The Role of Familiarity, Trust And Awareness Towards Online Fraud
- Articles
- Submited: October 31, 2019
-
Published: September 30, 2019
Abstract
The financial loss due to e-commerce fraud in Malaysia has been increasing from the year 2007 to 2012. Online business and consumers are vulnerable towards online fraud due to the increased amount of usage on online transactions. The study aims to investigate the factors that contribute towards online purchases from the experience of online fraud victims. Factors examined include trust, familiarity and awareness towards online products of which a semi structured interview was designed based on these factors. The qualitative study analyses experience of online fraud victims in order to gain insight to individual behaviour and determine the reason why they are induced in making the online purchase. The samples used in this study are the online fraud victims of E-commerce. Through seven phone interviews of online fraud victims, the study conclude that people with higher levels of familiarity, confidence and trust seems to have higher levels of trustworthiness to e-commerce. The awareness of the surroundings on the other hand does not affect people’s inclination to purchase. The main contribution of this study is from an observation on cybercrime when globalisation of the Internet is rapidly moving forward.
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References
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Alias, W. N. H. W. (2016). 40,000 tertipu beli telefon atas talian. Berita Harian.
Aling, Y. D. (2016). Wanita 9 Nombor Tipu 32 Juta. Harian Metro.
Bernama. (2015). 37 kes penipuan online direkod di Johor. Sinar Harian.
Borec, T. (2015). Malaysia : Guidelines on taxation of ecommerce B2B B2C, 1–4.
Cachia, M., & Millward, L. (2011). The telephone medium and semi-structured interviews: a complementary fit. Qualitative Research in Organizations and Management. Qualitative Research in Organizations and Management: An International Journal, 6(3), 265–277.
Chatterjee, P. (2001). Online Reviews : Do Consumers Use Them ?Association for Consumer Research (Vol. ACR 2001 P).
Chin, A., Wafa, S., & Ooi, A.-Y. (2009). The Effect of Internet Trust and Social Influence towards Willingness to Purchase Online in Labuan, Malaysia. International Business Research, 2(2), 72–81. Retrieved from http://www.ccsenet.org/journal/index.php/ibr/article/view/1121
Corbitt, B. J., Thanasankit, T., & Yi, H. (2003). Trust and e-commerce: A study of consumer perceptions. Electronic Commerce Research and Applications, 2(3), 203–215. http://doi.org/10.1016/S1567-4223(03)00024-3
D.L. Hoffman, T.P. Novak, M. P. (1999). Building consumer trust in online environmentsL the case for information privay. In Communications of ACM (pp. 80–85).
Dutton, P. (2000). Trust issues in E-Commerce. Retrieved from www.sqi.gu.edu.au / wic2000 / docs / Dutton.pdf
Eccleson, P. (1999). An overview of the Internet. Interactive Marketing, 1(March), 68–75.
EMarkerter. (2016). Worldwide Retail Ecommerce Sales Will Reach $1.915 Trillion This Year. Retrieved from https://www.emarketer.com/Article/Worldwide-Retail-Ecommerce-Sales-Will-Reach-1915-Trillion-This-Year/1014369
Erdem, T. (1998). An empirical analysis of umbrella branding. Journal of Marketing Research, 35(3), 339–351.
FBI. (2016). Scam and safety: Internet Fraud. Retrieved from https://www.fbi.gov/scams-and-safety/common-fraud-schemes/internet-fraud
Fishbein, M., & Ajzen, I. (1975). Belief, attitude, intention, and behavior. Reading: Addison-Wesley.
Fishbein, M., & Ajzen, I. (1980). Understanding Attitudes and Predicting Social Behavior. New Jersey: Prentice Hall.
Gefen, D. (2000). E-commerce: the role of familiarity and trust. Omega, 28(6), 725–737. http://doi.org/10.1016/S0305-0483(00)00021-9
Group, T. (2016). Asia’s Top Internet Scams and How to Stay Safe. Retrieved from https://www.telenor.com/media/articles/2016/asias-top-internet-scams-and-how-to-stay-safe/
Gulati, R. (1995). Does Familiarity Breed Trust? The Implications of Repeated Ties for Contractual Choice in Alliances. Academy of Management, 38(February), 85–112.
