Tradeloop Users Help Stop Fraud With "Account Flag" Feature

Tradeloop's new "Account Flag" security feature is barely a month old, but is already a success. Tradeloop users have flagged 12 accounts so far for review. A third of those accounts appeared to have real ethics-type issues that required additional investigation. The others were more routine reference checks, address corrections, and similar issues.

To flag an account, look for the link that's included on all company and individual user profiles. Click on the link and enter your concerns in the textbox.

This feature isn't a substitute for the Ethics Process. Instead, it's a way to alert Tradeloop to accounts that you think need extra scrutiny. Our Customer Support staff and Membership Committee will review the account and may request more information from the dealer after an account is flagged.

Thanks to all the Tradeloop users who have taken the time to share their concerns and help keep the trading community a safe place to do business.

Connect With Over 40,000 Validated Tradeloop Users Worldwide

We're celebrating a milestone this week at Tradeloop: our Customer Support staff validated the account application of our 40,000th Tradeloop user! That's 40,000 potential buyers and sellers you can contact with confidence. This is no small task. Our account screening protocols are so rigorous that Tradeloop staff requests additional information on 75% of applications.

Account validation is our first-line defense in combating fraud. Other anti-fraud systems are initiated by the Tradeloop community:

• Flag Member Account: Alert us to Tradeloop users that you think need extra scrutiny
• Fast Track Fraud Alerts: Ask the Ethics Committee to send a warning to the community about fraud.
  
• Ethics Process: Resolve business disputes with other dealers. Our emphasis is on amicable resolution of disputes, but the Ethics Committee can - and will - ban dealers for non-participation in the process or unethical business conduct.
  

Even our Connections system - Tradeloop's internal social networking tool - provides an added layer of protection. Make Connections with other dealers and create your own trusted network within Tradeloop. Use new Broadcast options to buy and sell with just your trusted network.

Connecting with other Tradeloop dealers is easy. Just click on the "Network Connections" link under the My Account tab at the Tradeloop Web site. There are 40,000 validated users waiting to hear from you!

Search the dealer directory and start making Connections.

Concerned About Fraud? Use Tradeloop's "Account Flag" Feature

Have you ever visited a Tradeloop member profile and wondered "how did that guy get in?" Don't just ask yourself; tell us there may be a problem! Use the "Account Flag" link that's included on all company and individual user profiles. Here's how it works:

Look for the "Flag for Review" link in the "System Stats" section of the profile page.

That link takes you to a textbox where you can explain your concerns. We'll flag the account for further review by Customer Service and the new Membership Committee.


Note that this new feature doesn't replace the Ethics process or the Fast Track Fraud Alert system. If you're currently involved in a business dispute with another dealer, then please file a formal Ethics complaint. Our all-volunteer Ethics Committee will review the facts and try to help you reach an amicable resolution.

Use the "Flag for Review" feature to alert us to Tradeloop users that you think need extra scrutiny. Tradeloop members work with other dealers in the industry every day. Share your experience with us and help us keep the community safe from fraud and unethical business practices.

Search the member directory and alert us to any potential problems.

Ethics Committee Investigating Counterfeiting Cases & Other Disputes

Two companies were banned from Tradeloop last week after they failed to respond to Ethics complaints filed against them. Another case involving counterfeit products is still being reviewed by the Ethics Committee. It's the latest in a series of counterfeiting cases presented to the Committee in the past few months.

• Case #5109: The complainant alleged that the defendant sold counterfeit equipment.
• Case #5110: Involved a complaint about the non-shipment of prepaid goods.

Because neither defendant responded to the complaint, the Ethics Committee wasn't able to evaluate the substance and mediate a resolution. Remember that Tradeloop member companies are required to respond to Ethics complaints..

Counterfeit product damages the value of the wholesale market as well as the reputation of legitimate dealers and manufacturers. Tradeloop takes the issue seriously and our staff works with the Ethics Committee to gather information and mediate disputes.

Our extensive account validation process for new members helps keep fraudulent companies out of the community and we're constantly evaluating our policies and updating verification procedures to keep the community safe.

Visit Tradeloop's Ethics blog for more information on these and other posted cases. You can review the evidence presented and even make your own comments under the "Members" tab.

