I hear often about fraud with clients.

Can anyone tell me how they use their account for fraud and how to avoid those? I can't fully understand how they signup fraudently. Is it bots or something?

Thanks.

They can sign up manually but normally fraudsters use stolen credit cards to sign up. Once the accounts are setup, these are often used for other illegal activities such as phishing of paypal etc. To avoid frauds, try to limit or stop auto sign ups and check for suspicious sign ups, for eg address listed as USA, but domain at vietnam or china.

Well we used to receive orders from people in USA which are only able to pay with Credit cards for example. Well, on the first not really weird, but then a few hours later it seems the credit card has been stolen. Most companies that manage the receivings of credit card payment have a nice arrangement to check fraud payments & thank god it's handled so quick. I had the same with Paypal, someone stole someones Paypal account, placed an order on our site & paid with that.

There's nothing much you can do to prevent it, cause there will always be people around trying.

Are you to blame for these? If they use a stolen PayPal or Credit card to setup a normal website (nothing used for fraud)?

Obviouslly if your not stopping fraudsters with illegal websites you are. :(

There's nothing much you can do to prevent it, cause there will always be people around trying.
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The fraud order look suspecious itself if you check it thoroughly and use your simple common sense. You can prevent it but you can not stop it as the fraudster are more clever, they always adopt new method.

I had the same thought recently (hence a recent post). Having thought about it ive come to the conclusion what im going to do is:

1) Offer hosting specifically to UK clients
2) All the client to order the hosting prior to paying any money so i can collect their contact details etc before any processing of payment occurs.

Of course this could potentially reduce the number of signups however im not looking for huge growth in the first year...

I had the same thought recently (hence a recent post). Having thought about it ive come to the conclusion what im going to do is:

1) Offer hosting specifically to UK clients
2) All the client to order the hosting prior to paying any money so i can collect their contact details etc before any processing of payment occurs.




That's a pointless way of reducing fraud.

Imagine: Scammer from Hong Kong steals UK resident's credit card info. Scammer signs up for an account with you under the victim's name/cc info. If all you're looking at is the person's address, you're screwed.

--Tina

That's a pointless way of reducing fraud.

Imagine: Scammer from Hong Kong steals UK resident's credit card info. Scammer signs up for an account with you under the victim's name/cc info. If all you're looking at is the person's address, you're screwed.

--Tina

I dont think so... on recieving there email i can look at there IP address, i will have an address, contact number, postcode will have to match with the other sections of the address, and in addition they will need to provide the primary url they are planning on using, i can then look at the whois and compare the address with the order request... sure its not going to completely get rid of 100% of fraud attempts but i personally think it will reduce them!

What you also can do is look up the IP address via ripe, check who'se the owner of that range & then contact the ABUSE department. They can lookup who'se the owner of a current ip & at what time, so if you give much details the chance is high he can contact the one who'se doing it.

These people are lier if they provide you phone number ask so may question, try to catch them in lie and making mistake and flag that order as suspecious. They will generally try one card and if that fails, move on to another card, you can check the decline code, as this generally means that the card account they used has been closed for fraud hence no further order attempts from that person should be allowed.

Spend a few dollars a month on fraud protection - been using maxmind.com for a while. It has eliminated fraud for us. You are better off with something like this and to restrict your potential audience which would only cost you more...

If someone's gonna commit fraud, they may aswell do it properly. There are loads of free (and paid) UK-based proxy servers around, restricting by IP won't reduce it by that much (fraudsters generally know what they're doing, and know how to bypass any protection that is easy to bypass).

Adding message on your site like “We screen diligently for credit card fraud” may be enough to cut fraud attempts by some extent. :peace:

You might want to try something like FraudCall from Varilogix. You can find them here: http://www.varilogix.com/ or here: http://www.fraudcall.net

I haven't used the service but I know of people who have and say that it has completeley eliminated fraud signups for their hosting plans. They are also very affordable, something like $1.25 per signup.

David

Purchasing a good fraud protection system is the easiest way to prevent fraud effectively. Most are very inexpensive when costs are compared to chargeback fees. Just make sure the program you choose has adjustable fraud settings that can be configured to your companies specifications.

FraudGuardian + Varilogix will eliminate about 99% of this crap... for the other 1%, manually verify your orders by phone.