Hamsi, A. S. (2015). Cybercrime over Internet Love Scams in Malaysia : A Discussion on the Theoretical Perspectives , Connecting Factors and Keys to the Problem. Journal of Management Research, 7(2), 169–181. http://doi.org/10.5296/jmr.v7i2.6938
Henry, A. (2005). A Demographic and Psychographic Profile of Heavy Internet Users and Users by Type of Internet Usage. Journal of Advertising Research, 45(1), 93–123.
Hong, I. B., & Cho, H. (2011). International Journal of Information Management The impact of consumer trust on attitudinal loyalty and purchase intentions in B2C e-marketplaces : Intermediary trust vs . seller trust, 31,469–479. http://doi.org/10.1016/j.ijinfomgt.2011.02.001
Issahak, M. A. (2016). Kes tipu online di Perak meningkat. Harian Metro. Retrieved from http://www.hmetro.com.my/node/161544
Jarvenpaa, S.L, N. Tractinsky, M. V. (2000). Consumer trust in an internet store. Information Technology and Management, 1, 45–71.
Jayabalan, P., Ibrahim, R., & Manaf, A. A. (2014). Understanding Cybercrime in Malaysia : An Overview. Sains Humanika, 2, 109–115.
K.E. Clow, D. B. (1998). Reducing perceived risk through advertising service quality ques. Journal of Professional Service Marketing, 16(2), 151–162.
Kim, J. U., Kim, W. J., & Park, S. C. (2010). Consumer perceptions on web advertisements and motivation factors to purchase in the online shopping. Computers in Human Behavior, 26(5), 1208–1222. http://doi.org/10.1016/j.chb.2010.03.032
Lueck, S. (2014). POINT OF SALE TERMINAL SECURITY by Susan G . Lueck A Capstone Project Submitted to the Faculty of Utica College April 2014 in Partial Fulfillment of the Requirements for the Degree of Master of Science in Cybersecurity, (April), 60.
Luhmann, N. (1979). Luhmann, N.John Wiley & Sons. New York: John Wiley and Sons.
Majid, D. M. B. D. A. M. (2012). Cybercrime: Malaysia. Retrieved from http://www.skmm.gov.my/skmmgovmy/media/General/pdf/DSP-Mahfuz-Majid-Cybercrime-Malaysia.pdf
Matthew K.O., Lee and Efraim, T. (2001). International Journal of Electronic Commerce. International Journal of Electronic Commerce, 6(1), 75–91.
MyCert. (2016). MyCert Incident Statistics. Retrieved from https://www.mycert.org.my/statistics/2016.php
Online, M. M. (2016). 2 cheated of S$2.6 million in lonely hearts scam in Malaysia. Todayonline.Com. Retrieved from http://www.todayonline.com/world/asia/2-cheated-s26-million-lonely-hearts-scam
Park, J., & Stoel, L. (2005). Effect of brand familiarity, experience and information on online apparel purchase. International Journal of Retail & Distribution Management, 33(2), 148–160. http://doi.org/10.1108/09590550510581476 Pavlou, P. A. (2003). Consumer acceptance of electronic commerce: Integrating trust and risk with the technology acceptance model. International Journal of Electronic Commerce, 7(3), 69–103. Provost, L. (2012). Fraud awareness , prevention , and detection in the public sector. New Zealand. Ranjay Gulati, & Maxim Sytch. (2008). Does Familiarity Breed Trust? Revisiting the Antecedents of Trust. Managerial and Decision Economics, 29(August), 165–190. http://doi.org/10.1002/mde Sekaran, U. (2006). Research methods for business: A skill building approach. John Wiley & Sons. Seounmi, Y., Lee, M., & Doyle, K. O. (2003). Lifestyles of online gamers: A psychographic approach. Journal of Interactive Advertising, 3(2), 49–56. Sheppard J., B. H. H., & Warshaw, P. R. (1988). The Theory of Reasoned Action: A Meta-analysis of Past Research With Recommendations for Modifications and Future Research. Journal of Consumer Research, 15(3), 325–42. Star. (2015). Fraud is No 1 cybercrime. The Star Online. Tian, Y., & Stewart, C. (2008). History of E-Commerce. Tung, L. (2014). FBI: Victims of online fraud lost $800m to scammers last year. CSO Online.
