LocalBitcoins traders may require real name verification when you buy bitcoins online.
You may need to set the real name in your user profile before buying bitcoins online. Real name is not required in local cash trade or safe online payment methods. Real name is never exposed publicly.
LocalBitcoins users see how many times your real name has been confirmed on the public profile page. The name itself is never public.
You can enter your real name under Edit profile.
When you make the first bitcoin purchase where a real name is required, the bitcoin seller confirms your real name from the online banking payment information. After the real name has been confirmed, it cannot be changed anymore. Real name check cannot be performed on payment methods where the name of the payment sender is not visible.
The bitcoin seller is free to dispute the purchases if the provided real name does not match the online banking account used in the purchase.
Additionally, the bitcoin seller may check a government issued id or a utility bill of the bitcoin buyer if the buyer has no LocalBitcoins account history. This gives additional protection against fraudulent purchases when dealing with users with no prior reputation. The check can be performed using Attach document function in LocalBitcoin messaging system.
Real name verification gets a trusted status if a bitcoin seller with considerable reputation performed the real name verification. Trusted real name status is very difficult to manipulate.
All real name confirmations, as there might be several of them from different bitcoin sellers, appear on the real name status page.
Accepting unauthorized payments is a risk for the seller of bitcoins. Real name policy is designed to prevent unauthorized transfers in bitcoin purchases. By checking the id of the buyer and making sure the id matches the paying account name, the seller of bitcoins can verify the buyer is operating on a genuine online banking account.
After ninety days of the transaction, LocalBitcoins deletes messages and files related to the bitcoin purchases, including the file attachments like scanned ids. For more information see LocalBitcoins data retention policy.