http://www.news.com/News/Item/0%2C4%2C31001%2C00.html?dd.ne.tx.fs7.0115
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.
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Received on Thu Mar 11 17:05:02 1999