Vaidya, S. (2015). Impact of organizational culture on trust and commitment in international joint ventures (IJVs): An empirical investigation. Competition Forum, 13(1), 1–11.
Verhagen, T., Meents, S., & Tan, Y. (2006). Perceived risk and trust associated with purchasing at electronic marketplaces. European Journal of Information Systems, 15, 542–555. Wada, F. J. (2011). The Impact of Information Communication Technology on Banking Institutions : A Theoretical Policy Perspective of Cyber Crime in Nigeria . Presented to The Faculty of the Graduate School Southern University and A & M College Baton Rouge , Louisiana In Part. Warner, J. (2011). Understanding Cyber-Crime in Ghana : A View from Below. International Journal of Cyber Criminology, 5(July), 736–749. Wilson, T., Verschoor, C. C., Tysiac, K., Tackett, J. A., Strischek, D., Smieliauskas, W., … ACFE. (2014). Report To the Nations on Occupational Fraud and Abuse. Association of Certified Faud Examiners (Vol. 15). Retrieved from http://www.acfe.com/about-the-acfe.aspx%5Cnhttp://ssrn.com/abstract=1674427%5Cnhttp://dx.doi.org.libaccess.lib.mcmaster.ca/10.2139/ssrn.1674427%5Cnhttp://search.proquest.com.libaccess.lib.mcmaster.ca/docview/756159922?accountid=12347%5Cnhttp://sfx.scholar World-Bank. (2015). Internet users (per 100 people). Retrieved from http://data.worldbank.org/indicator/IT.NET.USER.P2?locations=ZQ&view=chart Yew, W. C. (1997). Malaysian Law and Computer Crime. SANS Institute InfoSec Reading Room. Yoon, S. (2002). The Antecedents and Consequences of Trust in Online-Purchase Decisions. Journal of Interactive Marketing, 16(2), 47–63.
Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179–211. http://doi.org/10.1016/0749-5978(91)90020-T
Alias, W. N. H. W. (2016). 40,000 tertipu beli telefon atas talian. Berita Harian.
Aling, Y. D. (2016). Wanita 9 Nombor Tipu 32 Juta. Harian Metro.
Bernama. (2015). 37 kes penipuan online direkod di Johor. Sinar Harian.
Borec, T. (2015). Malaysia : Guidelines on taxation of ecommerce B2B B2C, 1–4.
Cachia, M., & Millward, L. (2011). The telephone medium and semi-structured interviews: a complementary fit. Qualitative Research in Organizations and Management. Qualitative Research in Organizations and Management: An International Journal, 6(3), 265–277.
Chatterjee, P. (2001). Online Reviews : Do Consumers Use Them ?Association for Consumer Research (Vol. ACR 2001 P).
Chin, A., Wafa, S., & Ooi, A.-Y. (2009). The Effect of Internet Trust and Social Influence towards Willingness to Purchase Online in Labuan, Malaysia. International Business Research, 2(2), 72–81. Retrieved from http://www.ccsenet.org/journal/index.php/ibr/article/view/1121
Corbitt, B. J., Thanasankit, T., & Yi, H. (2003). Trust and e-commerce: A study of consumer perceptions. Electronic Commerce Research and Applications, 2(3), 203–215. http://doi.org/10.1016/S1567-4223(03)00024-3
D.L. Hoffman, T.P. Novak, M. P. (1999). Building consumer trust in online environmentsL the case for information privay. In Communications of ACM (pp. 80–85).
