Five types of Behavior that are Observed

VI. Five types of Behavior that are Observed

Cost Environment

1. The larger the standard deviation the more likely it is stolen;
2. Prices below MSRP or cost; and
3. Prices fluctuate per sale or buyer
   

Feedback Manipulation

1. Low dollar items listed in first 15/30 days of account creation;
2. Similar buyers and sellers in the first 30 days of feedback
   

Duration and IDs

1. Changes User IDs frequently;
2. Often changing personal names to business names; and
3. Often changing account several times over a year
   

Buying and Selling Activity

• Normal buying activity and selling activity then it starts
  

Multiple of the same items for sale (high demand)

• No longer household items but brand new items for sale
  

System for Evaluating a Suspect’s Behavior

• Low dollar starting prices ($.01-$5.00) but the main point is it’s listed below cost;
• One-day duration of listing;
• Patterns in feedback that exhibit hidden accounts;
• Large standard deviation in items final selling value;
• Changes in User ID; and
• Grouping similar products instead of up sales, and add-ons to increase the benefit
  

Note: There is no single behavior that is always indicative of fraud

Concerns in Interpreting Behavior; Incorrectly interpreting the behaviors of fraud

• Identifying signs of feedback manipulation;
• Understanding the cost of goods;
• Duration of listings;
• Identifying an illegitimate business environment; and
• Not clearly establishing other fraud behaviors