Replying to [Admin]:
![[em1]](http://img.alibaba.com/images/eng/style/icon/emoticons_smile.gif)
The solution is in everyone's hand, they just don't know yet. There's currently a forum on alibaba.com that called "comment on companies" that members can freely inquiry about trustworthness of any company they want to do business with.
![[em2]](http://img.alibaba.com/images/eng/style/icon/emoticons_laugh.gif)
I agree with some member's suggestion of installing an address verification system. Pay Pal has been doing it for a very long time and being exceptional successful.
Yes it is true that scammer can set their address to be a P.O. box. But will you buy merchandize from a company whose mailing address is a P.O. box?
![[em12]](http://img.alibaba.com/images/eng/style/icon/emoticons_surprised.gif)
That's why except the very few exceptional case of account hijacking, there's no phony pay pal account opened by scammers.
![[em20]](http://img.alibaba.com/images/eng/style/icon/emoticons_victory.gif)
I do not think feedback system will be useful. It will be just like the feedback system of ebay. You feel in one way or the other you are compelled to give a positive feedback. For a very simple reason. If you give someone a negative feedback, you can guarantee you will get a negative feedback in return and in the end, both will be compelled to do a mutual feedback withdrawal.
![[em8]](http://img.alibaba.com/images/eng/style/icon/emoticons_cry.gif)
An escow-system is not very necessary although possible. The reason is simple. All the banks and financial institutions offer "letter of credit" also known as L/C for a very long time already!! The L/C fee is usually 1% of the face value of the L/C. Letter of credit in all ways is more flexible and better than escrow, and functions the same way. Funds released to seller after buyer satisfied with goods, or funds released back to buyer if buyer unsatisfied with the goods and buyer return the goods.
![[em4]](http://img.alibaba.com/images/eng/style/icon/emoticons_sad.gif)
However, the good thing of L/C is that both buyer and seller decide the contractual terms on the L/C instead of the escrow company setting the terms, if it's luck enough that it's not a faked escrow company.
![[em19]](http://img.alibaba.com/images/eng/style/icon/emoticons_great.gif)
Since similar products are widely available, there's no urge for alibaba.com creates an escrow service. And even if alibaba.com provides it most people will not use it. And if it's compulsory, most people will use other online market place instead.
![[em9]](http://img.alibaba.com/images/eng/style/icon/emoticons_dizzy.gif)
So I recommend members use the "comment on companies" forum more often. And yes I do see an urge for alibaba.com to add address verification on alibaba.com. It will effective eliminate 99% if not all scammers on alibaba.com.
![[em18]](http://img.alibaba.com/images/eng/style/icon/emoticons_deal.gif)
Yes I do realize a lot of phony companies in Afria, or east europe with very funny address offers unbelievable deals. I usually delete all these messages right away. But I am sure inevitably a lot of new members will fall prey to these scammers. Implementing an address verification system like pay pal is the only way out.