Web Hosting Talk : Web Hosting Main Forums : Running a Web Hosting Business : Why fraud orders?

[midwestmerchant]

I have started getting more and more pissed off about fraudulent order's. I think about it to myself and wonder what the purpose of them are in the first place?

Why would someone use a stolen paypal to create a webhosting account and register the domain sdoa112asdf.com when they know their account is going to be deleted within a few days and the domain will be let go of?

The funniest part is, out of the few fraud orders I have seen come into my site - none of them were ever even developed. The scammers purchased some hosting, used a stolen paypal, and never even put content up. Days later the fraud was picked up by paypal and the accounts were suspended, ips blocked..etc.

If I were a scumbag trying to rip people off you would think I would be ordering things off ebay or doing something I might actually get something out of, not purchasing web hosting/domain names that will last all of 1-3 days.

Why do people do this crap in the first place?

[FenixWS]

Usually, its people either hoping the charges go unnoticed (and leave the accounts untouched untill they know) or they quickly abuse for spam puropses.

There will always be scammers, just need to be careful and make sure you ahve a decent anti fraud system.

[IH-Rameen]

Implement some anti-fraud on your billing sign up process. I suggest & recommend MaxMind (www.maxmind.com)..

FenixWS got it right as to why they sign up. It's either to put up phishing sites or just spam... Why the keep doing it? With so many hosts cropping up that think all they need is a reseller account, it's not surprising. They don't have a clue what they are doing, and so the scammers strike gold quite often since the host is after the couple of dollars rather than actually thinking things through..

[nice-price]

Paypal really doesn´t care on fraud-orders. If somebody orders via paypal and pays with credit-card, in case of cancellation the cc-transaction by fraud-customer, the mercant has to pay all cc-refund payments. It should be paypal, who should check the customer.

Had this some times. Now activated MaxMind.

[GrindKore]

Originally Posted by midwestmerchant

I have started getting more and more pissed off about fraudulent order's. I think about it to myself and wonder what the purpose of them are in the first place?

Why would someone use a stolen paypal to create a webhosting account and register the domain sdoa112asdf.com when they know their account is going to be deleted within a few days and the domain will be let go of?

The funniest part is, out of the few fraud orders I have seen come into my site - none of them were ever even developed. The scammers purchased some hosting, used a stolen paypal, and never even put content up. Days later the fraud was picked up by paypal and the accounts were suspended, ips blocked..etc.

If I were a scumbag trying to rip people off you would think I would be ordering things off ebay or doing something I might actually get something out of, not purchasing web hosting/domain names that will last all of 1-3 days.

Why do people do this crap in the first place?

Very simple, SPAM. They register a domain and then blast spam using your servers. In several hours a spammer can send tens of thousands of spam messages before being shutdown. They often open fraudulent accounts on multiple hosting service providers using stolen PayPal or CC info, by the time they are shutdown the damage is done. And the worst part, it's always free for the scammer while merchants eat chargeback fees and deal with RBL blacklisting IP addresses and pissed off customers.

[Red Squirrel]

probably spammers. They register non sense domains and put up non sense sites then try to spam those nonsense "products" (which are usually nothing). They just get a thrill out of pissing people off.

Like those spammers that will post on a forum and just post a whole bunch of links that mean nothing like http://xe.cs/df2fkf35f that lead to some site with no content.

People like this need to be shot.

[Laci]

I had one the other day that signed up for an account , did not sign up with a domain. The IP was PA , the address was NV and the phone number was Mississippi! Did 2co catch it noooooooo ... I opened a support ticket to question it... I got an email from their fraud department with the info that the transaction had gotten a PASS and to fill the order.

I was still not happy ( and without a domain what was I going to set up air ) . So I contacted them again , the support person voided the transaction because it had actually Failed.

Now I don't trust 2co's fraud protection so I've added MaxMind. I used to use another CC processor , this was my first use of 2Co ... I'm hoping to have better from them.

[appage]

Fraud has got to be one of the more annoying aspects of webhosting. I get 1 or 2 fraud orders a day. MaxMind usually catches them all but occasionally one will get through.