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Not sure how I missed this, I like to think of myself as being on top of the industry but I just came across this over the weekend.

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A few months back, Craiglist instituted a telephone verification process that places an automated outbound call to a user placing a classified ad in certain. The call delivers a unique code using text to speech, which is then used by the poster to authenticate the ad they are placing. This is an effective measure for dealing with spam, and a great thing for legitimizing the Craigslist user experience….

The problem is that Craigslist is categorically blocking legitimate VoIP and Pre-paid cellular users from authenticating themselves. The phone verification process is fairly straight forward.

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When you place an ad in many on Craigslist, you are presented with the form below. What sophisticated algorithm does ReduceFraud.

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Coincidentally, ReduceFraud. Amazingly, this has created a business opportunity for resourceful entrepreneurs.

I would love to find out which service provider Craigslist is using to delivery their automated outbound verification calls. It would be cost-prohibitive to incure circuit-switched LD charges to deliver all those millions of calls….

I would not be surprised to learn that the provider was leveraging VoIP to send these very same outbound verification calls. And how about the irony that ReduceFraud.

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We touched on that briefly on the Squawk box call yesterday. Honestly, it is tough to give them the benefit of the doubt on this. It is really screwed up. I find it funny that a large organization revenue and influence wise would utilize a service that is so arbitrary.

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Craigslist is in serious trouble about the spam and illegal posting stuff — they face lawsuits and even being shut down in some places because of the spammers. It is hard to argue that denying some percentage of users access to post is worse than denying all advertisers and potential buyers access.

Which is of course not the same thing as not dealing with fixing their issues with voip-using potential advertisers.

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The upside has to be good — craigslist is big business. I see their efforts to date as band aids.

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I am not an expert in broad fundamental solutions like OpenID, I just saw their current methodology of voice verification to be inherently flawed. I sympathize wholeheartedly with the folks at Craigslist. If they are doing something as detailed as checking the carrier, why not instead of alienating 14 million subscribersoffer SMS validation, take a recorded voice sample, or offer the subscriber a faxable form?

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There are so many easy alternatives than a black-out approach. Great article by the way.

I have a very good system working now that I can generate working verified phone s. Anyone notice that we just let San Fran have Legal Hookers???

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Ummmm oh wait Craigslists crack team of 25 hippies are located in San Fran too…. Craigslist… shut down your Escort s You say you are non-profit you go on TV and the news saying you want to bring peace and love to the nation and world lets see it. So I called their domain registration contact and left a message.

Are there other services besides them? Probably the majority of their help-wanted are fake e.

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Perhaps they would be wiser to employ the services of an entity that is empowered with a lot more information to conduct skip tracing and personal background information. It can be done, but there is only so much they can do to research the background history of their users.

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When the cell rings, note the incoming. This is the for the pay phone.

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Hang up the cell without answering and then hang up the pay phone. The pay phone will give your fifty cents back. Either whip out your laptop or, if not feasible or no wireless, call a friend on the cell, and have them enter the pay phone in the Craigslist phone verification.

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The payphone will tell you your verification. Google has an interest in Craigslist. Essentially for personal data. Giving your phone to make a post is tremendous invasion of privacy.

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As a form of discrimination, it may not be legal. I want to hear what the AG says. Blocking pre-paid cellular users is a discriminatory practice.

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Because I am a prepaid user I was blocked from further activity on CL. If they were truly interested in dealing with spammers and scammers they could certainly find a more equitable form of verification. Alienating tens of millions of users leaves an opening for a structured and responsible alternative to CL. Save my name,and website in this browser for the next time I comment.

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