I need a way to verify a users identity because my web site handles peer to peer buying and selling and I would like to minimize the amour of fraudulent users posting fake listings and never shipping the item. The money transfer goes through my account so if a user charges back I would have to pay. To keep this to a minimum what would deter social engineers and criminals for using my website.
To verify a user with utmost security, you should verify the user's identity by having him/her enter their credit card number, and then testing that for being registered, and then testing it against your database, along with all other information. This will work because the the user can only make so many fake accounts (1 per credit card), and the user will not want to have to register and manage another credit card for a single service.
Another step would be email entering, where the user would enter there email, and two things would happen:
- The email entered would be tested against the username selected, furthering the security.
- The email entered would have a verification system.
And also, it is possible to test the credit card info by searching google accounts, finding the closest matches (And having the user select their site), and then having them sign into google wallet, thus verifying that it is indeed their card.
Wow. Good luck. I know that the company I'm working for spends a lot of time and money dealing with just this issue. They have arrangements with CC companies and other secondary companies and they flag location, phone number, address and other points in trying to pinpoint and prevent shipping to thieves.
This is not a UX issue. UX is there to enhance the user experience; to make information easy to find and processes easier to infer / learn. UX cannot prevent a thief or a marketer from taking advantage of a situation.