Romanian Fraudster Vladuz Arrested

There’s been some good news out of Romania  – cyber-criminal Vladuz has been arrested by the Romanian General Directorate for Combating Organized Crime. He had gained a measure of notoriety in the past year for numerous unsuccessful attempts to defraud members of the eBay Community.

This arrest came about because of great work between the Romanian Directorate, the US Secret Service, the FBI, and eBay’s global fraud investigation team, all of whom were directly involved.  You can read the press release here – it’s an excellent example of how eBay works with law enforcement around the world to bring to justice those who try to harm the Community.

More Info About the "eBay Security News" Announcement from John Canfield

Hopefully you saw the recent announcement from John Canfield about some new security measures we're putting in place to combat the fraudsters who try to break into eBay member accounts (usually after a successful phishing attempt). You can read the whole text here, but in a nutshell, we're going to start noting which computers members typically use to sell and buy. Then, around June, when a seller goes to list an item, we'll make sure they're using a trusted computer. If they're using one we've never noted before, we'll take a step or two to confirm their identity. This will usually be done via an automated phone call to a registered phone number. (As John mentioned, we hope sellers will take time to update their registered contact information and consider registering a cell phone as a secondary number - just in case we need to confirm their identity while they're on the road.)

This type of authentication is being used by other online industries, as well. For example, I need to answer security questions every time I access my bank account online from a computer the bank doesn't "recognize." And I know several friends who've received phone calls from their banks to verify their identity when they used their credit cards for an unusually large amount.

We've been doing some checking around our forums, and the reaction to the news has been pretty positive - a lot of "this is a step in the right direction" and "glad eBay is doing something about security"-type comments. We also saw some good questions, so we sent them over to John Canfield so he could provide some more detail.

John was part of this morning’s Town Hall event, and answered a few questions about this initiative – the archives will be available soon at www.ebay.com/townhall if you want to listen in.  His team will also be hosting an online workshop on May 6th to go over the program in more detail - stay tuned to the Announcement Board for the exact time. And without further ado, here are John's responses:

Q: What if I use multiple computers for my business - will I have to verify my identity every time I use one or the other?

A: We will definitely support multiple computers. During this information-gathering stage (now through June, roughly) we'll be able to tell which computer(s) you typically use to buy or sell, and as long as you're using one of these, you won't need to verify your identity. You also will be able to access multiple, different accounts from the same computer (such as in the case where a business has multiple IDs).

Q: How will you track which computer I'm using?

A: We generate a unique ID that identifies the computer you've used to connect to eBay. This unique ID is stored on your computer using cookies and Flash objects so that the next time you visit eBay, we're able to confirm that you're using the same computer. 

This unique ID doesn't include any personal information, such as your email address or eBay transactions, and won't be shared with anyone else.

Q: Will people who do not have a cell phone, or other alternate number that can be used when away from home, be able to verify their identity in some other way?

A: If you're away from your normal computer, you will be able to enter the telephone number where you are as part of the identity confirmation process. However, you'll also need to to answer your secret question to do so, as part of an additional security step. If you're not able to provide another number (for example, because you don't have a phone handy), you can use our Live Chat function so that one of our Customer Support Reps can verify your identity.

Q:  Why not just use a "challenge question" instead of phone calls?

A: Some businesses use challenge questions, some use phone calls, and some use a combination. We chose the phone method because we felt it provided the right level of convenience and security for the eBay Marketplace.

Q: What about ISPs that assign a different IP address for each session, or those that change the IP address each time the modem is rebooted?

A: We use a number of different variables to note what computer you buy and sell from. You won't need to verify your identity as long as you're using your normal computer(s), even if your IP address changes.

Q: How will listings submitted through a 3rd party listing service be handled?

A: You should not be affected unless you need to authorize 3rd party access to your eBay account. During that process, you will need to go through identity verification if we do not recognize that computer.

Q: Are you going to put similar security measures on bidders?

A: Right now this will only affect selling. But depending on the results of this initiative and changing fraud patterns, we may apply this program to other eBay activity in the future.

Q: Won't bad guys just change the phone number as soon as they take over an account so they then receive the phone call?

A: If we see that you've just changed your contact details (or basically any time we feel that the phone number may not actually be the seller's), we will ask you to answer your secret question as an additional security measure. This will prevent fraudsters from changing your account details and using the new info to confirm an identity.

Digital Downloadable Goods...your questions answered

Brian Burke, eBay's Director in Trust & Safety who manages the Feedback system, recently announced that Digital Downloadable Goods must be listed using the Classified Ad listing format effective March 31st.  This policy affects items like eBooks, MP3 files, content in PDF format, recipes, etc. -- anything that is "shipped" to a customer via email or download link. These items cannot be listed any longer as auction-style or fixed price listings.

