumulative Percent

Bootstrap for Percent

Bias

Std. Error 95% Confidence Interval

Lower

Upper

Valid

Phishing fraud

100.0

100.0

100.0

.0

.0

100.0

100.0

a. Unless otherwise noted, bootstrap results are based on 50 bootstrap samples

95 | P a g e

Ebay has strong security for any kind of online transaction

a

Frequency Percent Valid Percent Cumulative Percent

Bootstrap for Percent

Bias

Std. Error 95% Confidence Interval

Lower

Upper

Valid Disagee 1

100.0

100.0

100.0

.0

.0

100.0

100.0

a. Unless otherwise noted, bootstrap results are based on 50 bootstrap samples

have you evere deceived by cyber criminal

a

Frequency Percent

Valid Percent Cumulative Percent

Bootstrap for Percent

Bias

Std. Error 95% Confidence Interval

Lower

Upper

Valid no

100.0

100.0

100.0

.0

.0

100.0

100.0

a. Unless otherwise noted, bootstrap results are based on 50 bootstrap samples

96 | P a g e

buying on ebay is riskfree

a

Frequency Percent

Valid Percent Cumulative Percent

Bootstrap for Percent

Bias

Std. Error 95% Confidence Interval

Lower

Upper

Valid neutral 1

100.0

100.0

100.0

.0

.0

100.0

100.0

a. Unless otherwise noted, bootstrap results are based on 50 bootstrap samples