A study of various frauds prevailing in E-tailing sector in India

E-tailing is a rich segment waiting to be exploited. The growth rate in e-tailing sector is increasing immensely. There are many factors which are responsible for this increase such as spending powers, ease of doing transactions, internet penetration etc. Internet is a potent medium that can serve as a unique platform for the growth of retail brands in India. When there is an increase in a business, the possibility of frauds increases simultaneously. Online retailing or e-tailing is described as transactions that are conducted through interactive online computer systems, which link consumers with sellers electronically where the buyer and merchant are not at the same physical location. The fraud takes place everywhere between the buyer and seller transactions. Fraud can occur when the consumer is putting his data in the system (Phishing, hacking, spoofing). It occurs when the consumer is paying the payment for the product (Credit-card Fraud, internet banking). There are many other frauds that are prevailing these days in e-tailing sector. With the growth in the frauds, there should be some mechanisms to prevent such frauds. This paper attempts to provide a clear picture about the e-tailing frauds in India and its mechanism to reduce the fraud.