The Classified Ad format is a lead-generation tool which gives sellers an "ad" that shows up in default Search results for 30 days. Currently, the only accepted category is Everything Else > Informational Products. (To learn more, read Help: Advertising with Classified Ads.)

The reason for this change is the concern about Feedback manipulation (or artificially padding a member's feedback score). Since Classified Ad format listings are not transactional, no feedback is exchanged between buyers and sellers and no feedback manipulation can occur.

Members on the forums, as well as callers into Griff's eBay Radio show this week, have been asking some good questions about this change. The Chatter team made some time with Brian Burke to get additional clarification and insights. Our Q&A with Brian follows:

Question: Why is eBay requiring sellers of digitally downloaded goods to list their items in the Classified Ads format?

Answer: Most items that require digital delivery, once created, can be very easily replicated. This ease of replication creates the opportunity for sellers to list thousands of the same item in an attempt to manipulate the Feedback system. It also creates a perception that even legitimate sellers of Digital Goods are manipulating the Feedback system. This dynamic -- real and perceived -- undermines trust across the entire marketplace.

We understand that digital goods, by themselves, are not the cause of Feedback Manipulation, but clarity of policy and ease of enforcement require all digitally downloaded items to be offered via the Classified Ads format.

Safer Payments...PayPal Explains

There have been a few questions about some of the changes around Safer Payments that were announced on January 29th at the eCommerce Forum.  PayPal Director of eBay business in North America Monroe Labouisse -- who also participated in our last Town Hall -- helped to explain more about the goals for the Safer Payments initiatives on the PayPal Blog.   Regarding item holds, Monroe says,

" Safer Payments, as Jim described, requires some sellers to offer safer payment options that we know buyers trust – such as PayPal or major credit cards.  Second, sellers should understand that only a very small percentage of transactions – and I can’t emphasize enough the words very small – may result in funds being held by PayPal."

There's a lot of other good information in his article  -- I encourage you to read it.

“Psst! Wanna Buy This Item Outside Of eBay?”

Remember that Seinfeld episode where George concocts a fake charity, in order to wriggle out of buying holiday gifts for his co-workers? Instead of buying them gifts he claims that a donation has been made in their name to "The Human Fund" (with the slogan "Money for People"). The holiday season and the first few weeks of the new year might bring out the best in most people, but for fraudsters, it's a time to bring out their worst scams.

One such scam eBay members should watch out for is an offer to buy or sell listed items outside of the eBay website (instead of buying "on-eBay," which means bidding on or buying the item on eBay, and then paying through the eBay Checkout process). Going outside of eBay to buy or sell an item listed on eBay is worse than falling for an old, legendary scam like "Psst! Wanna buy the Brooklyn Bridge?" It's like going down a dark alley to settle the transaction with your buyer or seller. You might find your money or item taken, with nothing to show in return. It's an unsafe and unprotected way of doing business.

On the other hand, completing the transaction on eBay (and with PayPal) is safe, because eBay has many buyer and seller protection programs, such as the Purchase Protection programs and Seller Protection programs to protect you if something goes wrong.

Fraudsters will attempt to lure you off the eBay site with Fake Second Chance Offers
Recently one of our members (let's call him Robert) recently bid on an item that he really wanted, but didn't win. Shortly after the listing ended, he received an email in his personal email inbox that looked something like this:

"I am the seller of the item you recently placed a bid on: Hoover SteamVac F7425-900 Shampooer Steamer. The winner got rejected due to security reasons. Your last bid price is taken into consideration. If you are interested to buy it please email me at myemailaddress@aol.com and include your name, address and eBay ID. Please contact me at myemailaddress@aol.com with your response, either yes or no."

It seemed too good to be true, but Robert contacted the "seller" anyway. Robert thanked him, stated that he did still want the steamer and agreed to pay using the "seller's" preferred payment method, Western Union. He sent him $185 through Western Union. 

You can guess where this story is going. Robert didn't get the steamer, and ended up losing his money.

Another common method a fraudster might use to lure people "off-eBay" is by including an email address in their listing, telling buyers to contact them directly for a "better deal."

If you're faced with a situation like Robert's here are some tips to avoid the errors of judgment that he made:

• Do not use Western Union for eBay items. You will NOT be protected. Western Union is not an accepted payment method on eBay because it is unsafe when paying someone you don't know.
  • Check out a really creative page our friends in eBay Australia have come up with for tips on how to spot fraudsters using Western Union to lure you into an unsafe transaction.

