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paypal unauthorised payments fraud
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paypal unauthorised payments fraud

During the last couple of months I have gotten atleast five such orders. Most of them were from china. The client used the VPS for 10-15 days and after that opened unauthorized payment dispute. No tickets no complaints no nothing.

I have never been victim of such scam before although I have been providing shared hosting service for about a year now. Is it that VPS services are more prone to such fraud customers? I need a real line of defence against such pricks. I am considering moneybookers/skrill as a payment method for VPS hosting and dump paypal. Do I have any other option?

Comments

  • wychwych Member
    edited May 2014

    Do you use any anti-fraud systems?

    You should also report those details on FraudRecord.

    Thanked by 1definedcode

    Taking a hiatus.

  • nope. what are they ? Can you please suggest me something.

  • I have seen it from brazil as well as one italian case which opened this and also requested a refund.
    The brazil guy did a lot of orders in various names and some managed to go through, even tho failed at manual check.
    In the Italian case, Paypal didnt give him the money back, while the brazilian guy didnt get the servers at all.

    Extremist conservative user, I wish to preserve human and civil rights, free speech, freedom of the press and worship, rule of law, democracy, peace and prosperity, social mobility, etc. Now you can draw your guns.

  • Is there a way to win an unauthorized payments claim? I got a couple of them opened right now.

    Maxmind comes free with whmcs is that right?

  • We already won one by default. Paypal checked it and decided there was no evidence of an unauthorized payment.

    Extremist conservative user, I wish to preserve human and civil rights, free speech, freedom of the press and worship, rule of law, democracy, peace and prosperity, social mobility, etc. Now you can draw your guns.

  • wychwych Member

    @stallion said:
    Is there a way to win an unauthorized payments claim?

    They usually review the evidence over a few days and respond.

    Taking a hiatus.

  • @stallion said:
    Is there a way to win an unauthorized payments claim? I got a couple of them opened right now.

    If they do it thru their bank / credit card company then you can kiss that money goodbye.

  • MaouniqueMaounique Member
    edited May 2014

    aldothetroll said: If they do it thru their bank / credit card company then you can kiss that money goodbye.

    And the customer usually has to make another Paypal account.

    Extremist conservative user, I wish to preserve human and civil rights, free speech, freedom of the press and worship, rule of law, democracy, peace and prosperity, social mobility, etc. Now you can draw your guns.

  • I don't know if it because my Paypal account is like 12 years old or something but I seem to have almost zero trouble compared to others when dealing with disputes of any kind.

    step 1: do not respond to the online claim
    step 2: call paypal let them know what the situation is and they just close the case in your favor.

    that's it...

    Sure over the years a few have not been that simple but that was due to genuine id theft. credit card fraud which obviously I am not going to object to and just accept that is going to happen at some point.

    I am no longer active here, find me at https://talk.lowendspirit.com

  • AnthonySmith said: credit card fraud which obviously I am not going to object to

    I think you should, if there is a fraud and the bank approves the transaction, they should be the ones to cover it, after all, they can afford cheap insurance for this and they should justify the fees they take somehow.
    Well, in an ideal world, that is :(

    Extremist conservative user, I wish to preserve human and civil rights, free speech, freedom of the press and worship, rule of law, democracy, peace and prosperity, social mobility, etc. Now you can draw your guns.

  • cfgguycfgguy Member, Provider

    Always send vps login details to paypal email address.

    KGR

  • wychwych Member

    @AnthonySmith said:
    step 1: do not respond to the online claim
    step 2: call paypal let them know what the situation is and they just close the case in your favor.

    >

    Maybe I should call PP more often.

    Thanked by 1netomx

    Taking a hiatus.

  • DalCompDalComp Member
    edited May 2014

    @AnthonySmith said:
    step 2: call paypal let them know what the situation is and they just close the case in your favor.

    I have to agree with this, call them when you have a problem, and it's not just limited to disputes. One time I needed to refund someone but my balance was lacking $10. I called them to ask if it is possible to charge this to the card on my account. They say they can't charge cards for anything other than purchases, but they credited the amount to my account for free (yes, a free $10) so I can proceed with the refund.

    I'm here to collect your heart

  • vedranvedran Member

    cfgguy said: Always send vps login details to paypal email address.

    How is that supposed to help?

  • MikeInMikeIn Member

    Nothing related to this topic, but I must say operator via call from Paypal does respond in a very good way and tries to help you out even if it takes a lot of time. Only one incidence though.

    Thanked by 1netomx

    Anyone selling Blesta Owned Lifetime Under $250? | Regards.

  • fitvpnfitvpn Member

    For electronic purchases so far so good, you always have switch off terminate, etc, how about if physical shipping with pay trough PayPal? PayPal take off all money and recipient got item and money back.. stupid but real.. PayPal support frauders with their system.