Counterfeit Products: Three Members Banned From Tradeloop This Week

Tradeloop's Ethics Committee voted to ban three Tradeloop members after receiving member complaints and documentation about counterfeit products. All three companies are based in Shenzhen, China and, the complainant alleged, were "fabricating and selling" counterfeit SUN products. After investigating the complaints, the Ethics Committee voted to ban these three companies from Tradeloop:

1. Gold Coast Technology - Case #5104
2. ValuePlus International - Case #5102
3. Evergreen International Trading Corporation Company Ltd. - Case #5103

All three cases were posted at the Tradeloop Ethics area. We encourage Tradeloop members to review the details of the cases as well as the discussion between the committee, complainants, and defendants at our Ethics blog. Members can also leave their own comments about the cases by clicking on the "Members" tab on the case details page.

Counterfeiting is a serious, worldwide problem that affects the value of the wholesale market and the bottom line of every legitimate dealer. We will not tolerate the sale of counterfeit material through Tradeloop Broadcasts and we encourage every Tradeloop member to exercise due diligence when working with unfamiliar dealers.

Warnings About Non-Members

We have many non-members searching at Tradeloop, so we've added another security feature to email messages. You'll see a warning if the person emailing you is a non-member.

When a non-member sends you an email using the email link on your Member Profile, the standard message now includes the text below:

Tradeloop NON-MEMBER

We made this change in response to a Tradeloop member's suggestion that we highlight when a sender is not a Tradeloop member. That notation adds credibility to email leads that do come from Tradeloop members and warns members to take additional precautions before setting up a deal with a non-member.

It's easy to check someone's membership status at Tradeloop. Just search for the company or individual's name at the Dealer Directory link. Membership status is listed directly under the company or individual's name. Non-validated listings also display a small warning icon:

Non-Member
Tradeloop Member

Are you sure the company you're dealing with is a Tradeloop member? Search the Dealer Directory and find out fast!

Counterfeiting Allegations: One Reason We Banned a Tradeloop Member

Tradeloop's all-volunteer Ethics Committee closed Ethics Complaint #5089 last month and banned the defendant company - Sunrich Innovation, Ltd. The initial allegation was serious and deserved immediate attention: the complainant alleged that Sunrich was selling counterfeit HP equipment.

Surprisingly, that wasn't why the Ethics Committee voted to ban the company. Here's what happened.

1. In August 2010, Tradeloop received reliable information that Sunrich Innovation Ltd. was selling counterfeit equipment and contacted the company about the Ethics complaint.
2. Sunrich responded and denied the allegation.
3. During its investigation, the Ethics Committee discussed the difficulty of proving allegations of counterfeiting and the best way to handle the issue in a way that's fair to everyone involved.
4. Tradeloop contacted Sunrich and requested two business references within either the US or UK. Since the company had been trading with Tradeloop members, we asked Sunrich to make sure that the two customer references were also Tradeloop member companies.
5. After a delay, Sunrich provided two references, but only one was a Tradeloop member and didn't respond to our request for the additional reference.
6. The Ethics Committee voted to ban Sunrich from Tradeloop until they provide acceptable business references.

That's a long description of a simple process. We asked them for references. They didn't respond until their membership status was in jeopardy. They didn't respond completely. The Ethics Committee voted to ban them until they do.

Remember that the Ethics process is required for Tradeloop members. It's a condition of membership and we work to make the process as fair and transparent as possible. Members can view Ethics Committee questions and member responses for posted cases at the Tradeloop ethics blog.

Counterfeiting is taken seriously at Tradeloop. The Ethics Committee is discussing how to address allegations in a way that protects the rights of all parties involved. They welcome your comments and suggestions too! Please share your opinions here at the Tradeloop blog.

Always Improving Security At Tradeloop

In addition to our rigorous membership verification procedures for new Tradeloop wholesale members, we've added an additional security step at the sub-account level. Members can create as many sub-accounts as they need, but each sub-account will have to be reviewed/approved by Tradeloop before that user can send Broadcasts.

Some Tradeloop members have contacted us recently because they were concerned about unapproved members sending out Broadcasts. They'd receive a Broadcast, click on the sender's profile, and see a warning that the user had not been approved.

Now, new sub-account users will receive a message telling them that their sub-account is awaiting approval. They'll be able to send Broadcasts as soon as that process is complete. This is part of our commitment to protect the integrity of member accounts. We also require that a company name change or user name changes be reviewed by Tradeloop staff before they're approved - even if it's just to correct a spelling error.

Fraud and identity theft are no laughing matter. They ruin reputations and destroy trust between dealers. At Tradeloop, we'll continue to maintain strict standards that protect individual accounts and the entire trading community.

Why Did We Approve That Tradeloop Member? See For Yourself.