• Ask Seller a Question – Sellers, beware of buyers asking you to contact them about a transaction at a personal email address instead of using the Ask Seller a Question feature.
• Report off-eBay offers to us – Lastly, if you receive an offer to to buy or sell a listed item outside of eBay, let us know about it! Here's how to contact us to:
  • Report an outside offer from a seller
  • Report an outside offer from a buyer
• Confirm all Second Chance Offers in My Messages – In fact, make sure you check My Messages for ALL communications from your buyer or seller. If it's a genuine email, you should see a copy of it in My Messages.

Lastly I encourage you to take the Buying Safely tutorial and spend some time in our newly revamped Security Center. There are some great tips in there for both new and experienced buyers alike.

Don't Miss The Last Town Hall of 2007

I can hardly believe there's only about a month left in this year -- how time flies! Well, tomorrow's Town Hall with Bill Cobb, President of eBay North America, at the helm will be your last chance this year to ask live questions to our senior execs. So think about what's on your mind, and call in your questions.

Bill and the Town hall panel will be taking your questions from 2:00 pm -- 3:30 pm (Pacific Time) tomorrow, November 29th. During the event, dial toll free -- 1-877-474-3302 -- to talk to them LIVE on the air! You can even email your question in advance at TownHall@ebay.com. Check out the Town Hall page for more details.

As usual, I'll be updating this post with photos during the event, so come back tomorrow at 2:00 pm (Pacific Time). Hope to "see" you there!

And we're off!! Here's Griff and Bill Cobb conferring a few minutes before the Town Hall began:

Click on the link below to see more pictures from the Town Hall. And if you want to listen to a recording of the Town Hall or to read a transcript, keep an eye on the Town Hall Archives page -- it should be up there in a few days.

Safety tip: "Passwords are like underwear...

...change yours often."

Did I get your attention? GOOD!

As the guy in charge of Trust & Safety messaging, you might say my job is an uphill battle.  Safety messages are, to be blunt, boring. (This is also one of the reasons why we're making our Security Center friendlier and more inviting.)

Most serious content on the vitally important subject of password security (including eBay's Help page, I'll admit) reads like mom's admonishment to "eat your vegetables" or "clean up your room." We roll our eyes and inwardly groan, "Not another litany about passwords...I know, mom! I KNOW!!"

We often feel like the messages are for someone else. We might even feel a bit patronized by them. "Of COURSE I use strong passwords, duh! My passwords are NOT my birthday, my pet's name, my favorite sports team, or the word 'password123,' so what could possibly go wrong?" we say.

Well, plenty.

We can thank the University of Wyoming for taking the subject of password security out of the realm of broccoli and room cleaning. Evidently someone there knows how to grab the attention of the notoriously capricious student mind. Heck, introduce underwear into the conversation – that time-honored, giggle-inducing topic we learn to love in kindergarten – and you make even the most apathetic of users sit up and read. We all are kids at heart, after all.

The picture is from U-Dub's brilliant page on Using Strong Passwords. Once you're done chuckling over the underwear analogies, you'll find that the information is pretty darn serious.

How fast can someone guess your password?
We all know that the bad guys behind phishing and identity theft scams are out to steal our passwords, but thinking that they're hunched over their computers trying out different combinations manually to arrive at our passwords is wrong.

These crooks write software programs that can "guess" passwords far more easily and quickly than you might think. Even desktop personal computers have now become powerful enough that they can process 100,000 encryption operations per second. And here's a sobering statistic: according to the University of Wyoming, if your password has 5 characters and uses only lower-case letters, it can be cracked in under 2 minutes. If it's 6 characters, it takes a bit longer, but it can still be cracked in under an hour!

The good news is that the longer and more complex your password is, the harder it gets for these rogue software programs to even come close to cracking it.

For instance, if you have an 8-character password that uses a combination of upper and lower case, it will take 17 years of computer processing to crack that password. If you add just one more character to your password, you're significantly upping the ante – the University of Wyoming says that it will take over 800 years to crack a 9 character password made up of upper and lower case letters. And if you throw numerals into the mix as well, the rogue programs will have to grind away even longer.

Is your password strong?
eBay has technology that detects whether your password is "strong" or not. If you have a password that our technology identifies as prone to being cracked by known patterns used by password-guessing tools, we present an additional layer of authentication to prevent your password from being broken. Remember how sometimes you see a combination of squiggly letters and numbers when you're signing in to your account? A password-guessing program can't recognize those characters, but a person – i.e. you – can. Despite this additional layer of protection, I'd still say that everyone should change their passwords often, at least every 30 to 60 days.