Dutton, P. (2000). Trust issues in E-Commerce. Retrieved from www.sqi.gu.edu.au / wic2000 / docs / Dutton.pdf
Eccleson, P. (1999). An overview of the Internet. Interactive Marketing, 1(March), 68–75.
EMarkerter. (2016). Worldwide Retail Ecommerce Sales Will Reach $1.915 Trillion This Year. Retrieved from https://www.emarketer.com/Article/Worldwide-Retail-Ecommerce-Sales-Will-Reach-1915-Trillion-This-Year/1014369
Erdem, T. (1998). An empirical analysis of umbrella branding. Journal of Marketing Research, 35(3), 339–351.
FBI. (2016). Scam and safety: Internet Fraud. Retrieved from https://www.fbi.gov/scams-and-safety/common-fraud-schemes/internet-fraud
Fishbein, M., & Ajzen, I. (1975). Belief, attitude, intention, and behavior. Reading: Addison-Wesley.
Fishbein, M., & Ajzen, I. (1980). Understanding Attitudes and Predicting Social Behavior. New Jersey: Prentice Hall.
Gefen, D. (2000). E-commerce: the role of familiarity and trust. Omega, 28(6), 725–737. http://doi.org/10.1016/S0305-0483(00)00021-9
Group, T. (2016). Asia’s Top Internet Scams and How to Stay Safe. Retrieved from https://www.telenor.com/media/articles/2016/asias-top-internet-scams-and-how-to-stay-safe/
Gulati, R. (1995). Does Familiarity Breed Trust? The Implications of Repeated Ties for Contractual Choice in Alliances. Academy of Management, 38(February), 85–112.
Hamsi, A. S. (2015). Cybercrime over Internet Love Scams in Malaysia : A Discussion on the Theoretical Perspectives , Connecting Factors and Keys to the Problem. Journal of Management Research, 7(2), 169–181. http://doi.org/10.5296/jmr.v7i2.6938
Henry, A. (2005). A Demographic and Psychographic Profile of Heavy Internet Users and Users by Type of Internet Usage. Journal of Advertising Research, 45(1), 93–123.
Hong, I. B., & Cho, H. (2011). International Journal of Information Management The impact of consumer trust on attitudinal loyalty and purchase intentions in B2C e-marketplaces : Intermediary trust vs . seller trust, 31,469–479. http://doi.org/10.1016/j.ijinfomgt.2011.02.001
Issahak, M. A. (2016). Kes tipu online di Perak meningkat. Harian Metro. Retrieved from http://www.hmetro.com.my/node/161544
Jarvenpaa, S.L, N. Tractinsky, M. V. (2000). Consumer trust in an internet store. Information Technology and Management, 1, 45–71.
Jayabalan, P., Ibrahim, R., & Manaf, A. A. (2014). Understanding Cybercrime in Malaysia : An Overview. Sains Humanika, 2, 109–115.
K.E. Clow, D. B. (1998). Reducing perceived risk through advertising service quality ques. Journal of Professional Service Marketing, 16(2), 151–162.
Kim, J. U., Kim, W. J., & Park, S. C. (2010). Consumer perceptions on web advertisements and motivation factors to purchase in the online shopping. Computers in Human Behavior, 26(5), 1208–1222. http://doi.org/10.1016/j.chb.2010.03.032
Lueck, S. (2014). POINT OF SALE TERMINAL SECURITY by Susan G . Lueck A Capstone Project Submitted to the Faculty of Utica College April 2014 in Partial Fulfillment of the Requirements for the Degree of Master of Science in Cybersecurity, (April), 60.
Luhmann, N. (1979). Luhmann, N.John Wiley & Sons. New York: John Wiley and Sons.
Majid, D. M. B. D. A. M. (2012). Cybercrime: Malaysia. Retrieved from http://www.skmm.gov.my/skmmgovmy/media/General/pdf/DSP-Mahfuz-Majid-Cybercrime-Malaysia.pdf
Matthew K.O., Lee and Efraim, T. (2001). International Journal of Electronic Commerce. International Journal of Electronic Commerce, 6(1), 75–91.
