How do you handle fraud as a host?

Outside of verification and such you just have to assume a certain level of risk. Some things will come back as fraud, all you can do is eat the cost or try and recover part of the cost if it's a resold service.
 
I am using paypal services. The account information only sent to paypal verified email.

If the registered email different with paypal email, they shall still receive the account information via their paypal email.
 
hostemo said:
I am using paypal services. The account information only sent to paypal verified email.

If the registered email different with paypal email, they shall still receive the account information via their paypal email.
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If you think this will be enough to prevent fraud then i think you are in the wrong business
 
easyhostmedia said:
If you think this will be enough to prevent fraud then i think you are in the wrong business
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There are a lot of issue are out of our control. We just make it simple. If we found the order is fraud, just cancel and return what you received. Dont wait until dispute case out or fighting on the merchant.
 
Maxmind on WHMCS + 2checkout is a double win win for everyone. Also I would check manually /via phone for every order which is above $1000.
 
Maxmind is a good front line defense, but having a human look at orders is always a big game changer in reducing fraud.
 
Like others said - if you suspect fraud, refund straightaway. Stacking $15 chargeback fees will kill a business. I actually remember reading somewhere that there is a growing database for hosts to report fraudsters, but I can't for the life of me think of the name right now.
 
Richard Leik said:
Like others said - if you suspect fraud, refund straightaway. Stacking $15 chargeback fees will kill a business. I actually remember reading somewhere that there is a growing database for hosts to report fraudsters, but I can't for the life of me think of the name right now.
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I think you are referring to FraudRecord :rolleyes2
 
We use MaxMind and FraudRecord in WHMCS, so far it's worked out well. In the past we have had a few orders get past, but we catch them and deal with them as needed.

Only thing I would like to see is a more automated FraudRecord plugin that will auto check the person during the order processes, instead of needed into be manually done after the fact.
 
As @Layerbyte_Ben said wish FraudRecord was automated. It really does a good job, but checking manually each of order takes a lot of time.

Layerbyte_Ben said:
We use MaxMind and FraudRecord in WHMCS, so far it's worked out well. In the past we have had a few orders get past, but we catch them and deal with them as needed.

Only thing I would like to see is a more automated FraudRecord plugin that will auto check the person during the order processes, instead of needed into be manually done after the fact.
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This is not directly fraud screening, but if you consider that most fraud is for short term gain -- e.g., spamming, etc -- you can discourage frauds. We don't allow sending mail for non-live domains, for example.

If you get out of the mind-set that you need every single order, you can screen out a lot of fraudsters by making your hosting less desirable to them.
 
Most fraudsters wont use real names, so just looking at the name, you will usually tell if it sounds real or not, so you can do further checks
 
hostmything said:
Hello HD!
So as my thread title imply, I want to know how you handle fraudulent orders. I have received over $10,000 in fraudulent orders in the last week, and have responded by simply marking the orders as fraud.

To prevent fraud, I have Stripe.com (my CC processor) verify the zip code and CVC code of all clients paying by CC, but this does not help me if some CC ripper is the one purchasing the services. .

So far as a host, I have never had to deal with this scale of fraudulent orders :/. I get almost 5 a day now, and they take away my attention from my actual clients. 90% of them are for high end dedicated servers.
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Yeah it's an ongoing battle, they had our merchant account shut down years ago. In some cases there is just no way to tell.

I mainly make people use Paypal to be safe. To process a card it needs to be squeaky clean. I am sure I lose some quality business from this though. Especially from out of country customers.
 
We are using maxmind with phone verification. Some time we do ask for CC Statements and and snapshots for dedicated server orders.
 
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