PayPal has a system where when you have reached 4,500 quid received, you have to complete a verification process under EU anti-money laundering rules (so they say).

One step involves logging into your account and verifying your telephone number. The system then telephones you after a minute or two and you have to key in a code that's given to you at the website. Thye whole thing is automated and run by software.

eBid could use such a simple and automated service to verify all members - agreed they'd have to have a US point-of-presence to keep costs down, but certainly within the UK it is a viable option as it requires no extra staff after the initial set-up.

The benefit is that it gives a record of a proven presence at a specific phone number - that can be used to confirm address via the BT online directory etc - the whole process can be automated from start to finish and if the new member has failed to give a correctly matching address for the telephone number, then they get booted. It would block scammers and deliberate auction wreckers from minute one of their membership, and with no way around the security check, they simply couldn't join.