MyCert. (2016). MyCert Incident Statistics. Retrieved from https://www.mycert.org.my/statistics/2016.php
Online, M. M. (2016). 2 cheated of S$2.6 million in lonely hearts scam in Malaysia. Todayonline.Com. Retrieved from http://www.todayonline.com/world/asia/2-cheated-s26-million-lonely-hearts-scam
Park, J., & Stoel, L. (2005). Effect of brand familiarity, experience and information on online apparel purchase. International Journal of Retail & Distribution Management, 33(2), 148–160. http://doi.org/10.1108/09590550510581476 Pavlou, P. A. (2003). Consumer acceptance of electronic commerce: Integrating trust and risk with the technology acceptance model. International Journal of Electronic Commerce, 7(3), 69–103. Provost, L. (2012). Fraud awareness , prevention , and detection in the public sector. New Zealand. Ranjay Gulati, & Maxim Sytch. (2008). Does Familiarity Breed Trust? Revisiting the Antecedents of Trust. Managerial and Decision Economics, 29(August), 165–190. http://doi.org/10.1002/mde Sekaran, U. (2006). Research methods for business: A skill building approach. John Wiley & Sons. Seounmi, Y., Lee, M., & Doyle, K. O. (2003). Lifestyles of online gamers: A psychographic approach. Journal of Interactive Advertising, 3(2), 49–56. Sheppard J., B. H. H., & Warshaw, P. R. (1988). The Theory of Reasoned Action: A Meta-analysis of Past Research With Recommendations for Modifications and Future Research. Journal of Consumer Research, 15(3), 325–42. Star. (2015). Fraud is No 1 cybercrime. The Star Online. Tian, Y., & Stewart, C. (2008). History of E-Commerce. Tung, L. (2014). FBI: Victims of online fraud lost $800m to scammers last year. CSO Online.
Vaidya, S. (2015). Impact of organizational culture on trust and commitment in international joint ventures (IJVs): An empirical investigation. Competition Forum, 13(1), 1–11.
Verhagen, T., Meents, S., & Tan, Y. (2006). Perceived risk and trust associated with purchasing at electronic marketplaces. European Journal of Information Systems, 15, 542–555. Wada, F. J. (2011). The Impact of Information Communication Technology on Banking Institutions : A Theoretical Policy Perspective of Cyber Crime in Nigeria . Presented to The Faculty of the Graduate School Southern University and A & M College Baton Rouge , Louisiana In Part. Warner, J. (2011). Understanding Cyber-Crime in Ghana : A View from Below. International Journal of Cyber Criminology, 5(July), 736–749. Wilson, T., Verschoor, C. C., Tysiac, K., Tackett, J. A., Strischek, D., Smieliauskas, W., … ACFE. (2014). Report To the Nations on Occupational Fraud and Abuse. Association of Certified Faud Examiners (Vol. 15). Retrieved from http://www.acfe.com/about-the-acfe.aspx%5Cnhttp://ssrn.com/abstract=1674427%5Cnhttp://dx.doi.org.libaccess.lib.mcmaster.ca/10.2139/ssrn.1674427%5Cnhttp://search.proquest.com.libaccess.lib.mcmaster.ca/docview/756159922?accountid=12347%5Cnhttp://sfx.scholar World-Bank. (2015). Internet users (per 100 people). Retrieved from http://data.worldbank.org/indicator/IT.NET.USER.P2?locations=ZQ&view=chart Yew, W. C. (1997). Malaysian Law and Computer Crime. SANS Institute InfoSec Reading Room. Yoon, S. (2002). The Antecedents and Consequences of Trust in Online-Purchase Decisions. Journal of Interactive Marketing, 16(2), 47–63.
How to Cite
1.
The Role of Familiarity, Trust And Awareness Towards Online Fraud. Journal of Research and Opinion [Internet]. 2019 Sep. 30 [cited 2024 Nov. 21];6(9):2470-8. Available from: https://researchopinion.in/index.php/jro/article/view/23
