[ISN] eBay starts antifraud measures

From: mea culpa (jerichoat_private)
Date: Thu Jan 21 1999 - 08:57:31 PST

  • Next message: mea culpa: "[ISN] HP announces extranet security products"

    eBay starts antifraud measures
    By Sandeep Junnarkar
    Staff Writer, CNET News.com
    January 15, 1999, 7:00 a.m. PT
    Internet auctioneer eBay introduced five initiatives today in an effort to
    reduce fraud, stop the sale of illegal materials, and stymie those who try
    to misuse the site's person-to-person trading system. 
    eBay's antifraud effort will include a program for user identity
    verification, a ban on sellers buying their own items, up to $200 in
    insurance, a policy against "deadbeat bidders," and a feedback forum akin
    to a Better Business Bureau center. 
    eBay will use the services of Equifax to verify user identities for a $5
    fee. Verified eBay User, the voluntary program, slated to start in March,
    will encourage users to supply eBay with additional information for online
    verification. By offering their social security number, driver's license
    number, and date of birth, users will qualify for the highest level of
    verification on eBay. 
    "eBay has zero tolerance for fraud," eBay CEO Meg Whitman said in a
    statement. "We have committed and will continue to commit resources to
    have the most comprehensive programs in order to keep eBay a safe harbor
    for online person-to-person trading." 
    eBay said it has created new mechanisms added to its existing ones to help
    complete successful transactions, research complaints, and work with law
    enforcement agencies to investigate, arrest, and convict fraudulent buyers
    or sellers on eBay. 
    The Feedback Forum will allow registered buyers and sellers to build up
    their online trading reputation. The Feedback Forum provides users with
    the ability to comment on their experiences with another individual. 
    eBay also plans to offer insurance underwritten by Lloyd's of London by
    March. Users will be covered up to $200, with a $25 deductible. eBay and
    Lloyd's said the program will be at no cost to eBay users. 
    For items more than $200 or when either a buyer or seller feels the need
    for additional security, eBay recommends escrow services. With an easy to
    access link to a third-party escrow service, both partners in the deal
    will be protected. 
    Quotes delayed 20+ minutesThe company is also implementing a shill bidding
    policy--where a seller bids on an item with the intent of driving up the
    price of the item without any plans to purchase it. 
    eBay is also implementing a policy against dead beat bidders--those who do
    not honor their winning bid. To help protect sellers, a first time
    nonpayment results in a friendly warning. A sterner warning is issued for
    a second time offense with a 30-day suspension for a third offense and
    indefinite suspension for the fourth offense. 
    eBay also plans to clearly identify which items are in violation of laws,
    statutes, ordinances, or regulations. These items include live animals,
    human relics and remains, bulk email lists, and other items. 
    Susan Grant, an Internet fraud specialist at the National Consumers
    League, told the Wall Street Journal the group gets about 400 complaints a
    month about Internet auction fraud. 
    Subscribe: mail majordomoat_private with "subscribe isn".
    Today's ISN Sponsor: Internet Security Institute [www.isi-sec.com]

    This archive was generated by hypermail 2b30 : Fri Apr 13 2001 - 13:16:36 PDT