How much of your business is fraud?

energizedit

energizedit

Member
I see from another post that some people have dealt with fraudulent clients. If you've had this how much of a percentage of your business do you see fraud with?

Mark
 
Fraud attempts? Usually we get at least 1 signup every day or two (so 15-20 per month). How many get through? Very few (if any). We run fraud screening with MaxMind and voice call each signup (even in foreign countries). We do not have any automated setup, everything is done by hand by billing supervisors so that each account is screened correctly.

People failing to cancel their hosting or domain names with us, and then issuing a chargeback at the credit card company - that's a different story (we consider that fraud). We provide a service, and a person skips out on the bill, or issues chargebacks for the previous month or two. Pretty underhanded given that they receive invoices at least 14 days PRIOR to the start of the new term.

Any user who does that with us is blacklisted on our servers from any future signups. Depending on the location of the client, and the amount, we also file legal charges, along with normal credit card disputes etc.
 
We do have automated set ups on certain plans, but we're very aggressive rooting out fraud. Percentage? Haven't really compiled stats, but it's higher than we'd like, obliviously.
 
Our policy is similar to handsonhosting, we manually verify and confirm each order on the phone. Human involvement considerably reduces the chances of fraud orders passing through and at the same time it also helps in building up relationship with the clients.
 
We use MaxMind and haven't had a single fraudster who wasn't screened out yet. I'm hoping it stays that way -- chargebacks are a nightmare
 
Chargebacks must be a real pain to deal with. I've not had it with hosting but have with web design where a client decides to try the claim that they aren't happy with what I produced and thus won't pay. As of yet it hasn't worked thankfully, and so I haven't lost out much because of their tactics.
 
80% of our VPS sign-ups are fraudulent. We are thinking about disabling the ability buy a VPS through the our site. Instead we might make it so customers have to call and give us their cc info over the phone so we can verify their information.
 
Data102 said:
80% of our VPS sign-ups are fraudulent. We are thinking about disabling the ability buy a VPS through the our site. Instead we might make it so customers have to call and give us their cc info over the phone so we can verify their information.
Click to expand...

I think this way will kill your company, try to find better ways as MaxMind or something else. Hosting is e-businness, so why I need to call for somebody to buy ?
 
We use MaxMind also and haven't had a fraudulent client in years but we ALSO always have personal contact before an account is activated. If we cannot make personal contact we will refund the payments and send a notice that we want their business but must be able to speak with someone to verify the account first.
Between MaxMind's ratings & the call we don't have much problem with the fraudsters.

Note: We could use MaxMind's call system but the computer call doesn't get a "feel" for something that just doesn't seem right like a human. Their points ratings stop stolen cards & that type stuff and if it's a high score on the borderline gives us more reason to question.
 
I guess we are lucky for most of the year but when Defcon (and all the others) start up, we have some random issues with people. We hosted a high risk client that brought media around where ever he went, so I am sure most of you can put 2 and 2 together and get 25 (the number of times I would bang my head against the desk during con times). :D
 
Fraud is an unfortunate reality, and we deal with plenty of attempts daily.

If it weren't for the real people that were being hurt by these scammers, it would be amusing.

I'm not sure how many Lei Xao Leung's there are in the Ivory Coast, but apparently their credit cards aren't reliable. :rolleyes2
 
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