Web and mobile fraud
Social media sites becoming a concern
Although set up to establish an online social community, retailers say that platforms such as Facebook are increasingly being used by sellers to move suspicious merchandise.
And, they argue, there is a correlation between the growth in this activity and the tightening up of procedures at high-profile auction sites such as ebay.
Ebay, which has had a high profile ‘road to Damascus’ in fighting fraud on its site, is now a member of ORIS Forums, the not-for-profit retailer organisation which shares best practice to reduce collective losses.
"ebay used to be regarded as ‘the weapon of choice’ by people looking to sell stolen goods, but ebay’s Global Asset Protection team and its willingness to proactively collaborate with other retailers, means that the issue is migrating to other sites that are perhaps less rigorous when it comes to getting fraudsters off their site,” said Louise Henham, Director of ORIS Forums.
“We have been trying to engage with Facebook to get them to come and talk to the Forums about working together to stop criminal behaviour, like the successful conversation we had with ebay who are now extremely supportive of the retail community,” she said.
Retailers now fear the displacement theory – when one easy to market route is shut down - it is displaced to another online platform.
Because it is on the Internet, the issue is not limited to one territory. Facebook groups used as clothing auction sites are being used as a platform to sell stolen goods, according to police in New Zealand where the problem is growing.
Auckland police have warned buyers to be wary of purchasing stolen items on invitation-only groups.
Inspector Gary Davey of Auckland Police said: "Police can prosecute people who are reckless when it comes to the circumstances in which they buy goods that are subsequently found to be stolen."
Davey said staff were looking closely at sites where goods, some of which were proven to have been stolen because of reports of thefts, were offered for sale.
"People who buy stolen goods are perpetuating the opportunities for thieves to illegitimately make money out of their criminal behaviour,” he said.
Even if the goods are not stolen, there is an issue with provenance because Facebook was not designed as a sales platform, according to the Citizens Advice Bureau (CAB) in New Zealand which has issued guidance in line with the growing concerns, particularly if the sale is made overseas.
The CAB advice suggests that in-country regulations apply for safety issues where the Facebook vendor is a professional seller, but goes on to suggest that the Internet does not necessarily recognise legal borders and consumer rights beyond in-country jurisdictions – and that means caveat emptor – let the buyer beware.
Because social media sites were set up as just that – social – trying to sell stolen items though them might actually be the undoing of the perpetrator.
This is what happened when an Australian businessman had his treasured Nikon camera stolen on a business trip to Canberra. A throw-away line at a party about using a new website – stolencamerafinder.com led him to be reunited with his prized possession.
This was because the service, developed by a software technician in the UK, uses crowd-sourcing and data hidden in pictures posted online to reunite stolen equipment with its owner. The businessman found images taken with his camera on both Flickr and Facebook and he was able to trace it – purely because images taken while it was out of his possession were posted online.
