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***Further enhancements to combat online fraud***

21 February 2008 | 09:37AM EST


In November 2006 eBay launched the Safeguarding Members’ IDs project on eBay.com.au for auction-style listings of $250 or more.

This initiative, which replaced bidders' IDs with aliases (such as Bidder 1, Bidder 2 and Bidder 3), helped combat attempts of fraud such as fake Second Chance Offers.

The changes to the way members' IDs are displayed in auctions proved successful on higher priced listings, in fact the volume of fake Second Chance Offers on items of $250 or more has dropped significantly since the introduction of this feature. Despite all efforts, fraudsters have adjusted their methods and now target bidders of less expensive items with fake Second Chance Offer emails.

In an effort to make eBay an even safer place to buy and sell, Safeguarding Members’ IDs has been expanded to include ALL auction-style listings regardless of the item price.

This change will take effect Friday 22 February.

How Safeguarding Members’ IDs works
eBay automatically masks a bidder's User ID so fraudsters can’t tell who is bidding on a listing. Masked IDs cannot be targeted with spoof email. The bid history page displays a feedback score range, giving legitimate members a sense of who is bidding, while protecting them from fraudsters. Sellers can see the actual User IDs of bidders on their listings if they are logged in.

How do fraudsters abuse the information currently available on the site?
Fraudsters gather bid history information from the site to identify User IDs of unsuccessful bidders and combine it with information from other places (like the item page) to send authentic looking emails which appear to offer the same or similar items for sale.

Because a significant number of members have registered an email address that is very close or identical to their eBay User ID, fraudsters send spam emails to bidders using the User ID along with several of the most common domain names (eg userid@hotmail.com.au, userid@yahoo.com.au, userid@gmail.com, etc). Some of those emails reach their target.

When they get these emails unsuccessful bidders may think they are dealing with the legitimate original seller, and agree to send funds in exchange for the item.

How do eBay members get caught out by fraudsters?
It's important to note that fraudsters usually ask the unsuspecting bidder to pay using Western Union or MoneyGram because these methods are hard to trace and there is no recourse or protection if the item is not delivered. NEVER pay for eBay items using these methods.

For information on how to trade safely on eBay and ensure you are protected against online fraud visit the Security Centre.

Regards,
The eBay Trust & Safety team
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