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Discussion Question 1
What kinds of fraud, if any, are users on auction sites such as eBay
most susceptible to? What efforts could sites like eBay use to reduce
the potential for fraud among traders on its site?

Discussion Question 2
Check out the iTunes Music Store (http://www.apple.com/itunes) from
Apple Computer. The site allows Mac and PC users to legally discover
purchase and download music online.

Can the iTunes model survive in an environment where illegal music
downloading runs rampant?

Discussion Question 3
Research the topic of identity theft. Come up with 3-4 suggestions you
would make to friends to guard themselves against identity theft online.

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Solution Summary

Efforts use to reduce fraud on auction sites- illegal music downloading- identity theft.

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Discussion Question 1
What kinds of fraud, if any, are users on auction sites such as eBay
most susceptible to? What efforts could sites like eBay use to reduce
the potential for fraud among traders on its site?

Apart from the common frauds associated with ecommerce, such as those related to theft of personal confidential information of consumers by intruders or hackers, the common frauds associated with auction sites like Ebay where buyers and sellers meet are related to the authenticity of the sellers.

In other words, it is quite possible for the sellers to provide faulty goods, totally different from one shown on the auction site, resulting in losses for the buyer. Further, growing number of criminals are using auctions sites like ebay to sell counterfeit and fake products.

The effort taken by Ebay to encounter such risks has been the use of its rating and feedback system. Buyers are encouraged to give rating and comment to their purchases, once they have received their merchandise, so that future buyers from the same seller can ascertain about the seller's background, authenticity and quality of product. However, it is not a fool proof method Dishonest sellers can build up ...

Solution provided by:
Sandeep Bardia, MBA
Education
  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
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