ENHANCING TRUST IN NIGERIAN C2C E-COMMERCE: A REPUTATION-BASED FRAUD DETECTION SYSTEM

Abstract

The rapid advancement of internet technology has ushered in a new era of opportunities across various domains including economics, social dynamics, and cultural interactions. Its influence resonates globally, permeating nations, communities, institutions, and individuals alike. This digital evolution has given rise to a spectrum of novel concepts such as e-commerce, e-banking, e-governance, and e-learning. Among these, e-commerce stands out as a pivotal arena of industrial innovation. It has emerged as a significant driver of economic prosperity in developed regions like Europe, America, and parts of Asia since the early 21st century. Notably, its growth trajectory in Nigeria and several other African nations including South Africa, Kenya, and Egypt has been striking. The surge of e-commerce in Nigeria can be attributed to remarkable strides in internet and telecommunication services. Platforms like Konga.com, Jumia.com.ng, and Dealdey.com are emblematic of this burgeoning landscape. Online shopping is steadily gaining traction among Nigerian consumers, offering a convenient alternative to traditional retail channels. Consumer-to-consumer (C2C) e-commerce, which predates the internet, has found renewed vigor in the digital age. While large websites now facilitate this model, its essence lies in direct peer-to-peer transactions. In C2C e-commerce, individuals assume dual roles as both sellers and buyers, engendering a seamless marketplace. This framework fosters healthy competition and simplifies the acquisition of otherwise hard-to-find products and services. However, alongside its transformative potential, e-commerce also grapples with challenges, foremost among them being the specter of fraud. According to the Nigerian Inter-Bank Settlement System (NIBSS) data for 2014, there were 1,461 reported instances of electronic fraud, resulting in substantial losses amounting to 6.216 billion naira (N6.216b).