Why people do not want to fight online fraud by sharing information?

[lindaK]

Hello forum,

I have another general question, which from my point of view is of paramount importance for the eCommerce business. I am sure that you all are aware of the so-called online fraud prevention tools, such as eBuyers*eview*d or Frau*dre*ord. When it comes to online services like this, online sellers have to share information about their buyers in order to prevent fraud. My question is, in your opinion, why people are afraid to do so?

Thanks,

[brotherhood of LAN]

Hi lindaK, I'm familiar with FraudRecord... a number of low end hosting companies use them to screen problematic customers. For anyone not familiar, Fraudrecord stores a one-way encrypted value of users details that other businesses can cross reference against.

I think there's potential for someone to potentially take legal action if they find that they're denied business because of listings on there. That's just my opinion though.

A concern many would have is that the data is stored securely and only encrypted data is stored there. There are still some privacy issues too, IMO. I recall that the owner of that company happened to leave an emailing script sitting in a public directory which revealed a complete list of its members email addresses, and every page load was causing an email shot to get sent out. Obviously when these things happen, people have a right to be sceptical about their data being shared with 3rd parties.

[tangor]

Sellers or Customers?

As a Seller, I do mu due diligence with the Customer up front... my fraud/bad rate hovers at 2.4% of sales. The recovery and conviction rate, however, is very close to 77%

As a Customer, I don't buy from frauds if I can help it, and if I do, it is reported to the appropriate authorities.

I put no stock in a "service" that shares personal data among parties of either side as thee web is a web of lies in most cases. :)

As to why Sellers (who aren't afraid, just abundantly filled with a great deal of commonsense and CYA) don't participate should be fairly obvious!

[lindaK]

Thank you very much, guys, for your answers. "brotherhood of LAN" can you tell me what do you think of eBuyersRevie*wed?