Linden Lab Official:Exchange Risk API

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What is the Exchange Risk API?

The Exchange Risk API is a read-only web service for Linden dollar exchanges use to evaluate the risk of a transaction. The Exchange Risk API allows legitimate third-party Linden Dollar exchanges to operate with relatively low fraud activity. This is necessary because user-to-user Linden Dollar exchange activity is a consistent target of attack for attempted fraud and similar malicious activity.

The API returns Linden Lab's determination of the risk associated with the purchase of Linden Dollars in a particular transaction. It uses a complicated algorithm to identify accounts with nonstandard activity and determine the risk of fraud compared to standard activity, with respect to trading Linden dollars (L$). Use of the Risk API helps us and other exchanges identify fraud before it happens. This system is our best attempt to identify and impede risky behavior, but nothing is foolproof.

The API contains a single simple function that returns a binary value expressing the risk that Linden Lab associates with any particular transaction. Your exchange is not required to use the Exchange Risk API. However, all exchanges of Linden Dollars for real currency that are not conducted on LindeX are subject to the Exchange Risk Policy.

If you would like to receive the information necessary to use the Exchange Risk API, please send your name, Second Life account name, and the website URL that facilitates your exchange, to our Risk API program. Exchange Risk API Policy.

Who has access to this tool?

The Risk API is available to operators of working third-party Linden dollar exchanges. For more information, see Exchange Risk API.

What information does an exchange receive about me?

Exchanges receive only a "Yes" or "No" response to a query of an avatar's agent ID and transaction amount. No other information is shared with third parties.

What does the "No" response mean?

"No" indicates that a particular account shares behaviors with accounts that were proven to be high risk in the past. When an exchange receives a "No" answer, the exchange is advised that they need to decide if they will assume the risk of the transaction. Linden Lab does not require that Exchanges refuse to transact with an active account, but rather Exchanges are notified that if they transact on a "No" response, they assume the risk of the transaction.

What are some factors used in the Risk API algorithm?

Data we use is always changing based on current risk factors. The Risk API is a living process that changes constantly and would be difficult to accurately document on a day-to-day basis. Also, while we do strive to be as transparent as possible, transparency would be counterproductive if we made our methods for tracking risky behavior public knowledge.

How do I change my response from a "No" to a "Yes"?

As noted above, the data we use are always changing based on current risk factors. A "No" is not a permanent response, but rather a snapshot of a particular moment in time; most factors are constantly in flux. However, one steady factor is account payment delinquency. If you received a "No" unexpectedly, one step you can take is to review your account details for accuracy.

Linden Lab reviews the Risk API data regularly to reduce the possibility of inhibiting users unnecessarily.

Important notice to third-party exchanges

User-to-user Linden Dollar exchange activity is a consistent target of attack for attempted fraud and similar malicious activity. Because successful Linden Dollar fraud is a matter that adversely affects all participants in Second Life by damaging the virtual economy, Linden Lab has the following policy with respect to any Second Life user that purchases Linden Dollars from other Second Life users other than on LindeX.

We recognize that some users wish to operate a legitimate Linden Dollar exchange, free of fraud. For these users, Linden Lab has developed an Exchange Risk API. Use of this API will allow a buying exchange operator to receive the result of Linden Lab's determination of the risk associated with the purchase of Linden Dollars in a particular transaction. For any transaction that uses the Exchange Risk API to determine Linden Lab's risk evaluation, where that evaluation returns a result that indicates the transaction has acceptable risk, Linden Lab will not apply the above penalty policy to buyers. If the Exchange Risk API is not used, or it is used but returns a result indicating unacceptable risk, the above policy will apply. The Exchange Risk API uses the same risk assessment factors that Linden Lab uses for LindeX. We believe that this policy and API will allow legitimate third-party exchanges to operate with relatively low fraud activity.

If you're an operator of a third-party exchange, you can apply for use of the Exchange Risk API by emailing your name, Second Life account name, and website URL that facilitates your exchange to our Risk API program