LocalBitcoins site has now a new user reporting feature. You can find the user reporting link from the public user profile page. The new feature makes it easier to report suspicious users, though this option has been always available through the support ticket system.
LocalBitcoins support team checks the reported users and may take necessary action to suspend the user account if there is evidence of breaking the site rules and good trade etiquette. Potential reasons to report a user may include
- Fraudulent activity
- Violating LocalBitcoins terms of service
- Misleading information
- Abuse
Easier reporting of suspicious user activity