Web Hosting Talk : Web Hosting Main Forums : Running a Web Hosting Business : Fraudulent Signup Losses

[AmericanBizTech]

How many hosting (isp's too) operations have taken losses from fraudulent signups? I don't mean you received a fraudulent signup and caught it but rather you took a loss because of it, chargebacks, stolen cards.. those types of things.

Do you see a certain percentage? Particular countries? Just curious as to what everyone else experiences.

Thanks,

[Brad @ Xiolink]

We check online orders pretty closely, ESPECIALLY if the origination is RIPE. 99% (all but 1) order from a RIPE IP address has been fraud.

Knock on wood, we haven't been caught yet due to our front end diligence.

[multient]

The loss from a fradulent sign up is a lot less than if you were actually sending out a tangible product to a dodgey customer. Typically you can tell if it is fradulent.

Worst case scenario you can lose a approx 3% in transaction fees and the time used to set up the account, however it doesn't run into the big dollars if you know what I mean.