JOMC 191.3 Blogging, We the Media and Virtual Communities

November 8, 2005

eBay fraud

Filed under: We the Media

I just wanted to make a quick comment on the “ingenious” reputation management system of eBay (Preece, 72). It’s fairly easy to get around. Although they’ve probably made some changes in the last few years, I wrote about a case of eBay fraud as a reporter in 2002. I got to talk to the head of eBay’s fraud department, which was fun. It turns out a guy would make several small transactions, and build up a good rating. Then, he would place an expensive item on the auction block, sell it, and never deliver. He would then retire that identity, and start all over again. He ended up scamming people out of thousands of dollars. I thought he was pretty smart, but they caught him when a user reported that he sent the money to a PO box. The police went to the post office and the next time the guy came to check his mail, that was it. I wonder if they have a better way to safeguard against this kind of fraud. Here’s an interesting police blotter on how law enforcement and eBay are working together. Here’s a list of marketplace tips eBay provides. The site also has a whole section on “community.”

- Robin

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