Does LocalBitcoins protect fraud?

Recently one of our traders feedback score was reduced by a negative rating that simply says “too expensive” from a buyer that has very little trade history.


When LBC support was contacted their response (you can read it here) was that the person started a trade, then canceled the trade and was able to leave “confirmed” feedback.

There are a few points to consider in this

  • The person starting the trade ignored the terms of the trade
  • LBC “Confirmed” feedback from a trade that was not completed and by a person that is not an established trader
  • LBC refuses to remove feedback even when it has been proven the trade was fraudulent
  • LBC refuses to identify the trade and allow the negatively effected person to defend themselves (possibly to reduce support tickets and avoid having to act)
  • LBC offers sellers little support or protection from those wishing to start fraudulent trades..

This concerns us because LBC is basically telling people “You are free to ignore our TOS and the ad’s terms. Do whatever you want and we will help you hide so that no one can do anything about it.”

This has been evident by the amount of negative/fake feedback recently left on many accounts. At one point we received 8 negative ratings in a 5 day period. Much of the fraudulent feedback was even on days we hadn’t done any trades.
LBC knows they have an issue with feedback. As we said, this has recently happened to many traders (davidhockley as one example)and LBC does not remove it. While it is hard to believe LBC wants businesses to be harmed and victimized, the refusal to take action and remove this feedback is startling.
Feedback and reputation are the foundation of bitcoin trading on Localbitcoins. If LBC knowingly allows feedback that is false or has deceptive intent and encourages an environment where it can flourish, are they protecting fraud?

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