It's a multipart process.
First you send Redbot a message that includes your name and city/state. Make sure you also include the word " Tonight " in message.
Then, you strip down, coat your entire body with a generous layer of Vaseline, and then go for a walk(at least 10 blocks) to the edge of the city and back home.
Redbot then checks the arrest records for your city and verifies that it is indeed your name, and bam you're verified!
It gets you access to the premium content of the site. Verification for selling items requires more work because you are dealing with taking peoples money and scamming in online games is a rampant problem.