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How do providers check for fraud?
serverbear
Member
Fraud is rampant in web hosting, I've seen some stats but nothing concrete to quote numbers.
- What tools/processes do you do as a provider to protect yourself from fraud?
Are the tools out there at the moment sufficient to make detecting fraud easy? I've seen that MaxMind seem to have an integration with WHMCS so I assume a lot of hosts use that.
Those of you that have a forum will no doubt be aware of Stop Forum Spam, a site that allows you to compare registration data with a known database. Does this exist for hosts? i.e. John Doe signs up to Host1 with a fraudulent card, Host1 identifies him & the data can then be used by other hosts when John Doe moves onto his next target.
Comments
I use maxmind and 2co integrated fraud protection. I can say that I rarely get fraudlent orders...
Even with fraud verification nothing beats manual review.
We stopped someone with a few hijacked computers and their owners financial information the other day. Signed up for multiple accounts and the bill total was in the 300+ range in which our system as well as 2CO passed.
Fraudrecord , maxmind, 2CO, etc didn't have any information on these identities. We contacted 2CO with the information and through their investigation tracked some additional stolen identities.
The tools out there rely on people manually sorting things, without that is just more fraud.
People get mad when they have to further prove identity but the same people get mad when their information is stolen and even contacted to verify. Our society sucks and everyone thinks they deserve something. /tangent
Fraudrecord by harzem. A great pice of tool if used the right way.
MaxMind will notify you if a card is fraud but passed initial check.
MaxMind does not check credit cards, they only check addresses, IPs, and phone numbers.
MaxMind + manual review of all orders in a timely fashion.
That fraudrecord tool looks pretty nifty, thanks for that!
They do now.
This. I live in Canada, but until my immigration process is complete (a year and a half, so far) my accounts are all still my US address. I trigger fraud alarms every time I sign up for something, from LEBs to Steam. How a company handles this is a big deal to me.
There's a provider I just won't do business with because I signed up for a promotion, MaxMind decided my order was fraud, and they simply deleted it and never contacted me, no notice, no nothing. When I contacted them about it I got a flippant answer, and it pissed me right off. Other people seem to like the service now, although initial reviews were pretty bad since the owner is a dick.
Predictably I've had no trouble from BuyVM or SecureDragon. I actually need to buy another VPS soon for a small project for my father's business in the US, and I'm already sighing at the thought of doing it again. I'll probably end up talking his secretary through it over the phone.
How so? According to their website they do not take credit card information and if they do, I foresee a huge liability on their part.
You can login on their site with your account and there is a form which you can fill with credit card data and they will check it and report back fraud score.
If a new client's payment is flagged fraud, and the new client actually contacts you about it... How do you typically handle that? IP over seas, billing address Canada. Client is saying its him.
I use FraudRecord and MaxMind.
If going through Google Checkout, Google have some really nice fraud detection that has detected fraud that MaxMind failed to detect.
Because I've actually been in this situation (as the customer), this is what the provider usually does. Obviously you go by your own judgement, but this is how its usually handled for me.
They use the creditcard BIN to check it, see:
http://www.maxmind.com/app/ccv#bin_checks
Maxmind --> 2CheckOut Fraud Verification --> My own opinion on the transaction.
When I make order with SemoWeb, they use 2checkout, and it took more than 1 hours. Sent a ticket, and they asked to the 2Checkout about my order. And I have wait for more hours.
It's weird. Because when with another provider and I pay with 2Chekcout, they can finish it after the payment.
For me, Maxmind is okay. Most fraud checking with Maxmind can call me and tell me the number, except with BurstNet. Tried to order twice, but no sound.
If you ask me an ID or address scan, I will give it.
how many manual checks? how do you go around doing it?
Maxmind + GeoIP + Google Maps = Not one fraud report or chargeback since opening not to mention zero abuse reports.
Nothing beats a manual check by a real human
Nothing beats a manual check by a real human
I feel violated
that means you Google Map-ed my house!
Indeed Pie, although we use map and not satellite so we haven't seen your filling :P
Actually, not the same people. I get mad when I am asked for documents which help steal identity. I do not get mad when my info is stolen because it doesnt happen, exactly because I dont give the info that could help the identity thieves.
Suppose some computer is compromised and they get my paypal email, they still have to crack the email (not very hard, but, again, I only have a debit card attached and is usually empty I put money there when I have to pay something). They cant do anything with that, but if they have copies of my ID and stuff, things would be much more dire.
People that know to protect their data and money will not accept to prove their identity, those that dont know will give their data to just anyone that asks in order to process a 3 $ payment...
M