Topic: [EDU] EXERCISE CAUTION WHEN LENDING TO USERS! - page 2. (Read 100014 times)

@DiamondCardz: First of all, thank you for putting effort on creating this thread! Can you make a note about 'Steam' saying that "if the borrower moves the game or weapons to lenders or a trusted person's wallet, it can be used as collateral".

P.S. Can you also tell the lenders to check their posts and also to ask a signed message from one of their old address(1-2 months)?

   -MZ

Because your thread is a sticky so lots of lender/borrowers read it i thought it may be helpfuf to others if you add my suggestion regarding the lender leaving netural trust on the loanee's trust profile once a loan has been taken and only removed when the loan is repaid in full.
This would be another way someone could check if the member has a outstanding loan before buying their account, lending them BTC  or just conducting any business with them.

You can see an example of what i am talking about on my profile that was left by tm2013.
Please let me know what you think of this idea.
Thanks.

Edit: i just seen the post above mine quoted in the OP, the leaving of netural trust by a lender needs to be made clearer i think, no many lenders i have spoken with know they could do that.

Quoted this:


And re-titled the thread to make it a tad more intimidating, so that people actually read it.

is it id only and you can have loans?

Useful information and feature to improve and develop our private business here. Nice...

Maybe it would be useful to find a real sociopathic scammer and observe what he did (or does?). I don't think I've ever met one (except maybe a wallet-stealing plumber who stole a wallet when daughter was a newborn, a bit before Christmas), and I only happened to "observe" one by looking through a bunch of documents wife had on him while dating.

He was unbelievably resourceful and brazen, making all his own ID, forming dozens of LLCs, and having more paperwork, legit and otherwise, than the VA. Guy (rather, his LLCs) scammed title transfers and "legally" owned dozens of cars. Almost wish I knew him to learn about what to look out for. Almost.

On that note, titles as collateral are a terrifying proposition, even if the person's relatively close (which in this subforum means <300mi away). I took a motorcycle on collateral on one of my first p2p loans -- I'd never do that again, even though it turned out well and he even repaid early. It brings into question whether or not "smart titles" would be good collateral. Depending on how the privkey was acquired, law might still find the current controller to've acquired it illegitimately and so the collateral could be worthless. To a far lesser extent right now, this could extend to cryptos and digital shares/bonds/whatever-they're-being-called-now, but I've never heard of a case, there. I don't actually recall any crypto thief being caught, yet. I guess Pirate & Karpeles count, but they were record-setters.

Unless the id is made out of solid gold or silver

A scam free environment can only happen in our dreams!
Scam is like a part of everything. Coin have two sides and it can't exist only with 1 side. Like that for everything there will be scams. Anyway I like to see a scam free environment.

Kindly,
        Muhammed Zakhir

Good thread, very informative and well written.
We need to make a scam free environement. (What is never gonna happen)
So try to use collateral or some form of escrow.(unless trusted)

Stephanie: It's like when you make a loan to your cousin. Don't loan them anything that you wouldn't consider a gift.

Andreas: Well, I can always track my cousin down and kick him in the nuts.

Stephanie: That's true. You can't do that with a Bitcoin address.

http://letstalkbitcoin.com/e18-its-not-that-simple/#.UodX2flusxk

Collateral can be mailed and insured.
Collateral can be in a digital form, e.g. alternate cryptocurrencies can be used as collateral.
IDs aren't worth much because they are easy to obtain (by forging, stealing, "borrowing" from someone, or they can be simply bought online).

Not to mention that even if it is possible to ascertain that someone's ID is really genuine, in case of a default it may still be very difficult or impossible (expensive and time-consuming) to recover the money (especially when dealing with someone from abroad).

Excellent advice

Thanks for taking the time to put together

Although i respect diamondcardz advice on lending to new users i think some advice is bit short sighted.

Collateral is fine if someone lives in travel distance but not really if they live abroad.
Also members new and old maybe cautious sending collateral and/or id to members due to bening scammed themselves, not because they r scammers.


Newbies can bé as wise as hero members remember just cause they r new here doesnt mean they are new to lending or bitcoins.

Ultimately ID is better than collateral for borrowers and lenders should never lend more than they could afford to lose in event a user defaults.

There are good rules for lending should i think could bé usul here ;-)

Uh, that's a lie.

The new limits mean you can't be a Full Member for 1 month, you can't be a Sr. Member for 6 months, and you can't be a Hero Member for 1 year.

Easiest way to spot a scammer is unfortunately listed 4th in Diamond's post.


Just check the post history. No scammer will take time to make decent posts before he can reap off some newbie.

And go to the bottom of it.
Get used to the user written style from the earliest post, then compare it to the one where he asks for a loan.
This protects you against bought accounts, too.

Arent those directly connected to each other?
The new limits and activity help a bit, but i still see 1 day old Hero Members.

Re-defined in the OP.

It's important we use the same definition, so I look to the dictionary which says collateral is security for a loan.

While identification helps prove a person is who he/she says, it does NOTHING in helping secure the funds.

You don't want to fool new users into thinking it's safe to lend to someone because they know who they are - its NOT. 

Collateral is something to fall back on - something to sell - should the borrower not repay his debt.  ID cannot help with that.

If it can be used to trace someone back to their house or such, then I would consider it acceptable. Proof of ID, not the actual physical ID

Hey, newbies lending to newbies tend to have a 80% success rate