So here are some tips I urge you to use:

1. Read the University of Wyoming page and chuckle over the underwear references (or frown and say "Tsk! tsk!", if you're a mom).
2. Carefully read the serious information about creating a strong password.
3. Read eBay's Help page, as well.
4. Visit our remodeled and friendlier Security Center for more useful information on staying safe online.
5. Review all your passwords and change them frequently.

Otherwise, you may end up getting a password wedgie.

Pictures from Today's Town Hall with Bill Cobb

If you missed listening to last Friday's Town Hall with Bill Cobb, President of eBay North America, you can still hear a recording of the event or read a transcript on the Town Hall Archives page in a few days. Meanwhile, take a look at some pictures from the event.

For Friday's Town Hall, we had live participation not only from people who called in on the phones and sent in their questions via email, but also from the newest members of the Voices of the Community program, who were in San Jose last week. You can see some of them in the foreground in this picture:

A Good Buying Experience is the Best Holiday Gift You Can Give Your Buyers

***Update on 2/11/08: We are adjusting the processes noted in this post. Existing restrictions that limit sellers to a percentage of sales will be lifted. For more information about the seller non-performance policy, please read our Frequently Asked Questions.***

Last time I spoke to Lynda Talgo, Senior Director of Global Policy Management in Trust and Safety, she answered some of the most common questions our Community had about our Seller Non-Performance (SNP) policy. This policy now considers the number of negative and neutral Feedback ratings a seller has received in the last 90 days, along with Item Not Received claims. Sellers who have a greater than 5% buyer dissatisfaction rate are subject to new enforcement actions. (Read the policy for more details.)

In this latest letter, Lynda provides some tips and “best practices” that sellers may want to pay special attention to during the holiday season.

Lynda's message to sellers can be summed up this way – “Build positive relationships with buyers.”

                                                                     ****

I’m back to offer a number of tips to help sellers ensure they’re satisfying their buyers on eBay. For many sellers, these will just be a review, since the vast majority of our sellers meet or exceed their buyers’ expectations.

This list combines the best advice from teams around eBay, such as Customer Support, Seller Development, and PowerSeller Support.

• It doesn’t hurt to “over communicate” with your buyers.
  • Let them know you’ve received their payment.
  • Send detailed shipping information, such as tracking numbers, or the date you plan to ship the item.
  • Send a follow-up e-mail to check that your buyers have received their item and have had a positive experience.

• Remain positive and professional in all communications with buyers. There is nothing like a positive attitude to soothe ruffled feathers!

• Follow up on all buyer complaints immediately. Make sure that all buyer complaints are addressed promptly, and make every reasonable effort to satisfy the buyer. Most buyers will not leave negative or neutral feedback until after they have given the seller the opportunity to fix the problem. The longer it takes to resolve a problem, the harder it will be to turn that into a good experience for the buyer.

• If you do get a negative feedback, the first thing you should do is contact the buyer, and find out what you can do to address the problem. If you are able to satisfy the buyer, and if the buyer agrees, you can use the Mutual Feedback Withdrawal process. If the buyer is still unhappy, and doesn’t want to use the MFW process, be sure to be professional in your reply to the negative feedback. One way some sellers make their buyers happy is to leave them positive feedback as soon as they have paid for the item; this sets a nice tone for the overall transaction.

• Be accurate in your listing description and honor your selling terms. Make sure your item description and terms of sale are clear and accurate. And don’t “change horses in midstream” – honor those terms after the listing ends.

• Have a customer service infrastructure in place. PowerSellers and high-volume sellers should consider offering phone support for buyers.

• Build a reputation for yourself in the categories in which you sell. Share your knowledge as an expert and build buyer loyalty. Create an eBay Blog, write Reviews and Guides on the subject, or contribute to the eBay Wiki. You can also provide guidance to other sellers (and, of course, buyers) by answering their questions in the Community forums.

• If a buyer does not pay, file an Unpaid Item dispute. In cases where buyers do not respond to the dispute, eBay can remove feedback left for the seller.

• Be crystal clear on shipping costs and times. Don’t promise anything in your listings that you may not be able to deliver due to 3^rd party arrangements. Plus:
  • Remember; shipping and handling is meant to represent actual cost to ship and actual cost of packing materials – nothing more.
  • List actual number of days to deliver rather than “business days” to avoid buyer confusion. Many buyers assume that, because eBay’s website is accessible 24/7, every day is a business day! 
  • When shipping internationally, use a shipping service that offers tracking numbers.

