ONLINE AUCTION WEBSITE OZTION SAYS ONLINE TRADERS MUST USE ID SYSTEMS

MELBOURNE, 7th October 2008 –  OZtion, Australia's second largest online auction service, said today that consumers can secure a higher level of protection against being ripped off by rogue and fraudulent sellers if they use systems that identify sellers as being honest traders.

Unlike some online auction sites, OZtion has a system that attaches an identification ranking to each item for sale on its website. This allows buyers to see what level of identification has been provided by the individual seller and the item for sale. OZtion said this system provides a high level of protection to traders concerned about being ripped off by fraudsters.

OZtion offers various levels of identification schemes –  a 100 point verification system, phone-based ID checks, photo, address and credit card verification. OZtion partners with Australia Post to conduct a 100 point ID check, as one of its verification methods. If sellers do adopt the 100 point ID check, then OZtion covers the item to a higher amount under OZtion's Buyer Shield program. This system encourages the sellers to secure a higher level of identification, because it drives more sales as buyers feel more comfortable transacting with them.

“We have a model whereby we monitor seller behaviour extremely closely and we have an identification process that ensures buyers know they are buying items from reputable sellers,”' said OZtion Managing Director Philip Druce. “We always act quickly and responsibly if we notice any possible suspicious behaviour on our auction service. The key is to be pro-active in fraud prevention, and not act after the crime has been committed.”

The company said its security identification model and fraud prevention services meant OZtion had a very low likelihood of fraudulent sellers manipulating its members.  OZtion said it recognized that low-level fraudsters would always try to target innocent traders, but the company's mix of identification services, and its monitoring systems are working well. 

OZtion is the second largest online auction provider in Australia with more than 330,000 members and more than 820,000 items listed for sale. The provider's membership has jumped 70% in the past year as new traders flock to the diverse range of items on sale, and also give strong support to the no listing fee offer.

“Providing our members with a safe and secure environment is paramount to our success and we get excellent feedback from customers on how they feel comfortable trading on OZtion,”' Druce said. “If any seller on OZtion does not pay their selling fees within one month, their account is suspended and they can no longer sell items on OZtion. It doesn't matter if the seller is a significant customer of  OZtion.

Media Contact:
Vuki Vujasinovic
PPR
vuki@ppr.com.au
02 9819 0967