ONLINE SHOPPINGSCAMA STUDY OF SCAMTACTICS ANDCOUNTERMEASURESITT320Group ProjectCDCS1103APAGE 1
STUDENT NAME STUDENT ID SIGNATURENafeesha Nazeeha Abdullah Nasru 2024266286 nafeeshaIrrina Elisha Awang Hepeni 2024668754 irrinaNur Filza Dalila Abdul Rani 2024410358 filzaPREPARED BY:PREPARED FOR:MADAM SULASTRI PUTITPAGE 2Student DeclarationI DECLARE THAT:I understand what is meant by plagiarism.This assignment is all my own work and I have acknowledge any use ofthe published or unpublished works of other people.I hold a copy of this assignment which I can produce if the original islost or damaged.
TABLEOFCONTENTS0406INTRODUCTIONLITERATURE REVIEW& SCAM ANALYSISMETHODOLOGY &SIMULATION DESIGNSIMULATION RESULT& FINDING0911COUNTERMEASURES &RECOMMENDATIONS 16CONCLUSION &FUTURE WORK 19PAGE 3
CHAPTER 11.1 BACKGROUND OF THE STUDYOnline shopping has become an integral part of our lives as the world continues toadvance digitally. This practice is a form of electronic commerce which allowsconsumers to purchase goods and services online. However, just like anythingassociated with the Internet, users are also exposed to various online threats. Oneof the most prevalent issues is the rise of online shopping scams. Cyber enemies keepcontinuing to exploit vulnerabilities such as fake websites, fraudulent sellers,misleading advertisements and phishing tactics to deceive unsuspecting buyers.19.8% rise in local e-commerce scams is reported by the Commercial CrimeInvestigation Department of Royal Malaysia Police during the first quarter of 2025.Our group chose to research online shopping scams because they have become one ofthe most common and concerning forms of cybercrime in today’s digital society. Bystudying this issue, we aim to better understand how these scams occur, why theyare effective, and what measures can help protect consumers from becoming victims.Page 41.2 PROBLEM STATEMENTAs online shopping continues to expand andintegrate into everyday life, the digitalenvironment has become increasingly attractive tocybercriminals. The convenience of e-commercecreates opportunities not only for sellers andbuyers but also for scammers who take advantageof the openness in online platforms. To build a saferdigital marketplace, there is a need for strongeruser awareness, better detection of scam patterns,and practical cybersecurity measures that reduceconsumer vulnerability. A future state where usersare educated, platforms are more secure, and scamattempts are easier to identify is essential toprotect the growing online shopping ecosystem.
1.3 PROJECT OBJECTIVESCHAPTER 1Page 5As online shopping continues to expand and integrate intoeveryday life, the digital environment has become increasinglyattractive to cybercriminals. The convenience of e-commercecreates opportunities not only for sellers and buyers but also forscammers who take advantage of the openness in online platforms.To build a safer digital marketplace, there is a need for strongeruser awareness, better detection of scam patterns, and practicalcybersecurity measures that reduce consumer vulnerability. Afuture state where users are educated, platforms are more secure,and scam attempts are easier to identify is essential to protect thegrowing online shopping ecosystem.1.4 SCOPE OF PROJECTTo identify the typical patterns ofonline shopping scams from pastcases.To suggest practical ways to preventonline shopping scamsTo educate the public on how torecognise scam websites and fakeseller
