Fraud Orders

My appologize if this is the wrong section..
Recently i have recieved a HIGH amount of fraud orders were the fraudsters has paid trough Paypal, but in most cases with 2checkout....
There has been around 20 fraud orders the last 5 days, and from that i didn't have a single fraud order before that.
Does anyone know were these fraud orders might come from, and why fraudsters bother to make a fraud-order-after-fraud order when i rapidly ban the order IP and shut down their services?
If you could provide me with some good options to prevent fraud, then that would be exelent. I have tried out the "phone verficiation" before, and i can't really say that it helped.. (It helped against fraud, but it alost lost me a nice amount of non-fraud orders)
Anyone got an idea?





__________________Norted Solutions - Hassle-Free, quality VPS hosting.

Your might want to try Varilogix telephone fraud prevention services.





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What's the difference between the Varilogix telephone fraud prevention services and any other Phone Verification system?





__________________Norted Solutions - Hassle-Free, quality VPS hosting.

not sure but we have been using it for quite a few years.





__________________
Shared|Reseller|VPS|Dedicated|Colocation|Streaming Services
Exceptional web hosting and related service for over 7 years.
North Storm Media Networks | www.northstorm.net
Toll Free: 1 (877) 408-5391

And the idea behind is, is that the user gets phoned up with a 4 digit code or something right ?
Which is what i don't want to use, as my experience with it is that it works, but it works a bit to well..





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Those looking to commit fraud generally sign on to those offering instant setup on hosting accounts. It's a like a green light to them. If you're noticing a significant amount of fraudulent orders coming through, perhaps temporarily disabling such, if enabled, would be your best bet.
That being said, phone verification is one of the better options to combat fraud. They're not going to (generally) give you a real phone number if they pay you with a fake or hacked account.
Perhaps providing customers with an explanation and details on how the phone verification system works and why it is there would also be of some aid.
When a customer unknowingly receives a phone call on their personal cell or land-line that they do not recognize, their first instinct is to ignore it. I know I do. If it's that important, a message can be left and I'll return the call when I'm able.
The problem here is that most phone verification systems do not leave messages and if the phone call is not answered at that moment, manual verification is required.

With my experience of the phone verfication is that some of the "real, non-frauduelent" orders and client's don't want to leave there own, real phone number..
Even tho at the time i used phone verification i had a huge warning with an explenation to why a phone number was needed and that it needed to be switched on and available instantly after order..
Despite for this i still got sales tickets and live chats were people asked if it was possible to not leave the phone number for verification.





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Varilogix is great. You can also check maxmind.





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Maxmind, if i am not wrong is the one i used previosly for the Phone Verification orders...
But is that really the only and best solution to prevent fraud orders ?





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While phone verification may not be the most viable option on paper (to some), it is effective in preventing most fraudulent orders from getting through.
Short of stopping instant setup on all orders and manually verifying each one, I'd say phone verification is a small price to pay if you take the time to educate your customers on how it works and why it is in place.
I've spoken to customers that questioned the phone verification and eased their mind. At the end of the day, when a customer signs up for a web hosting account, be it shared, reseller, VPS or dedicated, all information is required to be accurate, that includes the phone number(s) they provide.
I go on to explain that in the event we're not able to reach them via e-mail or other contact methods, the phone number(s) provided is our only other contact medium, which is true.
If we're not able to reach some of our larger clients in the event a problem arises or if we have a question, we're just as much SOL as they are.
A good 9 times out of 10, they understand and do not mind providing such information as they know we're not going to sell or distribute the information and MaxMind isn't going to either.

I hear from most people that phone verification does limit the number of fraud orders, but surely a fraudster could set your mind at ease by providing [a stolen set of] card details and their own phone number. So you/your system calls to confirm and voila! you speak to the fraudster and go ahead with the order.

But then again, eventually it will be marked as fraud by the payment gateway and the service will be terminated.
And i will then also have his personal phone number...





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