Personal Finance

Guarding against rising online trading scams

Amber Michael (right) and Tako Derrick Akebe (left) who were accused of defrauding Mr Tuyen Huy Nguyen Sh4.1 million through the online sale of donkey hides. A lot of fraud takes place online, as does trading in harmful or illegal substances and trade in counterfeit goods. FILE PHOTO | PAUL WAWERU | NMG
Amber Michael (right) and Tako Derrick Akebe (left) who were accused of defrauding Mr Tuyen Huy Nguyen Sh4.1 million through the online sale of donkey hides. A lot of fraud takes place online, as does trading in harmful or illegal substances and trade in counterfeit goods. FILE PHOTO | PAUL WAWERU | NMG 

Online businesses have become the norm of commerce today whereby one sets up his business and trades largely online, whether or not he has a physical presence.

Such form of business is advantageous as it gives consumers a wide range of services, for example, at the click of a button a consumer is able to purchase goods from a foreign retailer.

For the business person, online presence allows access to a large market and it also minimises establishment costs. It is not a requirement to have a physical presence when doing business.

A unique feature of e-commerce is that customers can make direct orders for goods or services. Customers can download some products like books and music at the click of a button.