Online Trade Fraud: Focuse on Email Hacking

Purpose: This study focuses on the fact that fraud using email, which is a major means of communication in trade transactions, continues to occur. To raise awareness of the email hacking risks, this study suggests practical countermeasures through analysis of fraud that has caused damage and cases of attempted fraud. Research design, data, and methodology: Along with a literature review, this study focuses on successful and attempted email hacking trade fraud based on recent data from KOTRA. Results: According to the analysis, representative types of email-related trade fraud are mainly “new forms of email account hacking” and “existing forms of similar email alteration fraud cases”. Recently, in response to changes in companies' awareness of email fraud, the number of cases has decreased, but caution is required because fraudsters are becoming more detailed and sophisticated in their approach. Conclusions: This paper encourages step-by-step practical and policy alternatives in order to be suspicious of (and to confirm) account change requests based on the changing perception of fraud by email, which is the main means of communication for traders.