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Buyer Fraudulence in Peer-to-Peer eCommerce: Building Tools for Alleviation
Benjamin D. HorneComputer Science and Business Administration
Union UniversityApril 29th, 2014
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What is Peer-to-Peer eCommerce?n P2P
¨ Decentralized network,¨ Nodes are both suppliers and consumers of
resourcesn C2C - Consumer to Consumern In this Study:
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What type of Fraudulence are we dealing with?n Buyer fraudulence, as opposed to seller
fraudulence¨ Email Spoofs
n Fake PayPaln Fake Ebayn Fake Wire Transfer or Bank
¨ “Stories” through Email or Text Message
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Why does this matter to you?
n 1. eCommerce auction scams WSJ Top 10 biggest scams of 2013 list
n 2. Users frustrated with fraud on eBay since its inception, yet, very little has changed.
n 3. It could be you!
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eBay has tried…
n Reputation/Feedback Systemn Established Trust and Safety Departmentn Awareness Initiativesn Top-Rated Seller Schemesn Constant Revision of Polices and User
Agreementsn Paypal Money Delays
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What has been proposed?
n Anomaly detection schemesn Data mining schemesn Agents based-trust management schemesn Social Network Analysis and Classification
Tree Approachesn Additions to the Reputation Systemn Conceptually formalized
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Questions Proposed
n What are the traits and commonalities of typical buyer fraudulence?
n Can a simple third party tool be built to alleviate common buyer fraudulencebased on this data?
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Methodologies
n Selling data collected during a 9 week period
n Specific 1 Week Selling testn Literature Review and Comparison of
Datan Built a tool based on this data
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Salient Findings (9 week test)
n Correlations hard to find with such a small, yet, broad dataset.
n Based on some sale demographics, the correlation between fraud, electronics, and price was found.
n Consistent with other literature
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Salient Findings (1 week test)
n Electronics and High Pricen Listed 2011 Apple iMacn Price Double it’s Worthn Received 4 Fraud Hits
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Salient Findings (Keywords)
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What is FraudFindr?
n Web application built to check peer-to-peer eCommerce transactions for fraudulent or deceptive behavior
n Built with end users in mindn Simple Copy and Paste Interfacen HTML, CSS3, JavaScript, JQuery (Vegas
and Reveal), PHP
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How does is FraudFindr find fraud?n Checks:
¨Full Email Headers¨Email Bodies¨Text Messages
n Checks Additional Information about Transaction
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Full Email Headers
n Parses inputn Finds return pathn Compares email in return path to list of
good domainsn User’s can add specific domains such as
their bank
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Email Body and Text Messages
n Keywords¨Search parsed input for common keywords
found in emails and text messages¨ Evenly distributed weight¨ Weight added to “give-a-way” words
n Phrases ¨ Same Process, but all weights are evenly
distributed
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Email Body and Text Messages
n “Haste” Words¨ Algorithm Checks for duplicates of words
were duplicates make the document more relevant.
¨ Relevance is not proportional to Frequency ¨ Increment by Log base 3 of frequency + 1
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Future Work
n Full Implementation of the Bag of Words Model
n Full Responsive and Mobile Designn Continued Tested and Accuracy Updates
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Buyer Fraudulence in Peer-to-Peer eCommerce: Building Tools for Alleviation
Benjamin D. HorneComputer Science and Business Administration
Union UniversityApril 29th, 2014