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  1. #1

    How to protect from customers fake data?


    How can protect ourselves from customers registration fake data information?

    Is a good idea to ask them for ID copy via fax/email or not?
    Some companys ask customers for ID whem make the first payment.


  2. #2
    Join Date
    Jan 2004
    Yes, we ask for ever new customer to fill out a authorization from and send in a copy of their ID and (if a credit cards i sued a copy of the credit card also)we do allow them to black out any sensitive information but we do ask to be able to read their name on both cards and the last 4 digits of the CC number. This will help weed out the fraudulent orders...also getting them on the phone if possible also helps.

    Good luck!
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  3. #3
    Join Date
    Oct 2002
    Langley, BC
    Depends on what you are selling. If you are selling VPS or Servers an ID adds an extra layer of security.

    If you are selling shared hosting, I think it may drive new clients away because they have to do these extra steps to buy a $5 hosting service.

    You can use MaxMind which will plug right in to your WHMCS which will cross check if the data entered is a possible fraud or not.
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  4. #4
    For shared/reseller hosting, we generally don't ask for further identification (license, passport, etc.) because most people want the service to be automatically provisioned. For suspicious cases, we will ask for further information.

    For VPS/services, its kinda expected, so I wouldn't worry too much.
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  5. #5
    Join Date
    Aug 2003
    East Coast
    You could call the phone number that they list as an order verification, also you can check the signup IP against their billing address. These 2 functions will weed out most fraud.

    Or you can use Maxmind.

  6. #6
    Join Date
    Apr 2009
    New York City
    With orders that are above at least $45 mostly orders that come out to this price or above are for a server deal. Well anyways we tend to ask clients for a copy of their id that must match their paypal name and if they pay by credit or any type of bank card they'll have to also send in a copy front and back of the card blocking all degits on the card except for the last four for verification this is typical standard practice with most providers these days if not there may be a little more to it with them depending who and what their fraud check standards are. Some go as far as having the client call or they call the client there maybe more to it but idk my ways work perfect for me and my team.

  7. #7
    Very usefull info all of this.
    I'll give a try on MaxMind plugin first.

    Thank you all!

  8. #8
    What would be the result of fake data informations ? I host VPS's, should I ask for ID scan and stuff like that ?

  9. The result of fake customer data can be that a spammer will get a webhosting account to send spam. The result is: In the case of shared hosting, your IP might get listed as sending spam, therefore giving a hard time to existing clients who use their email address for their communication. Obviously, that spammer is not going to pay any bills. Advance payment or contact by telephone or email should generally scare these people off.

  10. #10
    Join Date
    Feb 2005
    United Kingdom

    Thumbs down

    Quote Originally Posted by jrianto View Post
    You can use MaxMind which will plug right in to your WHMCS which will cross check if the data entered is a possible fraud or not.
    the MaxMind will not safe you from fraud, we had a genuine customer last year, MaxMind - stated/indicated safe order, after 6 months of using service customer decided for no reason, chargeback every payment. As Stripe don't support Australian address verification or developers or hosting companies they simply refunded all money to customer even I do have plenty of communication with customer, as we done some extra jobs on his account as part of technical support and the Stripe don't give a **** about this evidence.
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  11. #11
    Join Date
    Mar 2010
    Upstate New York
    It's part of doing business to deal with chargebacks. No matter how good your service+support, you'll eventually run into those clients that claw back the payment. CC companies want to keep their clients happy so they usually lean toward going with the client before the merchant.

    But it's still a good idea to keep good records, and to screen any new customers. Especially for those suspicious orders...
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  12. #12
    Join Date
    Mar 2006
    Hosting, VPS, Server sales - nothing more than fraud. It is actually a miracle to see a legit hosting order when everything match - Web Hosting with DDoS Protection | Shared & Reseller in Europe/North America
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  13. #13
    Join Date
    Dec 2006
    First it has to do with what you are actually selling. I mean you can't expect people to give you copies of private information if all they are doing is paying you $2 for example. I mean you can always call to verify orders that's a plus. If your still not sure you should be able to ask to provide at least a copy of the credit card so you can verify it, but again it depends on what kind of clients you have.

  14. Indeed, it is always a trade-off. Giving overhead to customers by having to confirm that they are real might scare them off. And with the webhosting competition that we have out there, clients will simply choose your competitor. On the other hand, it is normally impossible to tell a real order from a fraud one. It is not always possible to tell from the IP address they use for the order. Also, the address they provide is real in most cases also. Their email address exists of course, as well, and following an activation link is not a big deal for people who do fraud bookings. Best thing is to simply call the person, which is no real overhead for the client. Asking for the ID might be too much overhead for the client already.

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