1. Proactive Fraud Team Overview

2. eBay Inc. confidential 2007 1.Spotting fraudulent activity on the eBay site proactively 2.Prevent fraud by removing user / listings / ask for proofs 2 The objective of fraud Investigation

3. eBay Inc. confidential 2007 What does Fraud do? 3 Issue123Issue173 Issue172 Suspension Restriction URC limits Reinstatement Appeals Removed Cross Platform

4. eBay Inc. confidential 2007 4 Proactive investigation Review:  contact information  account history  related accounts  Phoning the seller Take action on: Items End listings Ask for proof Accounts Restrict Limit activity Suspend Ask for proof How does Fraud do it?

5. eBay Inc. confidential 2007 Accepted Documents POI: Proof of identity (proof of identity) Driving license National identity card passport POA: Proof of address (proof of address) Statement of account in bank Bill (water, gas, telephone electricity...) Insurance Certificate POW (Proof of Ownership): receipts 5

6. High Risk Selling and Seller Risk Management

7. eBay Inc. confidential 2007 7 Definition, Criteria of HRS High Risk Selling is proactive workflow. This work type investigates accounts that have recently registered, but have some high risk activity. It prevents: Fraudulent item to be sold on eBay Suspicious sellers from trading on the site Once the item or seller meets certain criteria, they hit Fraud filters and a case is pulled up for manual review by the Fraud team. The criteria for HRS case: Account is less than 30 days TOS (Time On Site) Account has less than 15 Feedback score Other criteria (confidential)

8. eBay Inc. confidential 2007 Example of High Risk items 8

9. eBay Inc. confidential 2007 9 HRS Consequence Package PlatformeBayPayPalAppeals ConsequenceNo action N/A Restriction issue 123N/AFraud Team Suspension 188No PP accNo Appealable (see exceptions) Cross Platform Action (across two platforms: eBay and PayPal)

10. eBay Inc. confidential 2007 10 HRS MAC Notes – issue 123 User has 72 hrs. for sending documents; If user doesn’t pass the document verification or doesn’t provide any document, the account will be suspended (issue 188)

11. eBay Inc. confidential 2007 11 HRS MAC Notes – Crossplatform Suspension

12. eBay Inc. confidential 2007 12 HRS MAC Notes - Suspension

13. eBay Inc. confidential 2007 13 HRS Appeals Issue 123 openAction TP Issue 123 appealed within 7 daysVerify POI POA POW if OK close issue Issue 188 appealed within 7-10 days with DOC Route to Fraud Team Issue 188 appealed later than 10 days Answer no appeal - SOL5318

14. High Risk – bidding refers to the proactive fraud work type that targets users, with little or no feedback, who are showing an extraordinary bidding pattern on the site. They bid and win multiple identical high value items. These bidders usually use stolen funds, fake contact information and want to have the items shipped fast. High Risk Buying Mass Registration This work type actions accounts that are registered in mass (100 plus accounts at a time). These accounts have the sole intent to commit fraud.

15. eBay Inc. confidential 2007 15 The appeals of suspensions HR Mass Registration are handled by the SH team. This suspension was placed by the system in case of suspicion of automated creation of fraudulent eBay account or suspicious buying activity. We ask the member to justify the contact information provided upon registration. ASK FOR POI/POA High Risk Buying/ Mass Registration

16. eBay Inc. confidential 2007 16 HRB/ Mass Registration Action TP HRB POI POA SuspensionVerify document and if ok reinstate HRB Indefinite SuspensionReply No Appeal Mass Registration POI POAVerify document and if ok reinstate

17. eBay Inc. confidential 2007 What’s the objective of HRS/SRM Investigation? 17 HRS SRM Estimate fraud risk by user Prevent fraud by removing user / listings / ask for proofs/restricting PayPal First, review the account to determine what type of “Risk” it poses: Risk to the eBay Community Risk to eBay Risk to Themselves Next, decide the “level” of risk that the account poses: Low Medium - Low (Slight concerns, account beginning to decline). Medium – High (Poor selling behavior. Rapidly declining standards). High (History of rapidly declining standards, clear intent to defraud, history of massive concerns in multiple selling behaviors).

18. eBay Inc. confidential 2007 18 The Criteria for SRM case Seller Risk Management A user has more than 10 FB Has been registered for more than 30 days Characteristics: Spike on GMV High number of sold items with no delivery Metrics: GMV Conversion rate: item solds vs listed Fulfilment rate: items posted vs sold Complaint rate: cases open against seller Average sell price: cheap items at the beginning then expensive ones

19. eBay Inc. confidential 2007 The Criteria for SRM case URC Limits Issue 173 Cross Platform Suspension Issue 172 SRM Suspension 19

20. eBay Inc. confidential 2007 20 Selling Limits A cap on a sellers ability to list items It can be applied to a value (GMV/GMS) or a number of items URC = User Risk Code What is it? To mitigate risk of seller losing control of sales To avoid Explosive Growth To mitigate exposure risk in case anything goes wrong Why are we doing it?

21. eBay Inc. confidential 2007 21 Selling Limits Total Item Quantity: The number of items we allow a seller to list and sell within 1 Month Currently Open items and Sold Items within the current month are counted together. Total Item GMS: The value of items we allow a seller to list and sell within 1 Month Currently Open GMV and Sold GMV within the current month is counted together

22. eBay Inc. confidential 2007 22 Identifying Limits – eLVIS Identifying Limits – Selling limits tab

23. eBay Inc. confidential 2007 23 Identifying Limits – MAC Note Maximum number of items per calendar month Maximum value of items per calendar month For manually placed limits there is a MAC note left on the account with the following taxonomy:

24. eBay Inc. confidential 2007 24 Identifying Limits – MAC Note If a member is hitting a URC block you will see issue 339 on their account

25. eBay Inc. confidential 2007 25 Limits – Routing Guidelines

26. eBay Inc. confidential 2007 26 SRM Mac Notes - 173

27. eBay Inc. confidential 2007 27 SUSPENSION CROSS-PLATEFORM (Paypal-ebay): Exemple de Mac Notes Crossplatform Suspension Inform member that suspension is not Appealable SRM Mac Notes

28. eBay Inc. confidential 2007 28 SRM Mac Notes – issue 172

29. eBay Inc. confidential 2007 SRM – Appeals and Reassignment Guidelines 29 SRM1/ SRM2/ C2C/ B2C ACTIONS APPEALTP Issue 172Fraud TeamReassign Issue 173PP resolution CentreSOL3912 Crossplatform suspensionPP resolution CentreIf appealable: SOL3912 If Not appealable: reply No appeal SuspensionFraud TeamReassign CSKB TOPIC1153

30. eBay Inc. confidential 2007 30 PlatformeBayPayPalAppeals Issue 172No actionUK Breakout Suspension Appeals Issue 173Low restrictionPP Resolution Centre Seller Risk Management Suspension No PP acc existsUK Breakout Suspension Appeals CP SuspensionHigh restrictionPP Resolution Centre SRM Consequence Package Cross Platform Action (across two platforms: eBay and PayPal)

31. CW

32. eBay Inc. confidential 2007 32 Mac Note - recognizing Policy actions

33. eBay Inc. confidential 2007 Mac Note Example

34. eBay Inc. confidential 2007 34 Reassign emails to CW Infringement List Practices Prohibited item BTAC/CIT VeRO