Online shopping scams occur when fraudsters create fake online stores,listings, or delivery/payment scenarios to trick consumers into payingfor goods or services that are never delivered or significantlydifferent from what was advertised. These scams exploit trust in ecommerce platforms and courier services.OMMUNICATION CHANNELS USED:Fake websites and online storesin Social media platform(Facebook, Instagram,TikTok)Messaging apps(WhatsApp, Telegram)Email and SMS posing as sellers or courier.2.1 OVERVIEW OF THE SELECTED SCAM TYPECHAPTER 2Scammers advertiseproducts at veryattractive prices onwebsites, social media,or online marketplaces.Victims are encouragedto make quick paymentsusing unsafe methodssuch as bank transfer,COD, or fake paymentlinks.After payment, the sellerdisappears, sends a fakecancellation or refundmessage, or delivers nothingor a worthless item.Victims realise the fraudonly after losing moneyand being unable tocontact the seller.How the Scam Works?1 23 4Page 6
C a s e S t u d y 3 : F a l s e P a y m e n t S c a m( C r i m e S t o p p e r s V i c t o r i a )T h i s c a s e s t u d y f r o m C r i m e S t o p p e r s V i c t o r i a d e s c r i b e s o n l i n em a r k e t p l a c e f a l s e p a y m e n t s c a m s w h e r e a b u y e r w a s t a r g e t e dw i t h a s e e m i n g l y l e g i t i m a t e o f f e r f o r a s m a r t w a t c h a t a l o wp r i c e , o n l y f o r t h e s e l l e r t o a s k f o r p a y m e n t t h r o u g h i n s e c u r em e t h o d s a n d r e f u s e i n - p e r s o n i n s p e c t i o n , p r o m p t i n g t h e b u y e rt o s u s p e c t f r a u d a n d a v o i d p a y m e n t ; a n o t h e r i n c i d e n t i n v o l v e da s e l l e r r e c e i v i n g a f a k e P a y P a l p a y m e n t n o t i f i c a t i o n t h a tr e q u i r e d s h i p m e n t b e f o r e f u n d s w e r e r e l e a s e d , w h i c h w a sc o n f i r m e d a s a s c a m o n l y a f t e r d i r e c t v e r i f i c a t i o n w i t h P a y P a l ,h e l p i n g b o t h p a r t i e s a v o i d f i n a n c i a l l o s s e s .2.2 REAL-WORLD CASE STUDIESC a s e S t u d y 1 : F a k e B B Q O n l i n e S t o r e( S c a m w a t c h , A u s t r a l i a )T h i s c a s e s t u d y d e s c r i b e s a n o n l i n e s h o p p i n g s c a m w h e r ev i c t i m s l o s t A U $ 1 6 0 a f t e r p u r c h a s i n g a b a r b e c u e f r o m aw e b s i t e o f f e r i n g p r i c e s t h a t w e r e t o o g o o d t o b e t r u e . T h es e l l e r e n c o u r a g e d p a y m e n t v i a d i r e c t b a n k t r a n s f e r b yo f f e r i n g a d i s c o u n t , w h i c h t h e v i c t i m s a c c e p t e d . A f t e rm a k i n g t h e p a y m e n t , t h e y w e r e i n f o r m e d t h a t t h e o r d e r w a sc a n c e l l e d a n d p r o m i s e d a r e f u n d , b u t t h e m o n e y w a s n e v e rr e t u r n e d . T h e w e b s i t e w a s l a t e r i d e n t i f i e d a s a f a k e o n l i n es t o r e , h i g h l i g h t i n g h o w s c a m m e r s u s e a t t r a c t i v e d e a l s a n du n s a f e p a y m e n t m e t h o d s t o d e c e i v e o n l i n e s h o p p e r s .C a s e S t u d y 2 : P a r c e l S c a m i n M a l a y s i a ( M a l a y M a i l )I n M a l a y s i a , s c a m m e r s a r e i n c r e a s i n g l y u s i n g p a r c e l d e l i v e r ys c a m s t o t r i c k o n l i n e s h o p p e r s i n t o p a y i n g f