• Respond to all Item Not Received/Significantly Not as Described disputes. Prompt response, plus the willingness to work with the buyer through the dispute process, can turn a bad situation into a positive one.

• When something goes wrong, fix it. Good businesses are always looking for ways to be more efficient and make processes work more smoothly. Think of a problem as an opportunity to make an improvement that will pay off for all your future transactions.

Above all, be professional! Sometimes things go wrong – there’s no avoiding that. But if you stay friendly and helpful, and take responsibility to fix the problem, your buyer is much more likely to stay happy, and come back.

Shop Victoriously... and Safely!

I'm John McDonald from eBay's Trust & Safety team. With the biggest shopping season of the year right around the corner, it's more important than ever that internet users – on eBay and off – stay safe when they're on the internet.

I'll be blogging here every couple weeks with important safety tips, as well as news about advances we're making at eBay and PayPal to help the marketplace stay safe. 

Feel free to share my blog posts with your friends and family – safety is everybody’s business, so spread the word!

This week, I'd like to share some positive developments with you related to Phishing emails and also bring you up to date with what we're doing to keep eBay buyers and sellers well-informed about the recent spate of product recalls.

1) eBay, PayPal and Yahoo! are partnering to reduce dangerous Phishing emails
eBay, PayPal and Yahoo! have joined forces to reduce the number of phishing emails that eBay and PayPal members get. All emails from eBay and PayPal have a digital signature (a bit of code that spammers can’t replicate).  Yahoo! Mail will now check all emails claiming to come from eBay or PayPal for this digital signature. If you use Yahoo! Mail for your eBay or PayPal activity, you will receive only genuine email from eBay and PayPal in your inbox, because authentic emails will have the correct digital signature.  However, a phishing email that is pretending to be from eBay won't have the digital signature, and so Yahoo! Mail will automatically prevent it from reaching your inbox. This is a huge victory in the ongoing battle against phishing.

For now, this effort will help only our members who use Yahoo! Mail, although we hope to form similar partnerships with additional ISPs in the future.  (Read more about this project on PayPal's blog. )

Speaking of phishing emails, remember these important safety tips:

Please -- don't get Phished! An email from your bank, PayPal, eBay or another institution that asks for you contact information or for your immediate response is fishy – or possibly PHISHY!  Here are some steps to take:

1. Stop.  Don't rush to reply or take action – even if the request is really urgent sounding.
2. Look. Read the text several times, and ask yourself why this information or call to action is necessary.
3. Check. Check My Messages for an eBay email, or contact PayPal customer support. 
4. Forward.  Forward any suspicious emails to us at spoof@ebay.com and spoof@PayPal.com.

2) Shopping safely – Toy Recalls
If you read our General Announcement Board regularly, you've noticed a number of U.S. Consumer Product Safety Commission (CPSC) recalls lately. We want to make sure our Community stays safe, and doesn't buy or sell items that could pose a health or safety hazard. As a service to our Community, we announce toy recalls or major recalls that could affect to buyers and sellers.

One way we're working to increase our Community's awareness about eBay's Recalled Items policy is by including links on various product category pages, such as Toys & Hobbies and Baby. You can see a bunch of helpful resources on the bottom right of the category page, under "Category Community Links." We provide notices to sellers when they are listing items that may be part of a major recall. We also have links to the Recalled Items policy and other resources on the Toy & Hobbies Discussion board.

Finally, our Security and Resolution Center (which you can find at the bottom of most eBay pages) also has one-click access to the CPSC, making it easy to get helpful safety tips directly from the CPSC. On the CPSC site, consumers can also access a searchable database of recalled products, and sign up to receive email notifications of newly recalled products.

That's it for now.  Until next time, Shop Victoriously – and Safely!!

Lynda Talgo of TNS answers SNP questions

***Update on 2/11/08: We are adjusting the processes noted in this post. Existing restrictions that limit sellers to a percentage of sales will be lifted. For more information about the seller non-performance policy, please read the Frequently Asked Questions.***

Unless you've been on vacation the last two weeks (and if you were, welcome back!), I probably don't need to tell you that SNP is an acronym for eBay's Seller Non-Performance policy, a longstanding policy which has had a lot of new attention since August 13. That was the day Senior Vice President Philipp Justus told the Community about our heightened attention to SNP.

As a part of our efforts to improve the buying experience, eBay is focusing on sellers whose recent non-positive feedback and item not received activity put them in the bottom 1% of all sellers. We are paying close attention to this group because they generate fully 35% of all the bad buyer experiences on the site. 

