eBay already collects information about the types of items users are browsing and bidding on and shares it with partners in order to serve up targeted advertisements - both on eBay and off. Now eBay will store information about which computers users are logged into when conducting buying and selling activity on eBay. The company announced Monday it was launching a new initiative in an effort to combat fraud perpetrated through account hijacking:
In June eBay will begin verifying our sellers when they list an item to ensure they are logging in from the same machines they have successfully used previously - usually a home or business computer.
If you are a seller, and you attempt to list an item from a different computer - for example, from a PC you are borrowing in a hotel or library - eBay will make an automated call to the phone number you have registered with us to confirm it is really you. We may also prompt you to verify your identity in other ways.
Initially, this identity confirmation process will only be applied to selling, although we may be extending this to other high-visibility activity in the future.
The first lesson here for sellers is to make sure your contact information - especially your phone number - is up-to-date in eBay's system. eBay said, "A wrong or outdated phone number may delay your ability to list items or respond to your customers, if eBay cannot verify your identity." eBay also recommended sellers register their mobile phones as a secondary phone number in registration details.
Says one eBay seller on his blog, "I hope there's an extra-step built in when the phone number on the account has been changed at the same time the different computer has been used!"
Questions that come to mind include:
Is it troublesome that eBay is storing this kind of data on individuals, or is it no big deal? And will it share the information with its ad partners?
Will this data also help eBay detect shill bidding?
Might eBay share this information with LiveWorld to help monitor users' posting activity on its Discussion Boards?
Can eBay do anything to prevent malicious bidding? (How big a problem is this?)