o r g o o d s t h e yn e v e r o r d e r e d . I n t h e s e s c h e m e s , v i c t i m s r e c e i v e u n e x p e c t e dp a r c e l s o r f a k e d e l i v e r y n o t i f i c a t i o n s a n d a r e p e r s u a d e d t om a k e c a s h - o n - d e l i v e r y ( C O D ) p a y m e n t s o r f o l l o w l i n k s t h a tl e a d t o p h i s h i n g s i t e s t o p a y f o r t h e i t e m o r p r o v i d e p e r s o n a li n f o r m a t i o n . O f t e n , t h e s c a m m e r s p o s e a s l e g i t i m a t e s e l l e r s o rc o u r i e r c o m p a n i e s o n s o c i a l m e d i a o r m e s s a g i n g a p p s , a n dt h e v i c t i m s o n l y r e a l i z e t h e y ’ v e b e e n s c a m m e d a f t e r p a y i n ga n d r e c e i v i n g n o t h i n g o f v a l u e . A u t h o r i t i e s w a r n t h a t s u c hs c a m s a r e r i s i n g w i t h e - c o m m e r c e g r o w t h a n d a d v i s ec o n s u m e r s t o v e r i f y d e l i v e r i e s b e f o r e p a y i n g a n d t o r e p o r ts u s p i c i o u s i n c i d e n t s i m m e d i a t e l y .PAGE 7
2.3 PSYCHOLOGICAL & TECHNICAL FACTORSVISUAL INDICATORBEHAVIOURINDICATORSPoor website design,spelling errors, orbroken linksPressure to payquicklyLack of clear contactinformation or returnpolicyRequests for unusualpayment methodsPrices that are“too good to be true”Refusal to allow orderverification oritem inspectionCHAPTER 22.4 WARNING SIGN & RED FLAGSVictims often fall prey to online shopping scams due to a combination ofpsychological factors. Many consumers inherently trust familiar e-commerceplatforms and assume that products advertised online are legitimate. The appealof discounted prices and limited-time offers can create a sense of urgency,leading individuals to make hasty purchasing decisions without verifying theseller’s credibility. Furthermore, a lack of awareness about common scamtechniques increases vulnerability, as many victims do not recognize warningsigns until it is too late.Scammers exploit these vulnerabilitiesthrough various manipulation strategies.They often create urgency by claimingthat an offer is ending soon, pressuringvictims to act quickly. Authorityimpersonation is another tactic, wherefraudsters pose as representatives ofcourier companies, bank, or paymentplatforms to appear legitimate.Additionally, scammers use social proof,such as fake reviews, testimonials, orexaggerated ratings, to convince victimsthat the product and seller aretrustworthy. These techniques worktogether to increase the likelihood of asuccessful scam.WHY VICTIM FALLS FOR SCAM?COMMON MANIPULATION TECHNIQUES USED BY SCAMMERS:PAGE 8
Page 9CHAPTER 33.1 RESEARCH METHODOLOGY TYPES OF RESEARCH:This project utilizes a DescriptiveResearch approach to analyze theoperational mechanics of online shoppingscams. The primary objective of thismethodology is to observe and documentthe characteristics of fraudulent ecommerce activities without influencing thebehavior of real-world threat actors.3.2 ETHICAL CONSIDERATIONDATA COLLECTION (SECONDARY DATA) STRATEGY:GOVERNMENT SECURITYALERTS :Scamwatch AustraliaCrime Stoppers VictoriaNEWS MEDIA REPORT :Malay Mail ( parcel deliveryscams )DIGITAL OBSERVATION :The group that scrutinizedsuspicious advertisements andfake e-commerce websites.Online shopping growth increases scam risksScammers exploit open digital platformsImportance of user awareness and scam detection!! Safer and more secure marketplace.