Do you ever wonder why we approved a company? Now you can see for yourself, right on the Company Profile page. Members can review our notes, see what information we evaluated, and why we approved an account.

Look for the link in the System Stats section on the Company Profile page as shown here. Click on the link to view the company's "Membership Approval" page:

A transparent process helps members make informed business decisions, perform due diligence when dealing with new customers, suppliers, or set up a Trusted Network using our Connections system. At Tradeloop, we take fraud seriously - from account approval to complaint resolution with our Ethics Committee.

We tested this system first with our volunteer Ethics Committee and they responded with enthusiasm:

Youngin Kim, EJ Tech Solutions: "This will really help us squash fraud. I think every Tradeloop member should have access to the information."

Benjamin Ingwersen, Frontier Computer Corporation: "This will help us address scammer and counterfeit issues head on."

Mike Van Scoy, MSRC Co.: "With as much fraud as currently exists in the secondary market, this will help a lot. I'll definitely be checking other companies to see how they were approved."

Will you use this information when you're setting up deals? Check it out and share your opinion here at the Tradeloop member blog.

Use The Ethics Process - Not Broadcasts - To Resolve Disputes

Last week, we had several incidents where Tradeloop members used the Broadcast system to disparage other members. This is a serious violation of our terms of service, so we want to remind everyone about the procedures in place to help resolve disputes and alert the community to fraud: the Ethics process and Fast Track Fraud Alerts.

Tradeloop's Ethics process is governed by our all-volunteer Ethics committee. They're a group of industry veterans who work with the parties involved in a dispute to help resolve it amicably. When that's not possible, the committee may take actions ranging from issuing a warning to banning a company from Tradeloop.

Members are required to participate in the Ethics process as a condition of their Tradeloop membership. Our committee members and staffers work hard to keep the process fair, transparent, and speedy. Once cases are resolved, members can review the details of posted cases and offer their own comments at the Ethics blog.

Until a case is decided and posted though, we keep the information private to protect the privacy and reputations of those involved. That's why we can't allow members to bypass the Ethics committee and use the Broadcast system to distribute disparaging information: it's not fair to the other company involved.

Fast Track Fraud Alerts are used to quickly warn the community when we get information that someone may be trying to defraud members - such as a case of identity theft. That situation is quite different than a dispute between two members over contract terms or product quality. Members submit Fraud Alert requests, which are reviewed by the Ethics committee before a warning message is sent.

We encourage everyone to use the Fast Track Fraud Alert form if they suspect fraud and to use the Ethics process to get help resolving a business dispute with another dealer.

How Should We Screen & Approve New Tradeloop Members?

As we continue to refine and revise our Tradeloop member validation procedures, we'd like input from community members. What would you like to see in terms of validation of new members and how should we determine qualifications for membership?

Here's a brief description of what we already look for and/or require when a company applies for membership. Note that there are more checkpoints, but we keep them confidential to thwart fraudulent companies.

• Check their IP address.
• Verify email address and phone number.
• Search for public listings and compare the addresses listed there with the information provided to us.
• Search for public complaints against the company.

If some of the information isn't correct or seems suspicious, then Tradeloop's customer support staff will contact the prospective member and ask for additional information, such as industry references or other documentation.

It's a time-consuming process, but worth the effort to help stop fraud.

We also encourage Tradeloop members to do their own due diligence and visit a member's company profile before agreeing to a deal. The profiles display how long they have been members and it shows a message if they are non-members or if their information has not been verified.

We're always updating and strengthening our anti-fraud procedures at Tradeloop and we'd like member input on this important topic:

What do you think should be required of new members?

• Bank references
• Trade references
• Other documentation to establish identity

Anything else? Tell us what you think here at the member blog.

User Profile Messages Highlight Trial Members & Banned Dealers

We've added two new classifications to company and user profiles in Tradeloop's member directory. There are now four profile classifications:

1. Member
2. Trial Member
3. Non-member
4. Banned - Ethics Violation

Previously, dealers with a 30-day Trial membership were listed as "Members," but some Tradeloop members thought that was misleading. Now, during the 30-day trial period, the dealer and company profile will display this label:


And a company that's banned from Tradeloop due to an Ethics violation will have this notation in its profile:

Look for these new classifications when you're visiting other dealers' member and company profiles. And please, share your thoughts here at the Tradeloop member blog.

New Warning Flags on Unverified Tradeloop User Accounts

We've added new warning flags to the user and company profiles of registered users at Tradeloop. These warning boxes alert members if some of the information supplied is incorrect, incomplete, or if Tradeloop has not verified it. This will clearly indicate if there are issues with information displayed on non-member accounts.

Remember that Tradeloop members must supply complete and correct information if they want their accounts to remain active. These new warning boxes are to alert you to potential problems with the information supplied by registered users at the site, not other members.

The new warning boxes serve two purposes: to remind Tradeloop members to do due diligence before agreeing to a deal and remind registered users to update or correct their information.

We designed them to attract attention.

For instance, a registered user who signs into his account that contains incomplete or unapproved information will see this warning box with a notation to contact Tradeloop to correct the problem:

In another example, a Tradeloop member who visits a company profile that contains information that has not been verified by Tradeloop will see this warning message:

We hope this change will encourage all registered users to provide correct contact information and/or update the information in their accounts. And we also encourage Tradeloop members to use care when dealing with non-members whose profiles display these warning messages.

At Tradeloop, combating fraud is a priority and we're constantly updating our member screening procedures and working to alert the community to fraudulent companies.

We'd like your opinion on this change. Will you find the warning messages useful?

Use The New Ethics Search Function To Check For Fraudsters

We've added a new search function to the Tradeloop Ethics area to made it easier to find defendants in posted Ethics Cases. Now you can search on defendant name and sort cases by either date or defendant name.

Try out the new search by visiting the Posted Violations listed in the Ethics area of the site. The default sort is by date, so you see the most recent cases first. As this screen snippet shows, you can now sort by the defendant's last name as well:
Several Tradeloop members requested a more robust search feature to make it easier to check for Ethics violations. They're worried about fraud when dealing with new customers because there's no established business relationship - just a phone call or email message. Now, when someone contacts you with a great price on items for sale or wants to place a large order, it takes just a minute to check Tradeloop's Ethics area before agreeing to the deal.

Try the new search function and tell us what you think. Will you use this new function to check for violations? Why or why not?

Tradeloop's Customer Service Staff Gets A Workout

Tradeloop Customer Service staffers slammed the door on a fraudulent trial membership application last week. After noticing some irregularities in the application, they did extra research that uncovered even more issues with the applicant.

When a prospective Tradeloop member wants to join the community, we check the basics first, including - but not limited to:

• Is the phone number correct and in service?
• Does the email address work and is it tied to the company URL?
• Does the Web site list a street address and does it match the address given to us?
• Is the credit card number valid?
  

There are a number of other items we check and verify, but we don't publicize those. If something looks odd, then a staffer contacts the applicant and asks for more documentation. In this particular case, Tradeloop contacted the applicant several times before rejecting the membership.

Member verification can be a time-consuming process and we take it seriously. Tradeloop's Business Development Manager, John Beanland, described the process this way:

"We go above and beyond for our customers. We have invested and continue to invest money and man hours to develop and maintain a strict validation and verification process. Using the tools we have developed and some intuition we were able to catch him and block him from the site."

Our system isn't perfect, but we work hard to keep fraudulent companies out of Tradeloop. Using the Fast Track Fraud Alert system and the Ethics Process, we can even warn the community about companies who aren't part of Tradeloop.

Thanks to our internal controls and the hard work of our Customer Service department, we're keeping Tradeloop a safe place to do business.

Non-Tradeloop Member Banned After Ethics Committee Reviewed Two Complaints

Tradeloop's Ethics Committee voted to ban non-Tradeloop member company, Si Tech, after reviewing a pair of complaints filed in March against the company.

In complaint #5068, the complainant alleged that Si Tech provided forged wire transfer documents for a shipment. In complaint #5070, a different complainant alleged that Si Tech misrepresented the condition of a shipment of hard drives and hadn't been responsive to efforts to resolve the issue.

Tradeloop staff and Ethics Committee members tried to help the parties resolve the issues amicably. Everyone involved used the Ethics blog format to present the facts and forcefully defend their positions.

In international diplomacy, the debate would probably be termed a "frank and forthright exchange of ideas." An elementary school teacher might call it a "verbal food fight."

What's your opinion? Both cases have been posted to the community for review and we invite Tradeloop members to visit both case #5068 and case #5070. Click on the Members tab to add your comments.

Do you have experience with this company? Please share your story with others at the Ethics blog.

Members Must Verify Contact Information To Access Tradeloop Site

Tradeloop members should update their contact information whenever their phone number or email address changes. To protect the community from fraud, we block access to the Tradeloop site for any member with unverified or incorrect contact information.

