Inefficiencies in Digital Advertising Markets

Digital advertising markets are growing and attracting increased scrutiny. This article explores four market inefficiencies that remain poorly understood: ad effect measurement, frictions between and within advertising channel members, ad blocking, and ad fraud. Although these topics are not unique to digital advertising, each manifests in unique ways in markets for digital ads. The authors identify relevant findings in the academic literature, recent developments in practice, and promising topics for future research

Current State of the Digital Deception Studies in IS

Digital deceptions exist on the Internet in various forms and for different purposes. The purpose of this study is to understand the current state of the digital deception research in IS discipline. Based on our review and analysis of the selected digital deception articles published in IS journals and conference proceedings, we discussed various perspectives of digital deceptions, such as the media, types of deception, deceivers, motivations, and victims. The results of our study indicate that deception phenomena are severely under-researched in IS discipline. The study provides suggestions for future research

A numeric-based machine learning design for detecting organized retail fraud in digital marketplaces

Mutemi, A., & Bacao, F. (2023). A numeric-based machine learning design for detecting organized retail fraud in digital marketplaces. Scientific Reports, 13(1), 1-16. [12499]. https://doi.org/10.1038/s41598-023-38304-5Organized retail crime (ORC) is a significant issue for retailers, marketplace platforms, and consumers. Its prevalence and influence have increased fast in lockstep with the expansion of online commerce, digital devices, and communication platforms. Today, it is a costly affair, wreaking havoc on enterprises’ overall revenues and continually jeopardizing community security. These negative consequences are set to rocket to unprecedented heights as more people and devices connect to the Internet. Detecting and responding to these terrible acts as early as possible is critical for protecting consumers and businesses while also keeping an eye on rising patterns and fraud. The issue of detecting fraud in general has been studied widely, especially in financial services, but studies focusing on organized retail crimes are extremely rare in literature. To contribute to the knowledge base in this area, we present a scalable machine learning strategy for detecting and isolating ORC listings on a prominent marketplace platform by merchants committing organized retail crimes or fraud. We employ a supervised learning approach to classify postings as fraudulent or real based on past data from buyer and seller behaviors and transactions on the platform. The proposed framework combines bespoke data preprocessing procedures, feature selection methods, and state-of-the-art class asymmetry resolution techniques to search for aligned classification algorithms capable of discriminating between fraudulent and legitimate listings in this context. Our best detection model obtains a recall score of 0.97 on the holdout set and 0.94 on the out-of-sample testing data set. We achieve these results based on a select set of 45 features out of 58.publishersversionpublishe

Risk management and nonbank participation in the U.S. retail payments system

The retail payments system in the United States has changed significantly in recent years. Advances in technology have caused a greater reliance on electronic payment networks. And the industrial structure of the payment services industry has evolved, as more and more nonbanks deliver payment products to end users and supply back-end processing. In general, these changes have made the payments system more efficient and given more choices to consumers and more payment options to merchants and businesses. ; At the same time, however, the rapid pace of change has introduced new risks to the payments system. First, as more and more banks market payment services to nonbanks and outsource payments processing, the differences in information possessed by payments participants can magnify difficulties in managing risk. Second, electronic payments have a significantly different risk profile than paper checks. Third, greater complexity of the payments network potentially reduces incentives to manage risk and may cause difficulties in coordinating risk mitigation. ; Sullivan lays the groundwork for a dialogue on policy to control risk in the U.S. retail payments system. He concludes that a thorough review of supervisory authority relevant to retail payments would be valuable. In particular, the original authority to supervise nonbank payment processors was established over 40 years ago, when the primary reason for establishing that authority was the use of computer technology applied to bank accounting systems. Is that authority adequate given the revolutionary changes in the payments technology seen over the last four decades?Payment systems

Exploring Information Disclosure In Online Auctions

This research examines how a seller’s reputation score and auction pre-configuration affects people’s participation in communication within online auction communities. A leading horizontal intermediary auction platform is used to conduct this research. Its seller “feedback” mechanism and “ask seller a question” forum are chosen as representatives of post- and intra-transactional information disclosure. A self-developed classification approach is used to classify the buyer-initiated questions. The results of multinomial logistic regression indicate that product quality, shipment and payment issues are aspects that concern buyers the most in the early stages of an auction. Subsequently, their attention is likely to shift to seller credibility and price negotiations as listing durations get longer. In terms of the influ- ence of seller feedback ratings, our findings suggest that lower-rated traders are more likely to be asked questions about product description and seller credibility. Buyer concern about seller uncertainty is only alleviated if the seller has a good reputation. Even medium-rated sellers are suspected of being opportunistic. Moreover, buyers are more willing to discuss transaction-related issues and raise negotiation-associated questions with sellers who have already achieved high reputation scores. Finally, the theoretical and managerial implications are elaborated

HOW TO MINIMIZE RISK: THE IMPLEMENTATION OF PUBLIC SECTOR SERVICES ELECTRONIC PROCUREMENT IN INDONESIA

The trend of corruption cases in the types of goods and services procurement cases handled by the Corruption Eradication Commission of the Republic of Indonesia in 2004-2019 shows an increasing number in every year. In certain types of case studies the implementation of e-Procurement with e-Cataloq is proven to play a role in reducing the risk of corrupt practices in public organizations. The objectives of this research are to build an e-Procurement implementation model in Indonesia especially on electronic identity card procurement, identify external factors that encourage individuals to commit fraudulent behavior and the approval of procurement process of government goods and services. We operate a qualitative method with a case study on the implementation of e-Procurement of electronic identity cards. The results of the study explained that the implementation model of the procurement of goods and services using the e-Purchasing method through the e-Catalog mechanism is the best e-Procurement implementation model in the procurement of government goods and services specifically for the case of procurement of electronic identity cards

Conceptual Structure of Fraud Research and Its Dynamics

The concept of fraud, its antecedents and outcomes as well as its detection and prevention, have been discussed by both academics and practitioners for decades. The scope and complexity of the concept of fraud attracts scholars from diverse disciplines. The purpose of our study is to gain a broader understanding of how fraud is viewed in the compendium of academic literature. Using semantic network analysis method, we explore the structure of fraud-related research and analyze the internal connections among the current areas of interest for fraud researchers. We are particularly interested in the relationship between the mainstream financial accounting and audit research and the field of information systems and technology. Our work makes a big stride toward the understanding of current state of fraud-related research. The interdisciplinary semantic map of keywords and subject terms helps understand the trends in fraud scholarship, identify gaps and propose directions for future research

A Systematic Review on Search Engine Advertising

The innovation of Search Engine Advertising (SEA) was first introduced in 1998. It soon became a very popular tool among practitioners for promoting their websites on the Web and turned into a billion dollar revenue source for search engines. In parallel with its rapid growth in use, SEA attracted the attention of academic researchers resulting in a large number of publications on the topic of SEA. However, no comprehensive review of this accumulated body of knowledge is currently available. This shortcoming has motivated us to conduct a systematic review of SEA literature. Herewith, we searched for and collected 101 papers on the topic of SEA, published in 72 journals from different disciplines and analyzed them to answer the research questions for this study. We have identified the historical development of SEA literature, predominant journals in the publication of SEA research, active reference disciplines as well as the main researchers in the field of SEA. Moreover, we have classified SEA literature into four categories and 10 research topics. We also uncovered a number of gaps in SEA literature and provided future research direction accordingly. Available at: https://aisel.aisnet.org/pajais/vol7/iss3/2