ADVERTISEMENTVISUALINTERACTIONPAYMENTREQUESTSCAMOUTCOMERED FLAGSIDENTIFIED3.4 SIMULATION WORKFLOWPage 103.3 SIMULATION OVERVIEWOpen-Source Intelligence(OSINT) techniques are used to analysepublicly reported scam cases and online scam behaviours. The purpose ofthe simulation is to illustrate the scam workflow, highlight commonmanipulation techniques, and educate users on identifying warning signs.This approach allows the study to realistically represent scam scenarioswithout causing harm to real users orsystem.STEP-BY-STEP FLOWCHART
CHAPTER 44.1 SIMULATION OUTPUTWe are doing a survey to demonstrating thecurrent state of student awareness. The surveywas distributed to students to measure awarenessof online shopping scams. The data demonstratesthe frequency of scam encounters and typicalplatforms used. Here’s some data collection thatwe get from the survey:4.1.1 RESPONDENT BACKGROUND 4.1.2 SCAM EXPERIENCEPage 11
CHAPTER 44.1.3 TRANSACTION DETAILS4.1.4 COMMUNICATION & ACTIONPage 12
CHAPTER 4Compliance with Off-Platform Requests:There’s 37.5% of respondents admitted the sellerasked them to move the conversation outside theofficial platform, and 25% communicated viaWhatsApp. From here we can see that victims showeda willingness to trust sellers who violateplatform terms. Moving communication to encryptedprivate apps(WhatsApp) removes the safetymonitoring of the marketplace(Shopee/Lazada),making it impossible for the platform to interveneor verify chat logs during disputes.4.2 IDENTIFIEDVULNERABILITIESHUMAN WEAKNESSESSusceptibility to Urgency and Pressure:Finding that 50% of respondents reposted thatthe seller pressured them to make a quickpayment. This indicates a psychological wherescammers successfully create a false sense ofurgency (FOMO - Fear Of Missing Out). Victimsare manipulated into bypassing their usualsafety checks like reading reviews to secure a“deal” before it disappears.Complacency in Low-Value Transaction:There’s 75% of the money lost was “Less than RM50”.This suggests a “Micro-Transaction Complacency”.Users likely lower their guard for smaller amounts,assuming the risk is negligible. Scammers exploitthis by targeting many victims for smallamounts(volume fraud) rather than a few victims forlarge amounts, as victims are less likely toperform deep due diligence for a sub-RM50 purchase.Page 13
CHAPTER 44.2 IDENTIFIEDVULNERABILITIESSYSTEM OR PROCESSWEAKNESSESIneffective Escrow or Payment Protection:The most common scam type as “Item was not delivered”.Additionally, 75% used Online Banking. While OnlineBanking(FPX) is standard, the fact that items were neverdelivered suggests a failure in the Escrowprocess(holding money until receipt). This indicatesthat victims likely performed direct bank transfers tothe seller’s personal account rather than through theplatform’s secure gateway(e.g., Shopeepay), or theyinadvertently released payment early.Lack of Reporting IncentiveFrom the survey, we can see that 37.5% of victimsdid not report the scam. This highlight a weaknessin the post-scam process. Victims may feel thatthe reporting mechanism is too cumbersome, or theybelieve reporting is futile for smalllosses(<RM50). This under-reposting allowsscammers to continue operating the same accountswithout being banned.Platform Detection Gaps:There’s 87.5% of scams secured on Shopee, amajor platform. Despite Shopee having securitymeasures, the high incidence rate suggeststhat the platform’s automated detectionsystems are failing to flag malicious sellersor “copycat listings” before victims interactwith them.Page 14
CHAPTER 4The survey results highlighted that 75% of victims utilized OnlineBanking for their transactions rather than securing payment throughplatform-specific guarantees. This finding is particularly significantwhen analyzed alongside the “Semak Mule” initiative launched by theCommercial Crime Investigation Department(CCID) of PDRM.The high prevalence of direct bank transfers suggests a criticalprocedural gap among students, victim are likely failing to verify theseller’s bank account number on the CCID Semak Mule portal prior topayment. In real-world scam operations, fraudsters almost exclusivelyuse “mule accounts”(rented or stolen bank accounts) to receive illicitfunds. Since the Semak Mule portal maintains a database of bankaccounts and phone numbers previously linked to police reports, asimple pre-transaction check could have flagged these accounts as“suspicious” and prevented the financial loss.This data suggests that while students may digitally savvy, they arenot actively utilizing the specific government verification toolsavailable to them. The “item not delivered” scam is often successfulprecisely because the buyer transfers money directly to a mule accountwithout performing this crucial background check.4.3 DISCUSSION OFRESULTPage 15
Page 16CHAPTER 55.1 TECHNICAL COUNTERMEASURESEMAIL FILTERINGEmail filtering helps detect and blockphishing emails that promote fakeonline stores or fraudulent promotions.These systems analyze suspicious links,sender reputation and maliciousattachments to reduce the risk of usersclicking scam related emails.MULTI-FACTORAUTHENTICATIONMulti-factor authentication adds anextra layer of security to onlineshopping accounts. This technicprevents unauthorized access byrequiring additional verification.SECURITY TOOLS &POLICIESAntivirus and firewall protectionhelps detect fake shopping websites.E-commerce platform should alsoimplement HTTPS encryption andregular security updates to protectuser data and payment information.