Updating your contact information is simple. Just log into your Tradeloop account, select the "Sub-Accounts" link under the "Account" tab, and click on the "edit" link next to your account information. Enter your updated information and save it.

We've issued two Fast Track Fraud Alerts warning about attempted identity fraud just in the past few weeks. It's more important than ever for Tradeloop members to keep their information correct in the system and be alert when setting up deals - particularly with non-members.

Identity Theft Warning - Person Posing as Keystone Memory Group

We issued a Fast Track Fraud Alert to the Tradeloop community after Sherri Sheerr of Keystone Memory Group notified us that someone was using her company name to attempt to purchase printer cartridges on credit.

Beware:

A person posing as Mike Metelitsa, of Keystone Memory Group is
trying to purchase equipment from people using the employee and
company's name, but bogus email address and phone number.

View the details here:

Case 5072
http://www.tradeloop.com/ethics/cases/case.cfm?id=5072

We urge all Tradeloop members to verify company information when a Tradeloop member contacts you to set up a deal. A few minutes of due diligence can save hours of frustration. For example, this fraud attempt contained two red flags:

• An inaccurate phone number: The phone number is a toll-free number that is different from the number posted in Keystone's member profile and on the company's Web site.
  
• Suspicious email address: The fraudster used an email address hosted at Earthlink.net, instead of KeystoneMemoryGroup.com. There's no reason for a Keystone employee to be using an email not associated with the company.
  

Tradeloop's Fast Track Fraud Alert system allows us to quickly alert the community to fraudulent companies and activities like this one. Use this contact page to alert the Ethics Committee to fraud and request a Fast Track Fraud Alert. Tradeloop and the Ethics Committee will receive your communication immediately, review it, and may post the warning to the community.

Identity Theft Warning - Person Posing as Enhanced Network Systems - Europe

We issued a Fast Track Fraud Alert to the Tradeloop community after Mark Wardell of Enhanced Systems Network - Europe notified us that an identity thief is using his name to defraud dealers.

A person posing as Mark Wardell, of Enhanced Network Systems-Europe is trying to purchase equipment from people using the employee and company's name, but a bogus email address.

View the details:

Case 5071: http://www.tradeloop.com/ethics/cases/case.cfm?id=5071

Tradeloop's Ethics blog contains the details of posted cases. You can review the committee discussions and make your own comments about a case by clicking on the "Members" tab to open a comment window.

Tradeloop's Fast Track Fraud Alert system allows us to quickly alert the community to fraudulent companies and activities like this one. Use this contact page to alert the Ethics Committee to fraud and request a Fast Track Fraud Alert. Tradeloop and the Ethics Committee will receive your communication immediately, review it, and may post the warning to the community.

Have You Seen This (Former) Tradeloop Member?

Former Tradeloop member company, Express Micro PC, was banned from Tradeloop this month for failure to respond to an Ethics complaint filed against it (case #5067). Can any Tradeloop members help locate this company? You can review the details of this case (and of all posted cases) at Tradeloop's Ethics blog.

In this case, the complainant (non-member company, IT Center) alleged that Express Micro PC received a pre-payment of $4800 but failed to deliver either the product or a refund. In June of last year, IT Center responded to a WTS request on Tradeloop from Express Micro PC and purchased product with no problem. So the buyer felt safe in arranging a second deal several months ago. However, he didn't realize that Tradeloop suspended Express Micro PC's account in December for nonpayment of its Tradeloop membership.

If you have any information about this company or would like to comment on this case, we invite you to visit our Ethics blog. There, you can review the details of all posted cases and make comments.

It's easy. For example, to comment on this particular case:

• Make sure you're logged into your Tradeloop account.
  
• Click on the Posted Violations link under the Ethics tab in the main navigation bar.
• Select a case you'd like to review. Here is case #5067.
• Use this tab navigation to review the discussions between the complainant and defendant, the Ethics Committee discussion and comments, member comments, and the voting results.
• To discuss the case, click on the Members tab. It opens a comment window where you can add your own comments and/or discuss the case with other members.
  

Note that in this case, the defendant was banned for failure to respond to the complaint, so there was no committee vote. However, other cases often inspire lively discussion between the complainant, defendant, and Ethics Committee members about the issues involved and actions the committee should take.

Tradeloop established the Ethics blog system to increase transparency and understanding about our Code of Ethics and the Ethics process. We encourage all members to review posted cases and comment on them.