There's an excellent article at today's Salon.com site about the big problem with Online fraud, PayPal's troubles are detailed in particular (AuctionWatch is mentioned, btw!)!
PayPal processes $7 million in transactions a day and has 6.5 million users but because of their problem with identity fraud they are being sued by many upset customers claiming their accounts are locked up, they are experiencing unjustified chargebacks, wrecked reputations and financial ruin.
One business owner stated that PayPal refused to release deposits totaling over $20,000 even after he sent verification information proving that his customers used their own credit cards (rather than stolen ones) to secure PayPal acounts.
So he contacted the FBI and decided to sue, not just to recover the cash in his account, but also for $400,000 worth of lost business.
Credit card fraud is at least three to four times more common online than offline and identity verification is a major culprit.
If you accept credit cards or checks and you want an affordable verification service that will help you cut back on chargebacks try the free demos at www.iverify.com. Try the iV-Caller demo in particular.
The company uses proprietary software to combine the telephone with Internet technology, reducing credit card fraud.
New information about iVerify is that Equifax--one of the world's largest payment transaction and credit reporting companies--just became a partner with iVerify so they're sure doing something right (and eBay uses Equifax). Please note that I do not own the company, I just moderate the message board but given so much bad news about Internet businesses in the news its refreshing to see a dot com technology biz can still make things happen.
Tim Mahoney
Ecommerce Success & Internet Security Board at iVerify.com
posted on February 28, 2001 02:29:17 PM new
To all you sellers out there who are getting frustrated and abused by:
· Non-paying bidders
· paypal charge backs
· Bounced checks
· Fraud problems
· Negative feedback for no good reason (retaliation)
I found out the hard way that safe harbor and FBI don’t do a thing about it, and I signed up for a sitesentury.com, a security company that will do REAL investigations. Check out their site, I signed up for their service and I put their log on all my auctions and the bad guys will think twice before they mess with me!!!!!!! It is like having a security guard by my side protecting me!!! Which car do you thing the thieves like to break-in: one with alarm-on or one without??? That is what the log will do for you.
The investigator already got me some of the money I lost on bounced checks and the bank fee too!!!!!!
Do yourself a favor and check out sitesentery.com