Page 17VERIFY WEBSITE URLS ANDCHECK HTTPS SECURITYAVOID DEALS THAT SEEMTOO GOOD TO BE TRUEUSE TRUSTED PAYMENTMETHODSREAD SELLER REVIEWS ANDRATINGS BEFORE PURCHASEAWARENESS TRAINING USER BEHAVIOUR GUIDELINESUSER SHOULD BE EDUCATEONHOW ONLINE SHOPPINGSCAMS OPERATEFAKE DISCOUNTSIMPERSONATION OFTRUSTED BRANDSSOCIAL MEDIAADVERTISEMENTS THATREDIRECT TOFRADULENT MEBSITES.5.2 HUMAN-CENTEREDCONTERMEASURESDID YOU KNOW ?ONLINE SHOPPING FRAUD CASES INMALAYSIA INCREASED BY ABOUT36.9%, WITH OVER 2,300 CASESREPORTED AND LOSSES EXCEEDINGRM19 MILLION IN ONE PERIOD ALONE.
5.3 AWARENESSCAMPAIGN CONCEPTPage 18
PROJECT SUMMARYCHAPTER 6This project investigated online shopping scams usinga descriptive research approach that combined astudent survey with a simulated scam environment. Thesurvey findings indicated that although manyrespondents were aware of common scam tactics, usersremained vulnerable due to trust in online sellers,urgency cues, and weak verification practices. Asimulation workflow was also developed to demonstratehow scammers exploit human and procedural weaknesses.Based on the findings, technical and human-centeredcountermeasures were proposed, highlighting theimportance of integrating security controls with userawareness to reduce online shopping scam risks.Constraints faced in this Project?Restricted Target GroupDependence on OnlineDistributionLimited Access toRespondentsPage 19
Did you know?Several improvements can be considered for future studies.Future research could expand the target population to includemembers of the general public from different age groups andbackgrounds, as well as increase the sample size to improvethe reliability of the findings. Involving participants frommultiple institutions and locations would also help reducesampling bias. In addition, qualitative methods such asinterviews and open-ended questions could be incorporated toobtain deeper insights into scam experiences. Future work mayalso examine different types of online shopping scams ingreater detail and include technical perspectives onprevention and detection mechanisms.FUTURE IMPROVEMENTAwareness alone is not always enoughto prevent scams. Emotionalmanipulation can override rationaldecision-making in online shoppingsituations.Page 20
REFERENCESPage 21CRIME STOPPERS VICTORIA. (N.D.). FALSE PAYMENT SCAMS. CRIME STOPPERSVICTORIA. RETRIEVED JANUARY 27, 2026, FROM CRIME STOPPERS VICTORIA.