Anatomy of an eBay fraud

Abstract

Purpose The purpose of this study is to describe in detail a recent eBay fraud and to provide a related framework of teaching tools for courses in business law and ethics. The case describes an eBay transaction involving return fraud. This study highlights the problem of fraudulent purchase tactics by an eBay buyer who exploited the eBay feedback mechanism and administrative procedures in attempt to obtain a price reduction or to receive the item for free as a concession. Design/methodology/approach The work is a case study providing the details and background information on an original eBay return fraud. The case itself provides the source documentation and some background on the eBay platform and its rules. The Appendix provides a set of teaching instructions and discussion questions with model answers related to the specifics of the case. Findings The eBay resolution of the matter is provided in the Epilogue section of the Appendix. All negative feedback by the buyer against the seller in an attempt to get the item for free was removed by eBay, and the buyer further relinquished all selling privileges on eBay. Originality/value This study is unique because it provides the original eBay listing and screenshots of eBay correspondence and the eBay resolution of the matter. The specific type of return fraud is also unusual, as it was directed by the eBay buyer against the seller which appears to be an evolving problem for online retail.