By silicon.com, 15 December 1998 00:10
NEWS The suspension of a user from an online auction company for suspected fraud of up to $100,000 has created a clamour for better Internet auction security. Internet auction pioneer, eBay has refused to refund defrauded customers, after user Sonny Stemple allegedly persuaded other users to send money for items he never had. Users have been complaining for several weeks that phantom buyers known as "shillers" or "shielders" - who create a fake online buyer persona to drive prices up for a seller - were artificially manipulating prices. Some users have slammed eBay for not performing background checks or asking for credit card details before allowing people to sign up. But the company itself claims it is impossible for it to screen all users and many says many of its customers claim this is in opposition to the spirit of an Internet trading service. Analysts claim it is not an just an Internet problem - but a problem with auctions in general. Dave Birch, consultant at Hyperion, said: "Most auction houses will tell you the only way of establishing reputation is by knowing everyone who trades, and not taking bids from individuals. Until there's an established standard for rating your reputability in electronic form, it's going to be a problem." James Corsellis, managing director of UK-based online trading service Interactive Collector, said he understood eBay's reluctance to take credit details up front, but commented: "Without a standard to establish reputability you need to rely on credit card authorisation."
In order to post a comment you need to be registered and logged in.
Log in or create your silicon.com account below