Abstract
Online shopping fraud is a growing problem, defined generally by the use of deception to create false websites or attempt to sell false products to unsuspecting consumers. Within the current research, online shopping fraud was specifically defined as paying for a product online that you have never received as well as receiving a product that is very different to what you were expecting (usually lower in quality or a counterfeit you were not expecting). With COVID-19 driving an increase in online shopping, it is not surprising that corresponding incidents of fraud have increased. The Australian Competition and Consumer Commission (ACCC) reported that in 2021, Australians lost over AUD$8 million to these types of schemes (ACCC, 2022), which is a substantial increase from the AUD$4.8 million reported lost in 2019 (2020). Despite the increase in losses, there is limited research that examines online shopping fraud as a discrete fraud type. The current research addresses this gap in current knowledge, through an examination of online shopping fraud, as related to Australian consumers in a COVID-19 context. To do this, the research answers the following questions: 1. What is the prevalence of both online shopping fraud and near misses? 2. What impact do individuals describe in the aftermath of online shopping fraud and/or a near miss? 3. What are the techniques used by offenders in successful online shopping fraud approaches? 4. What effect does online shopping fraud and/or a near miss have on the intention to engage in future shopping activities? 5. What actions can be taken by retailers to reduce the likelihood and impact of online shopping fraud on their customers? An online survey was completed by 1011 respondents, all of whom had undertaken an online shopping transaction. Results indicate that 40% of the current sample were exposed to online shopping fraud, through either a direct monetary loss or the experience of a near miss while online shopping. This figure highlights the prevalence of this type of fraud and demonstrates the need to understand how it occurs, the impacts on victims, and measures that can be taken to reduce the likelihood of future victimisation. Overall, this research provides important insights into victimisation and effective offending techniques, providing a platform for the Australian Retailers Association to affect positive change in tackling this fraud type.