Hello,
I do have two types of clients.

#1. Loyal persons whom I know personally or through online for years.

#2. New (Unknown) Clients.

I am about preparing a good fraud check policy for my company. My partner says, "Lets make a Phone call verification before initiating the order processing".

Would it be fair for all clients? Because I just do not want to suspect everyone else, But unfortunately i have to.

Every replies are most appreciated :)

Phone call verification can be worth it in some ways.

however ive come across some crafty russians;

They buy up voip numbers in a region of where they have got fraudulently obtained CC numbers... That way the hosting provider thinks they are calling the right person, when really its a kid in russia.

I suggest getting maxmind or another 3rd party fraud verification service.

If you want to protect yourself, its best to do phone verification.

We actually manually call and verify every customer before creating their account.

Unless you're doing many many transactions every day... there is no reason why you shouldn't also do this.

Even if you create the account right away.. and then call and manually verify them some time over the next day...

It is critical to confirm new orders are legitimate, especially if you are in a market where fraud is rampant, like this one.

Plus.. we have the added benefit of "meeting" our new customers and establishing a relationship with them. They are much more likely to have a positive impression about our business after we talk to them for a few minutes, ask them if they are ok with everything, have any questions, etc...

With phone rates so low (most calls we make are free since we use VoIP, and with Skype you can pretty much call anywhere for 2cents/minute).. there is really no reason not to verify your customers.

If you want to protect yourself, its best to do phone verification.

exactly as we do, that's recomended.
just keep in mind, that you should also log the users IP / date / time - and while you call your unknown client , go over the information he filled in while registering.

you can whois the ip , this will pretty much give up his general location.

just be aware of hacked proxies!

Its extremely recommended that you call customers and verify before accepting an order or payment. I've had worse experience in the past not verifying people and end paying charge back fee's

Best way if you want to do a check is use Maxmind, we been using Maxmind for a few years. So far it cut down most of our fraud sign ups.

Bye the way OP I like your company name :)

I have used Maxmind as well, it helps a ton, but there are other types of fraud nowadays as well. I have met a few people using their own credit cards rent dedicated servers, and after a month of usage they file chargebacks with their bank :< Not all of them get their money back, but some do, and I am still stuck with the chargeback fee.

You could always look into chargeback fees for those customers. Something along the lines of if a customer doesn't go through the correct channels and issues a chargeback they are responsible for a $X fee. At least for the ones that you win.

Would it be fair for all clients? Because I just do not want to suspect everyone else, But unfortunately i have to.

You can make your call a simple introduction to your company to welcome them to your service. That way, you introduce yourself in a friendly way, they get to know you and without them knowing, the new customer has gone through a phone verification.

Hello,
Very nice ideas :)

I will start doing the Phone call verification (It will surly increase the Business-Customer relationship)
Also will give a try with Maxmind.

Thanks guys :)