Rating Fraud Detection---Towards Designing a Trustworthy Reputation Systems

Reputation systems could help consumers avoid transaction risk by providing historical consumers’ feedback. But, traditional reputation systems are vulnerable to the rating manipulation. It will undermine the trustworthiness of the reputation systems and users’ satisfaction will be lost. To address the issue, this study uses the real-world rating data from two travel website: Tripadvisor.com and Expedia.com and one e-commerce website Amazon.com to empirically exploit the features of fraudulent raters. Based on those features, it proposes the new method for fraudulent rater detection. First, it examines the received rating series of each entity and filter out the entity which is under attack (termed as target entity). Second, the clustering based method is applied to discriminate fraudulent raters. Experimental studies have shown that the proposed method is effective in detecting the fraudulent raters accurately while keeping the majority of the normal users in the systems in various attack environment settings

Fraud detections for online businesses: a perspective from blockchain technology

Background: The reputation system has been designed as an effective mechanism to reduce risks associated with online shopping for customers. However, it is vulnerable to rating fraud. Some raters may inject unfairly high or low ratings to the system so as to promote their own products or demote their competitors. Method: This study explores the rating fraud by differentiating the subjective fraud from objective fraud. Then it discusses the effectiveness of blockchain technology in objective fraud and its limitation in subjective fraud, especially the rating fraud. Lastly, it systematically analyzes the robustness of blockchain-based reputation systems in each type of rating fraud. Results: The detection of fraudulent raters is not easy since they can behave strategically to camouflage themselves. We explore the potential strengths and limitations of blockchain-based reputation systems under two attack goals: ballot-stuffing and bad-mouthing, and various attack models including constant attack, camouflage attack, whitewashing attack and sybil attack. Blockchain-based reputation systems are more robust against bad-mouthing than ballot-stuffing fraud. Conclusions: Blockchain technology provides new opportunities for redesigning the reputation system. Blockchain systems are very effective in preventing objective information fraud, such as loan application fraud, where fraudulent information is fact-based. However, their effectiveness is limited in subjective information fraud, such as rating fraud, where the ground-truth is not easily validated. Blockchain systems are effective in preventing bad mouthing and whitewashing attack, but they are limited in detecting ballot-stuffing under sybil attack, constant attacks and camouflage attack

A Tangled Web: Evaluating the Impact of Displaying Fraudulent Reviews

The growing interest in social media for legitimate promotion has been accompanied by an increasing number of fraudulent reviews. Beyond fraud detection, little is known about what review portals should do with fraudulent reviews after detecting them. In this paper, we study how consumers respond to potentially fraudulent reviews and how review portals can leverage such knowledge to design better fraud management policies. To do so, we combine randomized experiments with statistical learning using large-scale archival data from Yelp. Our experiments show that consumers tend to expand the variety of their choice set during product search and to increase their trust towards the review portal when it displays fraudulent reviews along with non-fraudulent reviews, rather than censor fraudulent information. Finally, our archival analysis using a Maximum Likelihood Estimation method allows us to design a novel fraud-awareness reputation system that platforms can deploy to better improve consumer trust and decision making

Tutorial and Critical Analysis of Phishing Websites Methods

The Internet has become an essential component of our everyday social and financial activities. Internet is not important for individual users only but also for organizations, because organizations that offer online trading can achieve a competitive edge by serving worldwide clients. Internet facilitates reaching customers all over the globe without any market place restrictions and with effective use of e-commerce. As a result, the number of customers who rely on the Internet to perform procurements is increasing dramatically. Hundreds of millions of dollars are transferred through the Internet every day. This amount of money was tempting the fraudsters to carry out their fraudulent operations. Hence, Internet users may be vulnerable to different types of web threats, which may cause financial damages, identity theft, loss of private information, brand reputation damage and loss of customers’ confidence in e-commerce and online banking. Therefore, suitability of the Internet for commercial transactions becomes doubtful. Phishing is considered a form of web threats that is defined as the art of impersonating a website of an honest enterprise aiming to obtain user’s confidential credentials such as usernames, passwords and social security numbers. In this article, the phishing phenomena will be discussed in detail. In addition, we present a survey of the state of the art research on such attack. Moreover, we aim to recognize the up-to-date developments in phishing and its precautionary measures and provide a comprehensive study and evaluation of these researches to realize the gap that is still predominating in this area. This research will mostly focus on the web based phishing detection methods rather than email based detection methods

Word of Mouth, the Importance of Reviews and Ratings in Tourism Marketing

The Internet and social media have given place to what is commonly known as the democratization of content and this phenomenon is changing the way that consumers and companies interact. Business strategies are shifting from influencing consumers directly and induce sales to mediating the influence that Internet users have on each other. A consumer review is “a mixture of fact and opinion, impression and sentiment, found and unfound tidbits, experiences, and even rumor” (Blackshaw & Nazarro, 2006). Consumers' comments are seen as honest and transparent, but it is their subjective perception what shapes the behavior of other potential consumers. With the emergence of the Internet, tourists search for information and reviews of destinations, hotels or services. Several studies have highlighted the great influence of online reputation through reviews and ratings and how it affects purchasing decisions by others (Schuckert, Liu, & Law, 2015). These reviews are seen as unbiased and trustworthy, and considered to reduce uncertainty and perceived risks (Gretzel & Yoo, 2008; Park & Nicolau, 2015). Before choosing a destination, tourists are likely to spend a significant amount of time searching for information including reviews of other tourists posted on the Internet. The average traveler browses 38 websites prior to purchasing vacation packages (Schaal, 2013), which may include tourism forums, online reviews in booking sites and other generic social media websites such as Facebook and Twitter.Peer reviewedFinal Accepted Versio

Review Manipulation: Literature Review, and Future Research Agenda

Background: The phenomenon of review manipulation and fake reviews has gained Information Systems (IS) scholars’ attention during recent years. Scholarly research in this domain has delved into the causes and consequences of review manipulation. However, we find that the findings are diverse, and the studies do not portray a systematic approach. This study synthesizes the findings from a multidisciplinary perspective and presents an integrated framework to understand the mechanism of review manipulation. Method: The study reviews 88 relevant articles on review manipulation spanning a decade and a half. We adopted an iterative coding approach to synthesizing the literature on concepts and categorized them independently into potential themes. Results: We present an integrated framework that shows the linkages between the different themes, namely, the prevalence of manipulation, impact of manipulation, conditions and choice for manipulation decision, characteristics of fake reviews, models for detecting spam reviews, and strategies to deal with manipulation. We also present the characteristics of review manipulation and cover both operational and conceptual issues associated with the research on this topic. Conclusions: Insights from the study will guide future research on review manipulation and fake reviews. The study presents a holistic view of the phenomenon of review manipulation. It informs various online platforms to address fake reviews towards building a healthy and sustainable environment