(N.D.). FALSE PAYMENT SCAMS. CRIME STOPPERS VICTORIA. RETRIEVEDJANUARY 27, 2026, FROM HTTPS://WWW.CRIMESTOPPERSVIC.COM.AU/CURRENTFOCUS/ONLINESAFETY/FALSE-PAYMENT-SCAMS/ZALANI, A. (2025, JUNE 17). PAYING FOR NOTHING: HOW MALAYSIANS ARESCAMMED USING PARCELS THEY NEVER ORDERED. MALAY MAIL. CRIME STOPPERSVICTORIA. (N.D.). FALSE PAYMENT SCAMS. CRIME STOPPERS VICTORIA. RETRIEVEDJANUARY 27, 2026, FROM CRIME STOPPERS VICTORIA. (N.D.). FALSE PAYMENTSCAMS. CRIME STOPPERS VICTORIA. RETRIEVED JANUARY 27, 2026, FROMHTTPS://WWW.CRIMESTOPPERSVIC.COM.AU/CURRENTFOCUS/ONLINESAFETY/FALSE-PAYMENT-SCAMS/AUSTRALIAN COMPETITION & CONSUMER COMMISSION. (N.D.). ONLINESHOPPING SCAM: WE LOST $160 ON A FAKE BBQ. SCAMWATCH. RETRIEVEDJANUARY 27, 2026, FROM HTTPS://WWW.SCAMWATCH.GOV.AU/PROTECTYOURSELF/REAL-LIFE-STORIES/SCAM-VICTIMS-TELL-US-THEIRSTORIES/ONLINE-SHOPPING-SCAM-WE-LOST-160-ON-A-FAKE-BBQEBANTUAN.MY. (N.D.). SEMAKMULE CCID PORTAL: JABATAN SIASATAN JENAYAHKOMERSIL PDRM. EBANTUAN.MY. RETRIEVED JANUARY 27, 2026, FROMAUSTRALIAN COMPETITION & CONSUMER COMMISSION. (N.D.). ONLINE SHOPPINGSCAM: WE LOST $160 ON A FAKE BBQ. SCAMWATCH. RETRIEVED JANUARY 27, 2026,FROM HTTPS://WWW.SCAMWATCH.GOV.AU/PROTECT-YOURSELF/REAL-LIFESTORIES/SCAM-VICTIMS-TELL-US-THEIR-STORIES/ONLINE-SHOPPING-SCAM-WELOST-160-ON-A-FAKE-BBQWIKI SCAM ALERT. (N.D.). 15 REAL-LIFE SCAM CASE STUDIES & TRUE STORIESOF. WIKI SCAM ALERT. RETRIEVED JANUARY 27, 2026, FROMHTTPS://WIKISCAMALERT.COM/15-REAL-LIFE-SCAM-CASE-STUDIES-TRUESTORIESOF/#REAL_SCAM_CASE_STUDIES_%E2%80%93_DEEP_DIVE_INTO_FINANCIAL_AND_ONLINE_FRAUDS (WIKI SCAM ALERT)MALAYMAIL (2025, MARCH 27). BUKIT AMAN: ONLINE SHOPPING SCAMS SURGE36.9PC IN MALAYSIA, LOSSES EXCEED RM19 MILLION SINCE JANUARYRETRIEVED JANUARY 27, 2026, FROMHTTPS://WWW.MALAYMAIL.COM/NEWS/MALAYSIA/2025/03/27/BUKIT-AMANONLINE-SHOPPING-SCAMS-SURGE-369PC-IN-MALAYSIA-LOSSES-EXCEEDRM19M-SINCE-JANUARY/171087AUSTIN CAMEONS (2925, JULY 23). POLICE: E-COMMERCE SCAMS COSTMALAYSIANS RM63 MILLION IN SIX MONTHS. RETRIEVED JANUARY 27, 2026,FROM HTTPS://WWW.NST.COM.MY/NEWS/CRIMECOURTS/2025/07/1249250/UPDATED-POLICE-E-COMMERCE-SCAMS-COSTMALAYSIANS-RM63MIL-SIX-MONTHS
REFERENCESPage 22SUKBIR CHEEMA (2025, MARCH 28). MALAYSIANS LOST RM19 MILLION TOONLINE SCAMS IN THE FIRST THREE MONTHS OF 2025. RETRIEVED JANUARY 27,2026, FROM HTTPS://SAYS.COM/MY/TECH/ONLINE-SCAMS-JANUARY-MARCH-2025JO-EY CHEE (2025, AUGUST 5). 7 COMMON ONLINE SCAMS THAT MALAYSIANSFALL FOR. RETRIEVED JANUARY 27, 2026, FROM DOLLARS AND SENSEMALAYSIA HTTPS://DOLLARSANDSENSE.MY/8-COMMON-ONLINE-SCAMS-THATMALAYSIANS-FALL-FOR/ANDRE CHAN (2023, JUNE 20). FROM JOB SCAMS TO MONEY MULING, HERE’SNOW NOT TO FALL VICTIM TO AN ONLINE SCAM. RETRIEVED JANUARY 27, 2026,FROM HTTPS://SHOPEE.COM.MY/BLOG/ONLINE-SCAMS-IN-MALAYSIA/SCAMADVISER (2023, MAY 4). ONLINE SCAMS & FRAUD IN MALAYSIA.RETRIEVED JANUARY 27,2026, FROMHTTPS://WWW.SCAMADVISER.COM/ARTICLES/ONLINE-SCAMS-FRAUD-INMALAYSIA