The following is some infomation by Daniel of HostLauncher.
This can be really sketchy sometimes. What if after handing over the passwords for your servers, some guy decides to delete everything from it for laughs?
It can happen and I'm sure it has happened before. There isn't really much you can do unless you get references and check them out.
What I also like to do is make the person scan me a copy of their drivers license so at least I know the person is who they say they are. Even then, it still doesn't solve the problem fully – I once had an employee steal my entire mailing list so he could send out his hosting offers to my customers.
If it weren't for an honest customer who got the email, I would have never known about it and he would have continued to steal my clients away from me.
You have to be on the lookout for these things.
Best Regards,