Scams and the Australian E-Business Environment

Abstract

This chapter highlights the risks and benefits of transacting business within a virtual environment. It becomes evident that e-business has changed the face of consumer/business interactions. Substantial competitive advantage can be gained by a business engaging in well-managed e-business transactions, while consumers can receive benefits such as cheaper prices, a wider range of products, and more convenient shopping via the internet. The chapter commences with a review of the current literature on scams and online fraud, including an introduction to the role that social networking sites can play in facilitating online scams. Statistics regarding e-business transactions for small and medium-sized Australian enterprises are presented followed by the exploration of two specific types of scams: overpayment scams and online shopping scams. Reported financial loss within Australia during 2010 as a result of these scams totalled AUS$29,710,420. The chapter concludes with the identification of some preventative measures to ensure the transactions occurring in any e-business environment are legitimate, followed by some directions for future research.