Researchers develop tool to combat auction fraud
Carnegie Mellon University researchers are in an old adage to develop anti-fraud software for Internet auction sites: It is not what you know, it is, you know.On sites such as eBay, users warn each other if they have a bad experience with a seller by rating their transactions. But the CMU researchers said savvy fraudsters are around that by carrying out transactions with friends or even themselves, using alternative user names to give themselves high satisfaction ratings _ so unsuspecting customers will still try to buy from them.
The CMU software looks for patterns of users who have repeated dealings with one another, and alerts other users that there is a higher probability that a fraudulent transaction with them.
“There are a lot of commonsense solutions, like more careful about how you screen the sellers,” said Duen Horng “Polo” Chau, the researcher, developed the software with computer science professor Christos Faloutsos and two other students. “But since I am an engineering student, I wanted to come with a systematic approach” to identify likely to commit fraud.
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