How GoDaddy Auctions fights fraud

GoDaddy Auctions published an article on how it fights fraud. This article highlights some recent innovations in fighting fraud, including the introduction of ID verification.

GoDaddy focuses on three key areas to strengthen platform integrity:

• Membership Purchase: Buyers must purchase an Auctions Membership subscription and verify their identity before bidding. We evaluate signals such as payment method and contact information during this phase.
• Account Verification: To prevent individuals from creating multiple accounts for fraud, GoDaddy Auctions uses account verification. Since April 2024, we’ve switched to a more reliable ID verification method, replacing PayPal.
• Bid Verification: Our dynamic bid verification system flags suspicious bids before submission. We’ve been experimenting with identifying unusual bidding patterns and automatically suspending suspicious accounts.

ID verification

This new trust capability strengthens the GoDaddy Auctions member verification process with a five-step form that enforces CAPTCHA and includes submitting a valid government ID. The following image shows the new auction ID verification form required for existing members who haven’t completed verification, and new members with low trust scores. This form must be completed to lift bidding restrictions.

Key shill bidding updates in 2024

• January: Refined bidding monitoring rules with automatic account suspension for obvious offenders.
• February: Introduced instant bans for members attempting to use duplicate PayPal credentials.
• March: Increased fees for shill bidding-related offenses, including non-payment for won domains.
• April: Implemented ID Verification V1 to replace PayPal.
• May: Released ID Verification V2, with centralized GoDaddy profile updates required.
• June: Blocked remaining PayPal surfaces used by fraudsters.
• July: Enforced selective re-verification for previously verified suspicious accounts.
• Ongoing: Developing machine learning technology and automation to detect and prevent fraudulent behavior.