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  #1  
Old 09-29-2010, 05:23 PM
dave - just199 dave - just199 is offline
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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  
Old 09-29-2010, 07:06 PM
XeHSean XeHSean is offline
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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  
Old 09-29-2010, 07:10 PM
dave - just199 dave - just199 is offline
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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.

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  #4  
Old 09-30-2010, 03:23 AM
premium20 premium20 is offline
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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  
Old 10-01-2010, 02:45 AM
tonycwh tonycwh is offline
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Nice thanks for the heads up. I always though Paypal was bullet proof.

  #6  
Old 10-01-2010, 08:32 AM
vpsMachine vpsMachine is offline
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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  
Old 10-01-2010, 10:41 AM
Terrence-J Terrence-J is offline
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Lightbulb

We need more providers to post IPs of fraudulent signups and or chargebackers <--- is that a word lol?

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  #8  
Old 10-01-2010, 10:43 AM
bohemienne bohemienne is offline
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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  
Old 10-02-2010, 09:31 AM
coloheart coloheart is offline
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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.

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  #10  
Old 10-02-2010, 09:55 AM
tanfwc tanfwc is offline
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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.

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  #11  
Old 10-02-2010, 11:38 AM
Sumeet Sumeet is offline
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Paypal id really a safe way to pay online ...

  #12  
Old 10-02-2010, 11:58 AM
Sturdy Aric Sturdy Aric is offline
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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  
Old 10-02-2010, 12:02 PM
quantumphysics quantumphysics is offline
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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

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  #14  
Old 10-02-2010, 12:04 PM
azaz24 azaz24 is offline
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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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