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A dynamic stage-based fraud monitoring framework of multiple live auctions

ABSTRACT

Abstract Monitoring the progress of auctions for fraudulent bidding activities is crucial for detecting and stopping fraud during runtime to prevent fraudsters from succeeding. To this end, we introduce a stage-based framework to monitor multiple live auctions for In-Auction Fraud (IAF). Creating a stage fraud monitoring system is different than what has been previously proposed in the very limited studies on runtime IAF detection. More precisely, we launch the IAF monitoring operation at several time points in each running auction depending on its duration. At each auction time point, our framework first detects IAF by evaluating each bidder’s stage activities based on the most reliable set of IAF patterns, and then takes appropriate actions to react to dishonest bidders. We develop the proposed framework with a dynamic agent architecture where multiple monitoring agents can be created and deleted with respect to the status of their corresponding auctions (initialized, completed or cancelled). The adoption of dynamic software architecture represents an excellent solution to the scalability and time efficiency issues of IAF monitoring systems since hundreds of live auctions are held simultaneously in commercial auction houses. Every time an auction is completed or terminated, the participants’ fraud scores are updated dynamically. Our approach enables us to observe each bidder in each live auction and manage his fraud score as well. We validate the IAF monitoring service through commercial auction data. We conduct three experiments to detect and react to shill-bidding fraud by employing datasets acquired from auctions of two valuable items, Palm PDA and XBOX. We observe each auction at three-time points, verifying the shill patterns that most likely happen in the corresponding stage for each one.AbstractMonitoring the progress of auctions for fraudulent bidding activities is crucial for detecting and stopping fraud during runtime to prevent fraudsters from succeeding. To this end, we introduce a stage-based framework to monitor multiple live auctions for In-Auction Fraud (IAF). Creating a stage fraud monitoring system is different than what has been previously proposed in the very limited studies on runtime IAF detection. More precisely, we launch the IAF monitoring operation at several time points in each running auction depending on its duration. At each auction time point, our framework first detects IAF by evaluating each bidder’s stage activities based on the most reliable set of IAF patterns, and then takes appropriate actions to react to dishonest bidders. We develop the proposed framework with a dynamic agent architecture where multiple monitoring agents can be created and deleted with respect to the status of their corresponding auctions (initialized, completed or cancelled). The adoption of dynamic software architecture represents an excellent solution to the scalability and time efficiency issues of IAF monitoring systems since hundreds of live auctions are held simultaneously in commercial auction houses. Every time an auction is completed or terminated, the participants’ fraud scores are updated dynamically. Our approach enables us to observe each bidder in each live auction and manage his fraud score as well. We validate the IAF monitoring service through commercial auction data. We conduct three experiments to detect and react to shill-bidding fraud by employing datasets acquired from auctions of two valuable items, Palm PDA and XBOX. We observe each auction at three-time points, verifying the shill patterns that most likely happen in the corresponding stage for each one.