A Real-Time Self-Adaptive Classifier for Identifying Suspicious Bidders in Online Auctions

With the significant increase of available item listings in popular online auction houses nowadays, it becomes nearly impossible to manually investigate the large amount of auctions and bidders for shill bidding activities, which are a major type of auction fraud in online auctions. Automated mechanisms such as data mining techniques were proved to be necessary to process this type of increasing workload. In this paper, we first present a framework of Real-Time Self-Adaptive Classifier (RT-SAC) for identifying suspicious bidders in online auctions using an incremental neural network approach. Then, we introduce a clustering module that characterizes bidder behaviors in measurable attributes and uses a hierarchical clustering mechanism to create training datasets. The neural network in RT-SAC is initialized with the training datasets, which consist of labeled historical auction data. Once initialized, the network can be trained incrementally to gradually adapt to new bidding data in real time, and thus, it supports efficient detection of suspicious bidders in online auctions. Finally, we utilize a case study to demonstrate how parameters in RT-SAC can be tuned for optimal operations and how our approach can be used to effectively identify suspicious online bidders in real time.