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eBay Announces More “Progress”, Less Transparency

November 16, 2008 By Jason DeBord

eBay has published an “Important Security Announcement”, which equates to more “progress” and less transparency.  The latest announced change will result in the privatization of bidders identities not only during bidding, but following the close of the auction.

The October 2008 General Announcement can be read here (see ***A Message from John Canfield – Two Important Security Updates***):

***A Message from John Canfield – Two Important Security Updates***

October 28, 2008 | 11:56AM PST/PT

John Canfield
Hi everyone…this is John Canfield, Senior Director for Fraud Prevention Policy. I have two important updates on security initiatives to share with you.

Trusted Selling with Identity Confirmation — Progress Update
Trusted selling with identity confirmation, which we first announced in April, is designed to prevent fraudsters from gaining access to members’ accounts in order to commit fraud on eBay. It adds a new level of security by asking anyone listing an item from an “unknown” computer to confirm their identity.

Last spring, we began to implement this project by noting which computers members typically use when they buy and sell on eBay. Then two months ago, we started testing the identity confirmation process for a small population of users. I’m pleased to let you know that our testing has been successful – we’ve seen a significant reduction in account takeovers, and it’s been a smooth experience for users. We are now expanding this initiative to the entire Community, which should be completed within one to two weeks.

Going forward, if you list from a different computer than you usually use (e.g. a computer at a friend’s house, at the library, etc.), eBay will make an automated call to you to confirm it’s really you attempting to list an item. If you are not available to receive a call, you can instead confirm your identity via Live Chat with our customer support team.

Making Winning Bidder IDs Anonymous
Early last year, we began to anonymize bidder IDs on listings. This change was designed to protect bidders from fake Second Chance Offers and other malicious emails. As I’ve shared before, this initiative has been very successful, resulting in a 90% reduction in this type of fraud.

Today, however, the winning bidder’s ID is currently visible to everyone after the listing ends, and this continues to lead to fake checkout offers and other spam. Consequently, it also leads to unpaid items, as winning bidders who fall victim to these fake emails often send payment to someone other than the seller.

Based on the positive results we’ve seen by anonymizing bidder User IDs, as well as our commitment to protecting all bidders from becoming targets for fraudsters, we’ve decided to extend anonymized User IDs to winning bidders, as well. This change will be implemented sometime this week.

As always, the following information will still be accessible:

* Sellers will be able to view all bidder IDs on their listings.
* All members can click on the bidder ID and view the bidder’s Bid History page, which will detail the categories in which they’ve bid over the past 30 days.
* Feedback pages will show the same information as now – buyer and seller IDs, with comments visible to all.

Thanks for taking the time to read about these updates to improve safety on eBay, and we thank you for your support.

Sincerely,

John Canfield
Senior Director, eBay Trust & Safety

Archive of eBay Announcement Page: LINK

While this policy change may help to curb one very specific type of fraud, it prevents discerning eBay members from detecting and protecting themselves and other members from other eBay violations as well as a multitude of other fraudulent and criminal activity.

More reaction can be found on the AuctionBytes.com forum: LINK

Thanks to Jennifer for the links.

Jason De Bord

Filed Under: eBay & PayPal, News and Events, Policies, Policy Changes, Analysis Tagged With: anonymous, auction, ebay, Fraud, policy, shill bidding, transparency, violation

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