The reason why these efforts are important is that our research has found that buyers who have a bad experience with an eBay seller tend to buy much less—or even not at all—from other eBay sellers afterward.  By targeting this 1% population, our aim is to make a more active and vibrant marketplace for the other 99% of eBay sellers.

Unsurprisingly, Philipp's letter has triggered a lot of discussion and emails.  Our sense is that Community members agree with our efforts to take action against this group of sellers -- sellers and buyers both benefit from a more trustworthy marketplace.  Since beginning enforcement, many sellers have had questions about enforcement and how they can make sure their buyer satisfaction rates remain in compliance with the SNP policy.

We took some of the Community's most common questions to Lynda Talgo, Senior Director of Global Policy Management in Trust and Safety.  Lynda's been one of the thinkers/implementers behind these targeted SNP enforcement efforts, and she and her team have been working hard to help sellers understand SNP.   Lynda's answers to some of the most common questions we're hearing are below.

                                                                * * *
Q: Can a seller get restricted based on only one negative or neutral feedback?

A: No, the intent of our new SNP enforcement is to focus on sellers with a pattern of buyer dissatisfaction, and a seller would never be restricted based on a single negative or neutral feedback.   

Q: What factors do you consider when restricting an account?

A:  We look at negative and neutral feedback activity and Item Not Received rate to determine level of buyer dissatisfaction, and we also use sales volume to determine which restriction to use.  Let’s take a look at each of these in detail.

Feedback:  We look at unique negative and unique neutral feedback activity in proportion to a seller’s total selling feedback. 

Item Not Received:  We look at the rate of INR (Item Not Received) claims in proportion to all selling transactions.

Detailed Seller Ratings:  We are not currently using Detailed Seller Ratings, but we expect to in the future. We will continue to focus our enforcement on a very small subset of the overall selling community.  Please stay tuned...

There are two thresholds we use to determine which restrictions are most appropriate.  Most sellers who fall into a category of SNP enforcement are there due to feedback rates, so I’ll use those in my examples. 

Greater than 5% buyer dissatisfaction rate:  A seller must have more than 5% negative and neutral feedback, as a seller, over the last 90 days to qualify, and must also receive a minimum of two negatives from unique buyers in the past 90 days. 

Greater than 10% buyer dissatisfaction rate:  A seller must have more than 10% negative and neutral feedback, as a seller, over the last 90 days to qualify, and must also receive a minimum of three negatives from unique buyers in the past 90 days. 

There are different restrictions (described below) for buyer dissatisfaction rates of greater than 5%, and greater than 10%, and for low-volume sellers.

Q: Are you now considering a neutral a negative? If so, why continue to have neutral feedback?

A:  No, it’s more accurate to say that we treat neutral feedback as not positive.  For instance, neutral comments alone do not trigger an SNP action.  There is a negative feedback threshold of two which neutral comments do not count towards. 

I understand the concern among some members about counting neutrals in SNP calculations.  Generally speaking, however (and we’ve done a lot of research to prove this), a neutral does reflect an unsatisfactory buyer experience. There are exceptions, of course, but the vast majority of neutral comments indicate an issue.  We felt that leaving neutral comments out of the calculation would mask a significant part of the bad buyer experience problem.

We continue to have neutral feedback because it’s helpful information for buyers to read and review when they are evaluating a seller.  The main purpose of the feedback system is for buyers and sellers to be able to evaluate each other – and neutrals, similar to the Detailed Seller Ratings, provide additional information to buyers and sellers.

Promoting Respectful Communications Online

A big reason why I came to work at eBay are the Community values that Pierre placed at the heart of the company from the beginning. We all carry them around on our badges all day, and they're even painted on the walls around here, so you know we take them seriously.  #1 on the list is "We believe people are basically good."  I think that eBay can be viewed as a huge sociological experiment to test that hypothesis, and we have demonstrated again and again that it is true.  Successful transactions outnumber problems by a factor of more than a hundred to one on eBay, and that's pretty strong evidence to back up Pierre's original contention. (I've written about this topic on my personal blog as well.)

That said, there are some hooners out there who, for one reason or another, are driven to treat others (be they transaction partners or fellow posters in the discussion forums) disrespectfully. Believe you me, I have read some dispute threads that would singe your eyebrows, they're so bad. Why people are motivated to talk to complete strangers this way continues to mystify me, particularly when their transaction partners have the ability to publicly rate and comment upon their behavior through the feedback system.

