Factors influencing the fraud risk in online purchasing among consumers in Perlis

The research intended to provide a deeper understanding of the factors that influence the fraud risk in online purchasing among consumers in Perlis. The adoption of three factors, namely knowledge, security, and product risk, was examined due to their effect on the fraud risk in online purchasing. The design of the research applied the quantitative approach using the primary data. A number of 246 consumers in Perlis involved in the data collection. The reliability and validity analysis outcome indicated that the entire variables’ items were applicable and accepted following the good measurement range. The hypotheses testing was performed using the independent t-test, one-way ANOVA, Pearson correlation, and multiple regression, which expose the acceptance of the alternative hypothesis. The finding of ANOVA stated that only the highest education level has a significant difference in the event of fraud risk in online purchasing while the product risk showed a significant correlation using the Pearson correlation test. Otherwise, all variables, namely the knowledge, security, and product risk, indicated significant influence in the multiple regression analysis. However, only knowledge and product risk generated the positive influence. The security, on the other hand, influences the fraud risk in online purchasing negatively.