SCHOOL OF MANAGEMENT & BUSINESS (SOMB)

PROGRAM: DIPLOMA IN BUSINESS ADMINISTRATION

COURSE NAME: BUSINESS ETHICS

COURSE CODE: BUS 3033

SEMESTER: 4

CASE STUDY: ONLINE SHOPPING FRAUDS

NAME: UMA MAGESWARAN NADARAJAN

ID NUMBER: 1231183012

PREPARED TO: MS. FAUZIAH DIN

SUBMISSION DATE: 25/9/2019

INTRODUCTION
Online shopping scams involve scammers pretending to be legitimate online sellers, either
with a fake website or a fake ad on a genuine retailer site. Fraud is an unethical activity that
has purposes to harm other parties (Hall, 2013). Here, researcher what to compile the fraud
practice that possibly happen in online transaction through Instagram. Instagram is a social
media that developed in 2010. Instagram allow us to share pictures, make a comment, and
post a like sign to other picture collections. Online transaction trough social media is a media
to facilitate buyer and seller in Accounting cycles. Starts from ordering, selling, produce to
billing activity. Fraud in this research will describe from the Supplier, Producer and
Customer perspectives. Customers start to look for the media that can make their transaction
in daily activity as easy as possible.On0line transaction in selling and buying product is the
best two that become the trigger of social media to facilitate that activity. Customers
expecting for a transaction that require easy procedures, so that they might get the product
they have choose from the social media with the best value, effortlessly. Meaning to state this
is the concept of, if customer might get the product without the obligation to pay it, no matter
how low is the product’s value, they will fight for it. Generally, transaction is an economic
activity or financial activity that require two parties that exchanging thing happily.
Transaction can be the exchanging activity of product or service that has economic effect to
business. In exchanging product or service, must benefit both seller and buyer, and record in
a document [Accountable]. Online is an activity that using computerized device and
connected through internet. So that, online transaction trough Instagram is to browse the
online store to buy or sell that using a social media application called as Instagram.
BACKGROUND

SINGAPORE: Police on Tuesday (May 14) warned of scams involving fake Lazada
campaigns which offer prizes, saying victims have been cheated of at least S$14,000 in total.
At least 14 such cases have been reported since January. “In these cases, scammers would
impersonate the victims’ friends or followers on Instagram," said the police in a news release.

"They would then ask the victims for their contact numbers and photos of their credit or debit
cards on the pretext of helping them to sign up for a Lazada campaign to win money.
"Victims were also asked for the one-time passwords to their bank accounts, and later
realised that unauthorised transactions were made, the police said. They added that some of
the fake Lazada campaigns were named Lazada Campaign, Lazada Raffle, Lazada Gift
Money and Lazada Lucky Draw.

The online retailer has clarified that it is "in no way associated with these scams". "Customer
safety is our top priority," a Lazada spokesman said. "All our campaigns and contests are
only held on our website, app and social media accounts. "We would like remind customers
to only conduct transactions on our platforms; never via third-party channels.

The police reminded members of the public not to give out personal information such as
credit card and bank account details, and to beware of unusual requests from social media
contacts and strangers. “Be wary of claims that you have won a prize, especially if you have
not participated in any campaign or lucky draw," they added.
SOLUTION

Be alert to the fact that scams exist. When dealing with uninvited contacts from people or
businesses, whether it's over the phone, by mail, email, in person or on a social networking
site, always consider the possibility that the approach may be a scam. Remember, if it looks
too good to be true, it probably is.

Know who you're dealing with. If you've only ever met someone online or are unsure of the
legitimacy of a business, take some time to do a bit more research. Do a Google image search
on photos or search the internet for others who may have had dealings with them. If a
message or email comes from a friend and it seems unusual or out of character for them,
contact your friend directly to check that it was really them that sent it.

Do not open suspicious texts, pop-up windows or click on links or attachments in emails –
delete them: If unsure, verify the identity of the contact through an independent source such
as a phone book or online search. Don't use the contact details provided in the message sent
to you. Don't respond to phone calls about your computer asking for remote access – hang up
– even if they mention a well-known company such as Telstra. Scammers will often ask you
to turn on your computer to fix a problem or install a free upgrade, which is actually a virus
which will give them your passwords and personal details.

Keep your personal details secure. Put a lock on your mailbox and shred your bills and other
important documents before throwing them out. Keep your passwords and pin numbers in a
safe place. Be very careful about how much personal information you share on social media
sites. Scammers can use your information and pictures to create a fake identity or to target
you with a scam.
REFFERENCE

https://www.channelnewsasia.com/news/singapore/lazada-scam-fake-prizes-victims-cheated-
singapore-police-11532348

http://www.joams.com/uploadfile/2015/0602/20150602121326620.pdf

https://www.scamwatch.gov.au/get-help/protect-yourself-from-scams