The eBay Myth is that you are somehow safe there.

This has never been true. From the beginnings of the service, in the 1990s, eBay deliberately tried to hold its security expenses to a minimum.

First, "the community": was to be relied upon. Then you were told, it's your risk. The eBay financial system has never been a member of Visa because achieving that level of security would be too expensive. So eBay bought PayPal and tried to turn it into a private bank -- only it lacked banking security.

It is natural to rely on cops in the financial world -- after you have done everything possible to protect yourself. That costs money, and money is something eBay has always been reluctant to spend, at least on computer security.

Now eBay admits that many accounts are being hijacked by crooks, and it acts surprised. Once again, they seem to blame crime victims and "phishing" e-mails when in fact it's their own security (or lack of it) that is at fault.

Successful eBay merchants have been pushing-back on this story, with letters claiming they're happy bunnies, but they're insiders here.

The fact is that eBay has never paid-out what was necessary to assure any level of security. It has pocketed that money as profit, and now it's reaping the whirlwind for that.

Want to prove me wrong?

Join VISA. Start a bank and follow the VISA regs on your transaction processing. Follow the VISA regs on identity.

The VISA regs aren't perfect. Banks are subject to fraud. But VISA recognized these problems from the beginning of the processing industry, way back in the 1970s. My wife works in that industry, and it's hard work. You screw around with security and they will cut you off at the knees.