I am often asked how one would prevent rape, murder, theft, and other current crimes in a stateless society. How is it done now? It isn't. Police do not prevent crime. Police show up after the crime has been committed and then apprehend the alleged criminal. Police are not at your home actively preventing rapists, murderers, and thieves from harming you. According to the 2000 FBI UCR, 63.1% of murders were cleared, 56.9% of aggravated assaults were cleared, and 46.9% of rapes were cleared. So if you are a murderer, you have a 2 in 3 chance of being caught for each murder you commit. If you like beating people up, you have roughly a 50/50 chance of getting away with it. If you are a rapist, you have roughly a 50/50 chance of getting away with each rape. With over 200,000 murders unsolved since 1960, how can one claim the police, jail, and execution are effective deterrents? Theft, fraud, and coercion have nowhere near the clearance rate that murder, rape, and assault have.
Currently, when someone is convicted of a crime, he/she is placed in a prison. There is a high recidivism rate for those who go through prisons. Prisons are scary places. There is a fear of the prison guards, the fear of other inmates. Beatings and rape are fairly common. How would this reform anyone?
Instead of offering counseling, life coaching, and trade skills, the prison system offers violence and rape. Like the educational system, criminals come out of prison no more prepared to be productive members of society than when they entered. I think it is fairly safe to say that the current system does not work well at all. The question then becomes: "what better system is available?"
Without a government, there would be no government issued ID card. Identification would likely be done through facial recognition. Google Glass, various smart phones, and other devices are equipped with cameras and connected to the internet. Facebook and other companies have massive databases linking people's names to faces. These systems could be utilized to connect those databases with arbitration records.
So, John lives in Ancapistan. John steals a car. Joe lives in Ancapistan, and Joe owned the car that John stole. Joe hires an investigator to track down his car. The car is found in John's possession. Joe calls his arbiter and has John requested. John declines to show up. Joe could hire someone to take the car back, but instead has his private arbitration insurance company post John's failure to show up for a case of auto theft posted to public record. As a result, every time John enters a place of business, a house, or other building all people are informed of John's failure to cooperate with dispute resolution providers. Anytime someone with a Google Glass like product sees him, this is known. Every camera on a smartphone would pick this up. John is financially ruined and ostracized from society until he attempts to cooperate or leaves the community.
As he is now financially ruined, he could attempt to continue committing theft, but this is Ancapistan. There is no rule preventing anyone from purchasing fire arms. At some point, someone will defend his or her property, and John will be shot while attempting another theft. Should John go to arbitration, it is likely that Joe will want his car back. In addition, he may require some compensation for the costs he incurred throughout this process. If John killed someone, compensation would be required for that. The same would be true of rape, coercion or fraud. Should compensation be unavailable from John, John would move into an Apartment building run by the arbiter. There, he would wear an ankle bracelet at all times. He would be attending therapy. The arbiter would provide him access to a job, where John made less than the going rate, and of what he did make the arbiter took a good deal. John would be receiving therapy and learning a trade. The arbiter would be paying off John's debts to the family of John's victims, and should John commit more crimes later the arbiter would likely lose business. It is in the arbiter's best interest to keep John alive as the arbiter is making money off of John, but it is also in the arbiters best interest to make sure that John is actually reformed.