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Schwanson Schlegel
SL's Tokin' Villain
Join date: 15 Nov 2003
Posts: 2,721
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09-01-2006 11:29
This is a letter LL is emailing currency exchange owners: From: someone
Hi there - I am sending this email to SL users who currently or formerly
operated Linden Dollar exchanges. Linden Lab is thinking about making a
new policy applicable to third-party L$ exchange operators, and I would
like to have your feedback.
As most of you know, we continue to see patterns of fraud where the
wrongdoers cash out on third-party exchanges. These people have more
difficulty cashing out on LindeX, because we have more extensive
fraud-scoring tools. Unfortunately, we cannot make all the
fraud-scoring data available to third-party exchanges, because this
would violate the privacy of our users. However, the SL system now has
some of the key data exposed to all users, such as the age of the
account and the availability of payment information. Therefore, I think
it is reasonable to create a policy that would apply to third-party
exchanges - here is a draft proposal:
=========
NOTICE TO THIRD-PARTY EXCHANGES
User-to-user Linden Dollar exchange activity is a consistent target of
attack for attempted fraud and similar malicious activity. Because
successful Linden Dollar fraud is a matter that adversely affects all
participants in Second Life, Linden Lab has the following minimal fraud
screens that are recommended for all third-party exchanges:
1) Exchange activity should be permitted only for accounts that have
been in existence for at least 30 days.
2) Exchange activity should not be permitted by any account that does
not have payment information on file.
LindeX uses many more fraud scoring indicia in addition to these
recommended screens - although we cannot disclose these publicly, we are
happy to work with legitimate third-party exchange operators to improve
fraud screening tools. Note that none of these fraud measures are
mandatory. However, please be aware that in the event that Linden Lab,
in its sole discretion, determines that Linden Dollars gained through
fraudulent activity have been exchanged through any third-party that has
not implemented at least the measures specified above, that amount of
Linden Dollars exchanged will be deducted from the account of that
third-party exchange operator.
=========
I would like to implement this policy in the very near future. I've
tried to make the policy as lightweight as possible, but I would welcome
any ideas for improvement. Please let me know if you have any comments
or suggestions. Thanks very much,
Ginsu
I made the part that interests me the most in red. |
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Darkness Anubis
Registered User
Join date: 14 Jun 2004
Posts: 1,628
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09-01-2006 11:39
Yowch thats a little harsh isn't it? They must have a considerably bigger fraud problem than any of us are aware of, or they are trying to discourage 3rd party exchanges. Killing off the third party exchanges would in effect force more users to become verified and kill the competition in one fell swoop.
Be interesting to see how this little maneuver plays out.
For me, I trade on Lindex but I cash out on SLExchange purely because getting the cash to my bank is so much less a hassel.
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Schwanson Schlegel
SL's Tokin' Villain
Join date: 15 Nov 2003
Posts: 2,721
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09-01-2006 11:44
From: Darkness Anubis Killing off the third party exchanges would in effect force more users to become verified and kill the competition in one fell swoop.
That's how I read it. |
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Metaforest Cheetah
Registered User
Join date: 18 Aug 2006
Posts: 82
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09-01-2006 11:51
From: Schwanson Schlegel This is a letter LL is emailing currency exchange owners:
I made the part that interests me the most in red. Interesting. I can trade on Lindex, but not through a third party because I am not old enough, even though I have provided payment info... On the red portion: Banks do this all the time (in situations that do not even involve fraud) with a very low standard of proof! Just try and get your money back.... =B-) |
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Darkness Anubis
Registered User
Join date: 14 Jun 2004
Posts: 1,628
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09-01-2006 11:53
I do find one thing interesting. Nowhere on the Lindex info page does it say only Verifieds can trade or even that only verifieds can cash out.
It is entirely possible to make alot of money in game without ever putting payment info on file, therefore having a legitimate reason to cash out.
Be interesting to see if they require only verifieds to trade for themselves in the future or if it is only for 3rd party sites.
Afterthought: There are 3rd party dealers of L$ in game that totally bypass the regular Linden $ trading sites. It is possible for an unverified to cash out without ever providing LL with payment information.
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Iron Perth
Registered User
Join date: 9 Mar 2005
Posts: 802
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09-01-2006 19:50
Inevitable, I believe. A bit suprising that the rules are not the same for the Lindex though (under 30 can buy/sell L$, for example). Hard to compete when you're not playing by the same rules 
_____________________
http://ironperth.com - Games for SecondLife and more.
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Jon Rolland
Registered User
Join date: 3 Oct 2005
Posts: 705
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09-01-2006 21:04
From: Ginsu Linden However, please be aware that in the event that Linden Lab,
in its sole discretion, determines that Linden Dollars gained through
fraudulent activity have been exchanged through any third-party that has
not implemented at least the measures specified above, that amount of
Linden Dollars exchanged will be deducted from the account of that
third-party exchange operator. From: Translation of Ginsu Linden We can't flat ban you from competing with us, but if you do, at our sole discretion we will steal money from you. Sure you want to challenge our monopoly? Edit: 3rd party operators note: this is NOT fraud control... AT ALL. This is NOTHING but a veiled attack on your operations. From: Ginsu Linden 1) Exchange activity should be permitted only for accounts that have
been in existence for at least 30 days. Lindex doesn't apply this. If the intent was fraud control why didn't Ginsu say accounts less than 30 days old should be restricted to * purchasing no more than US$150 worth of L$ per rolling 30 days * selling/posting no more than US$2000 worth of L$ per rolling 30 days From: Ginsu Linden 2) Exchange activity should not be permitted by any account that does not have payment information on file. Another purely anticompetitive measure. In order to cash out USD with your exchange your customer must provide you with the same level of payment info they would provide LL to cash out through Lindex. Shouldn't the notice be to keep records of payment info correlated to Avi name because in event of fraud LL will have your records supenaed? In order to cash out SOMEONE has to have payment info. |
