Kanyaru, Paul M.Kyalo, Josphat K.2015-11-042015-11-042015Journal of Educational Policy and Entrepreneurial Research (JEPER), Vol.2, N0.3, March 2015. Pp 1-72408-770X2408-6231http://ir-library.ku.ac.ke/handle/123456789/13834Research ArticleThe growth in online transactions is accompanied with an increase in the incidences of fraud. In the online marketplace, fraudsters are using sophisticated malware to take over accounts and commit fraud related activities. At the global level, online fraud is rampant with high financial losses for customers and online merchants. In Kenya, the scope of online fraud is still small, however, the increasing adoption of e-commerce is anticipated to increase fraud related incidences. Based on this, this study reviewed literature on challenges associated with internet fraud and best practices that can be adopted by online merchants. It was shown that the challenges are related to the use of improper theft and security measures by online merchants, the increase of mobile devices and lack of customer awareness of security risks in online transactions. To prevent internet fraud, organizational, consumer, and technical measures have to be adopted by online merchants in Kenya.enE-CommerceInternet FraudE-MerchantsOnline TransactionsSecurity RisksSecurity MeasuresCustomer AwarenessArticle