    Yes, I can boogie

  • NekkiNekki Member

    fitvpn said: PayPal take off all money and recipient got item and money back.. stupid but real..

    Not that stupid, there are plenty of people willing to defraud a buyer too with fake or incorrectly described items, and it only gets to that if the buyer isn't willing to take the goods back for review.

    Thanked by 1netomx

    Here lies Nekki. He loved massive amounts of storage, K-Pop and calling people cunts.

  • fitvpnfitvpn Member

    Things like MaxMad treats only innocent folks most the time, not really helps to protect from real fraud. Offer payments trough with BTC or WM and be fully protected from chargebacks

    Yes, I can boogie

  • And by and large exclude 90%+ of your target market like me who will only use PayPal.

    Thanked by 1netomx

    My personal blog and website | Freelance web developer & programmer. HTML/CSS/PHP/JS (Clientside & Serverside)/C# and more

    Installing Observium on Debian

  • fitvpnfitvpn Member

    Sure, with PP peoples just feel self more protected when something wrong.. But more and more providers start accept BTC for now,is not easy to understood for a simple folks, but is growing. PayPal afraid BTC, they wants own monopoly with internet payments.

    Yes, I can boogie

  • NekkiNekki Member

    @fitvpn said:
    Sure, with PP peoples just feel self more protected when something wrong.. But more and more providers start accept BTC for now,is not easy to understood for a simple folks, but is growing. PayPal afraid BTC, they wants own monopoly with internet payments.

    Stats and figures plz. Would be interested to see the growth curve in payments being accepted/made online with BTC.

    Here lies Nekki. He loved massive amounts of storage, K-Pop and calling people cunts.

  • netomxnetomx Member, Moderator

    @fitvpn said:
    For electronic purchases so far so good, you always have switch off terminate, etc, how about if physical shipping with pay trough PayPal? PayPal take off all money and recipient got item and money back.. stupid but real.. PayPal support frauders with their system.

    I have bought a lot of things from eBay + PayPal since 2003 without problems. Try tried to scam me twice on those years, and PayPal will always get to my favor. Why? I have 100% feedback, I can prove I haven't received the item, they can't prove they send it.

  • Yup, if you want my money then you accept it in the way I feel safest, especially in this industry.

    My personal blog and website | Freelance web developer & programmer. HTML/CSS/PHP/JS (Clientside & Serverside)/C# and more

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  • GoodHostingGoodHosting Member
    edited May 2014

    @AThomasHowe said:
    Yup, if you want my money then you accept it in the way I feel safest, especially in this industry.

    Unless you complete either of the following:

    a) Manage to have a 0.05% or less fraud risk score as calculated by Verisign AntiFraud

    b) Write out and physically sign, then either scan or take picture of a purchase release form (template in our ToS/ticket response template) authorising the purchase.

    Why (b) ? It survives past Chargebacks. It's the only thing PayPal accepts to fight Chargebacks.

    Acting Director of Albino Geek Services Ltd. My Keybase ID ( gh )
    GoodHosting.co | Enterprise KVM Virtual Private Servers | Twitter / Status : @ GoodHostingCo

  • raindog308raindog308 Administrator, Moderator

    netomx said: I can prove I haven't received the item, they can't prove they send it

    Actually, it's just they can't prove you received it. It's impossible for you to prove you haven't received the item :-)

    For LET support, please visit the support desk.

  • @fitvpn said:
    Sure, with PP peoples just feel self more protected when something wrong.. But more and more providers start accept BTC for now,is not easy to understood for a simple folks, but is growing. PayPal afraid BTC, they wants own monopoly with internet payments.

    Better yet, I can see PayPal being a Bitcoin wallet. :)

    Is inflation really at 0.5%? What a conundrum...

    eddynetweb.net | DigitalOcean referral.

  • BrianHarrisonBrianHarrison Member, Provider

    The most effective method we have at our disposal for catching these types of thieves is with FraudRecord. The more hosts that participate, the more valuable and effective the database becomes. Get started soon!

    Reprise Hosting (AS62838) Specializing in self-managed cheap dedicated servers and and cheap VPS hosting.

  • @BrianHarrison said:
    The most effective method we have at our disposal for catching these types of thieves is with FraudRecord. The more hosts that participate, the more valuable and effective the database becomes. Get started soon!

    I'd second that, it's saved me from quite a few known previous "clients" of merit.

    Acting Director of Albino Geek Services Ltd. My Keybase ID ( gh )
    GoodHosting.co | Enterprise KVM Virtual Private Servers | Twitter / Status : @ GoodHostingCo

  • fitvpnfitvpn Member

    @eddynetweb - Probably Bitcoin being PP in well known hands :) - https://coinbase.com

    Yes, I can boogie

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