Results 1 to 17 of 17

Thread: internet order

  1. #1
    Join Date
    Jan 2003
    Posts
    198

    internet order

    There are many frauds on orders done on the internet.

    Just wondering what you would do to screen a new order.

    What are the questions you would ask in a phone confirmation and other things/questions we should NEVER miss.

    This should be useful for all those conducting internet sales.

    cheers.

  2. #2
    Join Date
    Mar 2004
    Location
    na
    Posts
    256
    First of all, most of the frauds won't give you a correct phone number. I would think a copy of the identity card might be a good way since I doubt the fraudster will be bothered to produce such identification for proof.

    However, I think the best way is to avoid taking any suspicious case in the first place because you are looking for long term clients and so I doubt you should take the risk to earn $10bucks a month.

  3. #3
    fraud involving hosting seems pretty simple to me, as you're not providing a tangilble, physical product.

    customer doesn't pay > customer doesn't have hosting.
    Vagrant Web Hosting - U.S. / CANADA
    Website Hosting - Website Development - Content Management
    NEW: Windows Hosting w/ ASP.NET

  4. #4
    Join Date
    May 2001
    Location
    Colorado, USA
    Posts
    812
    You could also ask to fax you a copy of the drivers license and of the credit card if necessary. I would also monitor new accounts in question for a few days and then randomly after a while.
    Web Hosting Resource Kit - Web Hosting Reviews & Hosting Tutorials

  5. #5
    Join Date
    Aug 2000
    Location
    NYC
    Posts
    6,627
    Originally posted by VagrantHost
    fraud involving hosting seems pretty simple to me, as you're not providing a tangilble, physical product.

    customer doesn't pay > customer doesn't have hosting.
    Customer pays with a stolen credit card number > customer has hosting, until the chargeback happens.

    That's the more common problem.
    Specializing in SEO and PPC management.

  6. #6
    Join Date
    Mar 2004
    Location
    na
    Posts
    256
    Add on to that, they will start spamming or doing illegal stuff before you realise the chargeback.

    That's the "not-so-simple" part i suppose.

  7. #7
    Join Date
    Jan 2003
    Posts
    198
    What if the frauder provide a valid phone and able to contact regarding the order. However using a stolen CC.

    In another instance, similar to the above, but he is the owner of the credit card. And only way to stop charge-back is have them fax a contract signed with his ID, but this adds inconvinience to the customers.

    Also what would you ask even the phone connects to the "purchaser"?

  8. #8
    Originally posted by Wako
    What if the frauder provide a valid phone and able to contact regarding the order. However using a stolen CC.
    then the would-be scammer is incredibly stupid, as you would then simply call the authorities in his area and report his illegal activity.
    Vagrant Web Hosting - U.S. / CANADA
    Website Hosting - Website Development - Content Management
    NEW: Windows Hosting w/ ASP.NET

  9. #9
    Join Date
    Mar 2004
    Location
    na
    Posts
    256
    I believe no fraudster will ever want to sign a contract for no charge-back even genuiene customer. That's what I think.

    As for phone contacts, I am sure the standard items: Contact Name, Address, Credit card number, expiry date and etc. However, I would think no one will put a valid phone for a "Stolen card case". For this, I mean valid landline and not mobile number. At least I have never heard of.

    Any other views?

  10. #10
    Join Date
    Mar 2003
    Location
    Edmonton, Canada
    Posts
    380
    I will check the IP address used at signup to the location on the order form. If they don't match, account setup approval is held back. All hosting orders we receive go through a approval process. On average we setup most sites within a hour of receiving the order, although one site which we questioned and had to investigate further, took 24 hours to be setup. We do not, and will not use Instant Set-up. Especially as on-line fraud has increased as much as it has in the last 4 years.
    Glen Millar
    Tyger Hosting Services
    http://www.tygerhosting.com
    Affordable Direct Admin Linux Hosting Since 2003

  11. #11
    Join Date
    Jan 2003
    Posts
    198
    How do you know it is not mobile?
    Sometimes people only have mobile as their primary contact, how to deal with that?

    In my pass experience, I have a strange charge-back, we were providing service, not web hosting related. We called the phone in the sign-up, and verified the order, but no contract signed.
    But around 1 month later, we had this charge-back, reason is "did not authorize"
    How do you handle something like this, or prevent it?
    We cannot provide enough proofs to say he did order it, because all are through phones.
    It seems if they are serious about making fraud order, they could do it easily. Or not?

  12. #12
    Join Date
    Mar 2003
    Location
    Edmonton, Canada
    Posts
    380
    Unfortunately, there are many people who misuse Credit Cards. I worked with a major International Hotel chain in their Security Department. I once arrested a person whom the issuer requested we detain as they would use their credit card for a service, and then later decline the charge. The issuer charged them with fraud and the perpertrator was convicted. He got a $200.00 fine. Yep. That was it.

    There is no 100% foolproof way to prevent credit card fraud as long as you accept credit cards as a form of payment. None. Zero. Nada. Only way to prevent credit card fraud is not to accept them. At all. Period.

    And no host will last that does a COD policy.
    Last edited by iTec Hosts; 04-22-2004 at 11:23 PM.
    Glen Millar
    Tyger Hosting Services
    http://www.tygerhosting.com
    Affordable Direct Admin Linux Hosting Since 2003

  13. #13
    Join Date
    Aug 2000
    Location
    NYC
    Posts
    6,627
    Originally posted by VagrantHost
    then the would-be scammer is incredibly stupid, as you would then simply call the authorities in his area and report his illegal activity.
    How many localities, in any country, do you think there are where you could call local police and say that someone used a stolen credit card to buy a web hosting account and expect to see anything happen? I'd put that number at roughly zero.
    Specializing in SEO and PPC management.

  14. #14
    Join Date
    Mar 2003
    Location
    Edmonton, Canada
    Posts
    380
    It is actually the Credit Card companies that do most of the reporting of fraud cases to the police where the police act upon the complaint. Infact they are treated as a "in action" type call and given a high priority. Credit Card companies have speed dialers to police in a number of major cities (this is fact) and when the police receive a "fraud in progress" complaint, they handle them as they would any high priority call involving fraud.

    In the case of the apprehension I made mentioned above, police were on scene within 2-3 minutes.

    Credit card companies take this kind of abuse seriously. And they act and act quickly when there is a chance to have police apprehend and press charges. Those businesses who use their own Merchant accounts and only accept cards from people in person only are the ones who will see this the most.
    Glen Millar
    Tyger Hosting Services
    http://www.tygerhosting.com
    Affordable Direct Admin Linux Hosting Since 2003

  15. #15
    Join Date
    Jan 2003
    Posts
    198
    Originally posted by JayC
    How many localities, in any country, do you think there are where you could call local police and say that someone used a stolen credit card to buy a web hosting account and expect to see anything happen? I'd put that number at roughly zero.
    This is what I am wondering.
    How can we fight frauds without tools.

  16. #16
    Join Date
    Aug 2003
    Posts
    2,734
    Just say alert and I recommend FraudGuardian.com

  17. #17
    Greetings:

    We use H-Sphere from http://www.psoft.net/

    H-Sphere includes "Signup Guard" which provides rules for when human moderation should take place.

    If the rules are passed, including credit card validation and address verification, then accounts are provisioned automatically.

    Since we moved to H-Sphere (approximately 18 months ago), we've had zero cost impact due to on-line fraud.

    Thank you.
    ---
    Peter M. Abraham
    LinkedIn Profile

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •