At Virdaq.com, we strive to provide a legitimite and secure service. However, fraudulent users and those who attempt to "scam" or steal within the virtual gaming economy exist. As a user of Virdaq, you need to be aware of fraud and take precautions to prevent being taken advantage of.

This document will explain many of the fraudulent techniques and tips on how to avoid fraud in many forms.

We highly suggest ALL Virdaq users and PayPal users should review the following PayPal fraud prevention and security tips:

• Protect Yourself from Fraudulent Emails and Websites
• PayPal Security Tips
• Paypal Security Center

Fraud That Buyers May Encounter

As a buyer, the #1 fraud that may be encountered is purchasing an item from a seller, paying the seller as requested and never hearing from the seller or getting the item. This is a rare form of fraud and can be easily avoided. The best way to avoid this fraud is to purchase from sellers on the Virdaq who have a positive rating. In the case of purchasing from someone with a low or non-existant rating for the first time, avoid large initial purchases. Also, if you do not get your item after paying for it within the time frame that the seller has agreed to, you should do the following:

• File a "Buyer Complaint" with PayPal. 99% of the time, PayPal will deal with the seller in your favor and at the very least, they are made aware that the seller is not resolving problems with buyers and they may close the sellers account down.
• File a "Buyer Complaint" with Virdaq. At Virdaq.Com, we want to hear about the problems that may arise so we can help in any way possible to resolve and prevent them in the future.
• Leave the seller "Negative Feedback". It is important for you to let other potential buyers know that there has been a problem with the seller, so they can avoid using that seller.
• File a report with the Internet Fraud Complaint Center.

Fraud That Sellers May Encounter

As a seller, there are a few cases of fraudulent buying to be aware of. Presented here are various cases that do happen and how to deal and avoid them.

PayPal Fraudulent Funds - Case 1

The most common fraudulent funds problem stems from a user who gains access to another PayPal users account. This usually happens when a unsuspecting PayPal user follows a link in a PayPal Email Fraud. The fraudulent user then purchases items from sellers using the stolen account illegally. The seller eventually sees the funds reversed often after they have delivered the item.

It is important to note that most professional companies dealing in the selling of virtual items build into their business and pricing model, a 3% fraud rate. This does not mean that steps to avoid fraud cannot be taken.

Virdaq requires new users attempting to upgrade (validate their PayPal) to Silver rating, to wait 72 hours from time of processing the request before being changed to Silver rated. This has been implemented because it forces a Copper user looking to become Silver to validate by making a payment of $1.99 to Virdaq. In the case of a fraudulent account, the transaction attempt alerts the original owner and sometimes paypal of fraudulent activity. In 99% of PayPal stolen account fraud, the funds are reversed within 72 hours (most often within 24 hours). When Virdaq gets a reversal of validation, the user is immediately locked out of the system forever.

Copper users (new users) are restricted to $250 worth or purchases before having to validate. This curtails fraud by each stolen PayPal account to $250. The next and most important step YOU as the seller must take is that you do not deliver goods to new users for 72 hours or until the users validation changes to Silver. In the purchase notification, you can receive up to 3 warnings about specific purchases:

• If the user is Copper Rated
• If the user has 0 feedback rating or lower
• If the user's Virdaq account is less than 72 hours old

If any of these warnings exist in the purchase email, you should hold off on delivery of the item for 72 hours or until the users validation changes to a Silver Rating.

If the Buyer complains, there are two important notes. First, refer that buyer to this document and realise that the "right to withhold delivery to Copper rated and new users for 72 hours" is in the user agreement. Second, users that are less than 72 hours old cannot leave negative feedback and any negative feedback ever left related to this policy will be changed in the favor of the seller.

If you find that despite all of these precautions, you are the victim of fraudulent funds, please do the following:

• Email fraud@virdaq.com and indicate the post number, the buyer's Screen Name and the PayPal account name used to pass the fraudulent funds.
• Leave negative feedback.
• File a complaint by email or by phone to PayPal.
• File a report with the Internet Fraud Complaint Center.