Understanding Fraud in Online Property Auctions: A Study on Mitigation Strategies in Malaysia

Tan, Ying Wen (2025) Understanding Fraud in Online Property Auctions: A Study on Mitigation Strategies in Malaysia. Final Year Project (Bachelor), Tunku Abdul Rahman University of Management and Technology.

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Abstract

This research investigates the evolving landscape of online property auctions in Malaysia, particularly focusing on the complexities and challenges posed by fraudulent activities within this digital marketplace. The transition from traditional auction methods to online platforms has significantly transformed real estate transactions, enhancing accessibility and efficiency for diverse stakeholders, including buyers, sellers, and financial institutions. Despite these advancements, the rise of online property auctions has also been accompanied by a notable increase in fraudulent practices, which undermine the integrity of these platforms and pose risks to participants. The study aims to achieve three primary objectives: first, to examine the landscape of online property auctions in Malaysia, including prevalent platforms and practices; second, to identify the various types of fraud occurring within these auctions; and third, to explore effective mitigation strategies to combat fraud. A quantitative research methodology, utilizing the Statistical Package for the Social Sciences (SPSS), was employed to analyze data collected through surveys administered to relevant stakeholders. The research emphasizes the need for heightened awareness and proactive measures, such as due diligence and regulatory compliance, to ensure secure transactions and protect stakeholders' interests. Findings reveal a range of fraudulent techniques, including bid manipulation and misrepresentation of property conditions, alongside recommendations for improving transparency and accountability in online property transactions. This study contributes valuable insights aimed at enhancing consumer protection and market efficiency, ultimately fostering a safer and more trustworthy environment for all participants in Malaysia’s online property auction ecosystem. Through this comprehensive exploration, the research underscores the importance of collaboration among stakeholders to strengthen the resilience and reliability of online property auctions, paving the way for sustainable growth in Malaysia's real estate sector.