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Protecting myself from Fraud

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Join Date: May 2004
Location: United Kingdom
Posts: 5

Protecting myself from Fraud


This is my first post on here so please be nice ;-)
Basically, I have been doing some research on entering the reseller market as I plan to start my own web hosting company. I have found a good reseller company that uses Cpanel on their servers - I am planning to use modernbill, whmautopiolet or phpcoin to automate payments along with PayPal (once I receive more income I will upgrade to WorldPay).

The question I want to ask you is this - if I use an automated billing program and PayPal, will I be leaving myself open to fraud? Will people sign up with fake CC numbers in order to send spam and what not?

What measures do you more established web hosts use to prevent fraudulent orders and what would be the best way to protect myself?

Thanks in advance for any help you can give!
Leweq22 (Lewis)

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Join Date: Jul 2003
Location: Goleta, CA
Posts: 5,550
People are going to try to fraud you no matter what you do just screen the orders and you should be fine.

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Join Date: May 2004
Posts: 100
first of all, if you have their ip, use this to track their location:

compare the city & country provided by them to the one the above site displays for thier ip, if its different, their obviously trying to put in a fake address...

you could also further crack it down by using the phone number they provided:

i would call all customers & verify the details before creating their account

hope this helps...

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Join Date: May 2004
Location: United Kingdom
Posts: 5
I was just looking at the Clientexec product info page and I saw this feature:

New clients must be approved or rejected (fraud prevention).
Does anyone use this feature and can it prevent fraud? Oh and thank you for that post Jubinrr, your method seems to be secure but don't you find it time consuming to do that for each and every customer?


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Join Date: Mar 2004
Location: na
Posts: 256
you could also further crack it down by using the phone number they provided:
I don't think this will work because I have tried using a fake number. It will still show up. I doubt I am at all that lucky to strike a 11 number.

Web Hosting Master
Join Date: Mar 2004
Posts: 1,301
it is time consuming Lewis, but in the end you wouldnt want to chargeback the customers whose credit cards have been stolen, right?


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