The ugly mask of anonymity
I think it has something to do with the anonymity of the internet. Individuals type things into emails that they'd never say face-to-face, probably because they aren't thinking about the other side as a real person, and they are insulated from the reactions their comments elicit. Also, people are quick to jump to conclusions about the other side (they're a criminal, they're a liar, etc.) and they don't take the time to connect with their transaction partners on a friendly level -- they just jump right in to the accusations and threats, as opposed to saying "Hi, how are you?  My name is Colin..." or the other things we'd say if we met a stranger face to face.

This issue isn't unique to eBay and PayPal, of course. The blogosphere has been wrestling with this issue for some time. Earlier this year the writer of a popular web column, Kathy Sierra, was victimized by some terrible online harassment. Many people were upset by what she experienced, and spoke out against the type of behavior that targeted her. It led to some serious introspection (led most visibly by prominent blogger Tim O'Reilly) about whether we needed an Online Code of Conduct.

Subsequent to that issue I attended a conference in England on online dispute resolution where many conversations took place in the halls about this topic, particularly regarding what happened to Ms. Sierra and how momentum could be built behind keeping communication respectful online. After several break out drafting sessions, a joint statement was drafted and adopted unanimously by everyone in attendance that encouraged internet users to be more thoughtful in their virtual interactions.

Online code of conduct
To support the statement, the National Center on Technology and Dispute Resolution at UMass-Amherst has launched a website, RespectPledge.org, that has the full text of the statement and offers a Respectful Communication Pledge that anyone who visits the site can sign. (Full disclosure: I helped to put the site together, and I'm a longtime supporter of the Center.) The goal of the site is to promote respectful communication online by offering a pledge that can be taken voluntarily by individuals. Also, it has a little icon you can put on your blog, website, Me page, or item listing that indicates you have taken the pledge.

Obviously, not everyone online will be interested in taking such a pledge. In fact, many of the worst offenders may think such a pledge is laughable.  However, stating these principles clearly and giving individuals a way to publicly affirm them may help to build a critical mass that promotes and sustains a culture of respectful communication online. 

RespectPledge.org seal
I'd love to see eBay members being more proactive about this issue. I think SquareTrade seals have helped to advance this cause for the past 8 years, and maybe this new RespectPledge.org seal will serve a similar purpose. I suspect that taking the pledge will urge some people to think twice before they jump to conclusions about someone online, or before they send a message that they would never say face-to-face. And perhaps seeing an icon on the listing of a seller indicating that the seller has taken the pledge will urge a buyer to begin a communication regarding a transaction problem with a constructive tone instead of an accusatory one.

Live Coverage of Today's Town Hall

Hello all.  I'll be posting pictures throughout today's Town Hall...Just refresh your browser to see the photos I post during the course of the Town Hall.  If you want to listen in to the live event go to eBay.com/townhall.

Here's our emcee, Griff talking with Kip Knight, VP of Marketing:

Tips for Reducing Seller Exposure to False NAD Claims

My esteemed eBay colleague Colin Rule's recent Chatter post has some excellent information on how eBay and PayPal handle FNAD Claims (Yes, I just coined yet another eBay/PayPal acronym. "FNAD" stands for "False Not As Described." However, as astute as my dear friend and compatriot's post might be, it begs the question, "How do I avoid the aggravation and loss from both FNAD and regular old NAD claims?" and if there is one thing I cannot resist, it's a begging question.

Over the last 11 years, I have collected a few simple tips and listing strategies that, although not absolutely guaranteed to provide 100% protection from false NAD claims, can nevertheless significantly reduce the chance of their occurring to you, an eBay seller. Some are really obvious (but I will mention them nonetheless). Others are probably less known.

The devil is deterred by the details

• Describe the item in minute detail in the text of your listing. Leave nothing out. If there is the smallest chip to that piece of china, mention it. Call it out. Take a photograph of the chip.
• Pack the item as securely as possible. I always err on the side of caution when I pack. We could spend an entire post on proper packing but there are many sources of this information on eBay so I will instead encourage you to seek them out later.
• Make insurance required for all your items. (Or at least, all your expensive or fragile items).

Highlighting the unique helps avoid FNAD claims
Many but not all, FNADs are filed for items that are not unique. For example, an electronic device or a china plate from a larger set or from a known china pattern. Some (very few) buyers with mischief on their minds might have an identical item in a "lesser" condition which they plan on switching out with your item. Your task is to find a unique aspect of your item, no matter how seemingly insignificant or small, and feature it prominently in your listing description.

For electronic devices, appliances, etc., include the serial number in both text as well as with a sharp close up photograph. For china or glass, look for at least one (more if possible) quirks or faults in the firing or glazing. Something that you can mention and can also display on the listing page in a clear, close-up photo. By detailing in text and photo, the serial number or something else unique about the item, you will discourage those unscrupulous buyers from buying your item and using it in a FNAD claim.

Employee Spotlight: Meet a real life spoof ninja!

Hi Everyone, sorry it’s been so long since I’ve last blogged. I’ve been pretty busy here in Vancouver and I’ve finally gotten back on track since the excitement and energy of eBay Live! in Boston. By the way, It was great meeting many of you in Boston. It was fun to meet some of you that had read a few of my blogs, face to face! Today I’m going to spotlight an employee here at our Vancouver Customer Support office – Jason Luu. Jason has a very unique job, we call him our “Spoof Ninja”. I sat down with Jason last week and interviewed him. He was thrilled, and very honored, to get to share a little bit about what he does with our loyal Chatter readers. Enjoy!

Julie Drossos: How long have worked for eBay?

Jason Luu: Wow! I was bamboozled when I checked my work records here, according to them, I've been here for roughly 1158 days (that’s roughly 3 years and 2 months). The root of my amazement isn't that I'm surprised to have been gainfully employed here for such a solid amount of time. On the contrary, it's more to do with the fact that it doesn't feel that I've been here for that long. The constant challenges presented to us here along with the rewards that come from meeting those challenges, really make every day here seem like a new day. Interestingly enough, according to those same records, it says that I'm a great performer and admired by many, so those records could have been tampered with.

JD: What areas have you worked in?

JL: I have had a very colorful career so far at eBay, having been introduced to many different work groups and fortunate enough to be involved in several important projects. I've been involved in Reactive Fraud, Spam/Spoof, Account Security, and, of course, Spoof Handling. Before working in the area I’m currently in (which is a job I LOVE), I have to say that my favorite department to date has been working in Account Security. It was like a roller coaster ride that never ended. Every day was interesting. 

JD: What is your job/role currently and what exactly does it entail?

JL: My current role at eBay is that of a Spoof Ninja (more formally known as a Spoof Handler)! You might be thinking that that sounds pretty crazy. And you'd be right! The governing principle behind my job is simple: to diligently protect you, our members, from phishing sites and maintain the integrity of the eBay site. The existence of phishing sites and fraudulent listings that manipulate users to visit a phishing site are serious issues. We treat such issues with a great deal of urgency. We play an instrumental role in monitoring phishing site trends and, by working very closely with ISPs and networks globally, getting these sites off the grid. It's a Ninja thing.

A good SJ Mercury News Story: eBay & SJ police team up to convict fraudsters

The San Jose Mercury News story Busting an Internet fraud ring: DOGGED POLICE WORK SENDS 4 TO PRISON would make the start of a great summer novel about how a smart, out-of-the-box-thinking, persevering good-guy detective brought a couple of sleazy, internet thieves to justice.  It would be a fun read, if only it weren't true, and if only the thieves hadn't been stealing from eBay members. 

As Elise Ackerman reports, two internet thieves in the Bay Area were tracked down and eventually apprehended and convicted.  As you read about these "kids" who had many advantages others only dream of and who still stooped to such low-life practices as identity theft and other types of stealing, you may get the same feeling I did... Truth is stranger (or more "arresting") than fiction. 

On the bright side, though, the article does a great job of highlighting San Jose Police Detective Mike Niehoff. He represents the many diligent, hard-working detectives out there. These people are often the unsung heroes, so it's great to have stories like this give them a bit of recognition. Niehoff worked closely with Jeremy Roybal, one of our own Fraud Investigators, to nail this case. And that should make the eBay Community feel good, too -- to know eBay has crackerjack detectives who work along side law enforcement on cases like these and who share the long hours, give of their resources and information, and share their expertise to help keep the whole marketplace safe. 

Jeremy Roybal is a Fraud Investigator on Mike Rou's Global Law Enforcement team at eBay. The SJ Mercury News story doesn't mention Jeremy by name, but he worked very closely with Detective Niehoff in helping to convict the infamous Ma brothers.  In fact, building relationships with detectives like Niehoff and others around the world is a huge part of their jobs.  These relationships come in handy when there is a case to solve, as it did in this case.

The Chatter team paid Mike and Jeremy a visit so they could talk a little bit about what they do, and about this case in particular.  In the video, Mike reminds people to familiarize yourself with tips and resources available on the Security & Resolution Center , and to learn about other successful police cases by checking the Police Blotter, which gets updated every 6 weeks or so.

We're proud of Jeremy and Mike -- thank you for all you do to keep the eBay marketplace safe!