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  1. #1
    Join Date
    Aug 2003
    Location
    East Coast
    Posts
    2,062

    Fraud VPS Signups

    3 of our signups today turned out to be fraud, paypal reviewed each of the transactions and passed them.

    Now for the weird part, They all had variants of the same hostname which the letters karok in them. How would anything think that they wouldn't draw attention to themselves. I created all 3 vps accounts just to make sure I could tie them together and they were all logged into by the same IP address in Vietnam. All of the signups were from separate US ISP's. All of the phone numbers are disconnected. We went ahead and cancelled the accounts and notified paypal after returning the payments.

    113.169.71.** was the ip that accessed all 3 accounts.

    Lets keep talking about these fraud signups like we were doing with the shared hosting, it really seemed to help some people identify which signups might be fraud.
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  2. #2
    Join Date
    Jun 2005
    Location
    New York
    Posts
    2,876
    You should look into getting an auto-telephone verification system that calls the number supplied and asks the user to verify the order. These types of systems drastically reduce the amount of fraudulent orders that get through your system
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  3. #3
    Join Date
    Aug 2003
    Location
    East Coast
    Posts
    2,062
    We prefer manual verification, the only reason we activated the account (not the vps) was to log the ip that accessed the VPS control panel. We tried a lot of automated systems but in the end manual verification has always worked better for us.
    Just199.com cPanel WebHosting and VPS's
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  4. #4
    Dave,

    You really did a good job here. It seems the scammer did what ever he could to get the VPS and the fact that you logged his IP and got his location helped control fraud. I am wondering if certain countries that contribute to a lot of fraudulent signups must be banned altogether from accessing the hosting site.But then, that is my opinion.

  5. #5
    Join Date
    Oct 2010
    Location
    Vancouver
    Posts
    16
    Nice thanks for the heads up. I always though Paypal was bullet proof.

  6. #6
    Hi, It might be worth considering using Maxmind to assist with the Fraud Detection ( I believe that they do a free version) as it takes a lot of the guess work out of the game. You can still have a manual intervention in any case so you still get have the final say.

    Good Luck

    V

  7. #7
    Join Date
    Feb 2005
    Location
    Toronto, Canada
    Posts
    4,439

    Lightbulb

    We need more providers to post IPs of fraudulent signups and or chargebackers <--- is that a word lol?
    Last edited by Mr Terrence; 10-01-2010 at 10:44 AM.
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  8. #8
    Unluckly there are a lot of this kind of frauds sign-up. Anyway, most of the time, you can recognize them as you did.

    I actually also use manual verification as I believe is the best =)

  9. #9
    Try some security measures like

    1. IP and Location check
    2. Phone verification
    3.Billing address and IP check

    This will reduce if not eliminate fraud transactions.
    << Please see the Rules page for signature limitations. >>

  10. #10
    Join Date
    Apr 2004
    Location
    Singapore
    Posts
    1,497
    The best is the request government ID or driving license to match the name during the sign up. I'm sure it will eliminate all possible fraud signup.
    tanfwc
    Singapore Managed Colocation
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  11. #11
    Paypal id really a safe way to pay online ...

  12. #12
    Join Date
    Jul 2010
    Location
    root
    Posts
    236
    Quote Originally Posted by Dave - Just199 View Post
    We prefer manual verification, the only reason we activated the account (not the vps) was to log the ip that accessed the VPS control panel. We tried a lot of automated systems but in the end manual verification has always worked better for us.
    I agree with the Manual verification part but you could just add in some more beef to you're sign up part with the telephone verification system. If you use WHMCS as a billing system and then add MaxMind they allow you to add this Feature in.

    Thanks for letting us know about these orders and we will watch out for them!

  13. #13
    Join Date
    Mar 2009
    Posts
    3,803
    Quote Originally Posted by THAMAN View Post
    We need more providers to post IPs of fraudulent signups and or chargebackers <--- is that a word lol?
    Except they're probably almost exclusively third world countries where entire city-isps might be behind a single caching proxy, NAT'd, or ridiculously dynamic in some way
    mirACL: firewalls in software.

  14. #14
    Join Date
    Sep 2010
    Posts
    120
    Nasty Fraud


    You can check if the IP address matches the home address
    http://www.geoiptool.com/


    I agree with THAMAN he said:-
    We need more providers to post IPs of fraudulent signups and or chargebackers.
    Also
    Domains, Emails and name they use.

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