how the hell are you supposed to combat the fraud problem

i use hostgator with whm and WHMAP but i end up with 95% of my applicant being false satolen paypal or credit card accounts

anyone got a good way of stopping them?

My number one defense is common sense. If it walks like a duck, quacks like a duck, and looks like a duck; it's a duck.

Most fraudsters are lazy. GEO IP detection is a good starter. Then phone verification. Don't forget good judgment. If it doesn't feel right, there's probably something wrong with the order.

Where you advertise can have a big effect on it as well. Our system tracks various directories and the results of the clients who've signed up from them. There are two specific mainstream hosting directories (which shall remain nameless) that send a much higher percentage of fraudulent customers than others.

If you are getting that much fraud, you need to get your customers from a different source!

Most of the time, those who commit fraud are careless about which email they use. I've actually saw a few who use a random email "asldfkjaslkfj@hotmail.com". Do you know anyone "normal" who would use an email that random?

I sure don't. So I would investigate :-]

HI,

If you are running a hosting reseller. whmcs.com is the best solution for you. They have best fraud order protection agaist 99% of fraud orders and stolen paypal account or credit cards.

Hope you enjoy it!

Look at some of the posts in this thread: http://www.webhostingtalk.com/showthread.php?t=616505

how the hell are you supposed to combat the fraud problem

i use hostgator with whm and WHMAP but i end up with 95% of my applicant being false satolen paypal or credit card accounts

anyone got a good way of stopping them?

Fraud is part of the internet, I'm afraid. The real question is, how do you avoid charging a card that is fraudulent. The best method I can think of is....

1. Grab the IP # of the person who orders. Yes, it can be spoofed, but generally, with an IP to location type look-up, will give you a good idea where the person is actually located at the time of the order.

2. Don't use any type of automatic hosting setup software and don't charge the card automatically at the time of order. We have manually processed every order since 2002 (after doing the reverse IP lookup). Since that time, our charge-back ratio has dropped to nearly zero.

3. For large orders over a certain amount, say, $100, give the cusotmer a courtesy call to confirm the order.

And as someone else has already mentioned, just use common sense.

They have best fraud order protection agaist 99% of fraud orders and stolen paypal account or credit cards

By using maxmin or varilogix, both of which integrate very easily into the application the OP is already using !

Varilogix has done wonders for us. If you configure it correctly and stay strict when you get an order that does not pass it can be a lifesaver.

A big hypothetical problem with insisting on *only* voice telephone callbacks is that in the United States, it frankly and bluntly violates the A.D.A. (Americans With Disabilities Act) by completely locking out people with hearing impairments. You might want to consider providing an alternate method of verification for United States customers, such as mailed-in photocopies of driver licenses. In practice, though, the odds are excellent you'd never be sued if you didn't, so there it is. :rolleyes:

Varilogix has done wonders for us. If you configure it correctly and stay strict when you get an order that does not pass it can be a lifesaver.

how the hell are you supposed to combat the fraud problem

i use hostgator with whm and WHMAP but i end up with 95% of my applicant being false satolen paypal or credit card accounts

anyone got a good way of stopping them?

Setup maxmind and use it. If you can't do that. Make a phone call to each person that signs up. Your going to do two things... cut out the fraud and let your customers know that you care about their well being.

We use several layers. First you have got to verify transactions. Varilogix (http://www.varilogix.com/) is great at this. Then you need to identify their trends....we detect this in real time on our site and send them a nasty popup that says GO THE HELL AWAY WE ARE WATCHING YOU! and we are! Then you need to be proactive about watching running processes and ports. We use our own custom software for this. look for the red flags and when you identify them, shut them down. you need to be proactive to combat fraud. It's not one specific thing, but a combination of everything that is most effective.