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  1. #1
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    How to catch a Fraudster?

    From the searches I’ve done on WHT and from the people I’ve talked to, there’s no 1 way to catch a fraudster.

    Right now I’m using WHM Autopilot > Paypal to accept online payments, and if anyone has any specific suggestions to this setup, that’d be wonderful.

    We’re considering using call customer to verify some of our larger packages, since it seems that most fraudsters don’t have legit phone numbers. But other then that, I just want to try and do everything I can to prevent fraud orders.

  2. #2
    It might alienate some potential customers, but one possibility is looking at whether they have a verified PayPal address.
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  3. #3
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  4. #4
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    Compare the IP on the order with the location they put for address, this is the biggest giveaway from all the crappy fraud coming from Vietnam.... that and the fact they signup for $2000 worth of hosting at a time
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  5. #5
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    maybe I am dense but I will ask anyway....

    If a guy signs up for $2000 on hosting and you have auto account creation....can you not just cancel his accounts as soon as you come on and notice? sure you will lose the cc transaction fees, but is there anything else you lose?

    Greg

  6. #6
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    Nope, if you identify fraud then its not really much of a problem. Its when you dont catch it and its charged back later that things start to add up.
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  7. #7
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    Thank you phpcoder for that link, it was helpful.

    I think MaxMind is a great looking solution to checking out those high priced orders, and if anything doesn’t look right, requesting the customer to fax over a copy of their driver’s license or some other legal paper and calling them up on the phone / using call customer.

    Chargebacks are what I’m really trying to avoid, and I guess if I stop the order before it goes through (using MaxMind to find the fraudulent orders,) I will be able to avoid a great deal of “fraud.”

    - Felix.

  8. #8
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    Well we've just gone for the exterme of manual verification on everything. If someone signups up for $2000/year hosting without contacting you first something is wrong.

    Rgds

    Rus
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  9. #9
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    Manual verification is probably the best method. Most credit card fraudsters use obvious trends that are quickly noticable to the human eye - such as ordering the maximum plan at the maximum contract length - with a new domain name that cannot be verified. One of the scariest things about credit card fraud today is that the criminals have stolen the identity information of the cardholder, so the phone number, etc will appear accurate. Investigation of the IP address can help, but sometimes the fraudster is in the same proximity (as I recall from a recent case). It makes me feel good to have helped a cardholder realize their card was stolen and prevent that awful person from further abusing it.

    Speaking of this subject, there have been a lot of fraud orders going around for domains like "aol-something.com" or "ebay-something.com". Those are usually red flags.
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  10. #10
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    Right, so if they've stolen all the contact information from the card's true owner, then using call customer in addition to MaxMind could do the trick.

    If the card holder doesn't pick up the phone at the specified time to verify the account, then you know it's stolen.

    I mean, I guess from the searches that I've done, and the people I've talked to, there's not BULLETPROOF way to stop fraud - we can only take as many steps as possible to avoid it.

    Again, thanks.

    - Felix.

  11. #11
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    Exactly

    You can only do so much and invest so much time and money!

  12. #12
    Some other tips for personal detail verification:

    You can use switchboard to do a reverse lookup their phone number, and compare it to what they provided.

    USPS's web site can be used to confirm zip codes match the city/state they provide.

    Never process any orders that you could stand to lose a large amount of money on unless you call and verify the order.

    Tom Martincic
    Wyenet Services, LLC

  13. #13
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  14. #14
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    so saw I am using everything automated....and someone signs up for an account with a stolen credit card, even after the account is created and the credit card billed can I check this stuff and if I decide it may not be real, I can call the phone # and if it turns out to be false, am I screwed or can I just credit the money back to the account? Just wanting to make sure I can cover my butt, but allow things to be automated for the most part...

    Greg

  15. #15
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    Heh, come on Mr. Community Liaison, MaxMind was posted already in this forum indirectly through phpcoder.

    But thanks for trying to help.

    - Felix.

  16. #16
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    oops, hit the back button and it posted this again - ignore..

  17. #17
    Originally posted by X F e L i X
    Heh, come on Mr. Community Liaison, MaxMind was posted already in this forum indirectly through phpcoder.

    But thanks for trying to help.

    - Felix.
    Considering how extremely awesome, and free, the service is I don't mind it being posted even three times in a thread.
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  18. #18
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    so saw I am using everything automated....and someone signs up for an account with a stolen credit card, even after the account is created and the credit card billed can I check this stuff and if I decide it may not be real, I can call the phone # and if it turns out to be false, am I screwed or can I just credit the money back to the account? Just wanting to make sure I can cover my butt, but allow things to be automated for the most part...
    That's actually a good question, and before I give you the wrong answer, I'm gonig to have to ask the same question lol.

    Since I've never run into this situation before, I want to make sure I don't screw it up once I do haha...

    - Felix.

  19. #19
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    For those with your own merchant account:

    Dont process credit card transactions instantly.
    Check if the card is valid, AVS and CVV by using "authorization only" for $0.01
    Then wait a day or two and charge the full amount.

    This way usually the stolen card is cancelled or over its limit by the time you charge it. You will get charged double the gatway fees for doing this, but at least you prevent chargebacks.
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  20. #20
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    As pathetic as this may sound, we're actually resorting to paper signups for all new customers.

  21. #21
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    Actually quite a few companies are doing this... or at least having paper coppies available

  22. #22
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    Using paypal, can’t you just fully refund payments made to you? Or simply not accept them? If someone signs up using WHM Autopilot’s set up, then the “subscription” is sent to paypal, can’t I simply deny the payment if I have any reason to believe there might be something fraudulent about the order?

    - Felix.

  23. #23
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    Yes, you can set your PayPal account to make you approve the payments before it actually accepts them

  24. #24
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    Then there's the solution.

    (That's what I've been doing lol... but for a second, you guys scared me haha.)

    - Felix.

  25. #25
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    If you believe an order is fraudulent you can refund it (upto 30 days after with paypal, no time limit by credit card) to avoid a chargeback.
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  26. #26
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    If you ever have any doubts, just contact the customer with the phone number they provided. If it's a stolen CC you'll likely reach the person who's CC was stolen and have the mess cleared up. Or if you're unable to reach anyone, the info is likely fraudalent and you should suspend the order. Better yet though, with 2Checkout.com they can do all that for you :-D
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