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Defending Against Liar Buyer Fraud

It’s a common fraud on sites like eBay: buyers falsely claim that they never received a purchased item in the mail. Here’s a paper on defending against this fraud through basic psychological security measures. It’s preliminary research, but probably worth experimental research.

We have tested a collection of possible user-interface enhancements aimed at reducing liar buyer fraud. We have found that showing users in the process of filing a dispute that (1) their computer is recognized, and (2) that their location is known dramatically reduces the willingness to file false claims. We believe the reason for the reduction is that the would-be liars can visualize their lack of anonymity at a time when they are deciding whether to perform a fraudulent action. Interestingly, we also showed that users were not affected by knowing that their computer was recognized, but without their location being pin-pointed, or the other way around. We also determined that a reasonably accurate map was necessary — but that an inaccurate map does not seem to increase the willingness to lie.

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