Fraud Prevention

[jkca]

I have seen a few requests for sites that hosts can lookup information for fraud, however I never see any replies directing them to a site, are there any services that out there that a host can look up a domain name and see if there has been chargebacks associated with that domain name? It seems to me that the financial system in the US uses credit scores to assess risk, why not to the same thing with domain names.

 

[Artashes]

Jay, I have heard of http://chargebackbureau.org/ and http://www.vindicia.com/ before. I do not think that we should immediately think "fraud" if there were chargebacks associated with a particular domain. With some hosting providers not delivering good service, and the growing number of those outlets, I see more often people who have a number of negative experiences.

As far as fighting fraud, most established merchant account providers include fraud screening with their services, that should be the most basic protection level. I think it gets trickier when service is rejected based on third-party information about how many chargebacks the domain had. Not sure what would classify discrimination in this case, if at all.

Best,

 

[jkca]

My concern with alot of these services is that they are keeping a database on the wrong types of information, many clients will sign up under different names from differerent locations, making a database lookup on names and IP addresses useless. What I dont see is the domain name, we recently got hit by a fraudster who uses multiple names and with stolen credit cards, however the only thing constant is the domain name of the business they operate under, I would be most interested in a database that could associate domain name information in relation to financial history of the client that owns the domain name.

 

[sailor]

do your own checks - ask for dl's and do call backs.

that will eliminate most of it. some processors will also do a callback for like 50cents when you are running a lot of small transactions and then they will guarantee no chargeback.

 

[Nobull]

We make them fill out a cc authoring form and mial or fax it back

 

[bobchrist]

This Merchant Risk Council report shows that the fraudulent chargeback has been dropped down, I don't think you need to worried about this as most of such fraud attempt are well tackled by the payment gateways itself.

"In April, the MRC released a report stating that online fraud rates were narrowing to the same levels as offline credit card fraud rates. Card-present fraudulent chargeback rates are usually less than 0.1% of sales. Forty-eight percent of online retailers surveyed said their chargeback rates matched that rate, a significant improvement over previous years".

Article source; webpronews.com/expertarticles/expertarticles/wpn-62-20060601ChronoPayAddsNameToOnlineCrimeFighters.html

 

[Kevin K]

If you use a billing system like Modernbill, Fraudguardian integrates right in with the billing system giving you a score of 1-10 based on the chance of fraud. It checks the ip location compared to the address on the order, proxy check, and more. With the proper settings you can terminate most fraud and if you are unsure about an order it can be set to pending so the account will not be automatically created. That way you can do further investigation on your end.

 

[Marks]

I'm setting up a vigorous Fraud System which would 99% be effective Real Time. However the test can only begin while the company goes into production

 

[fdcservers]

Calling and speaking to the person is good way to weed out fraud. However it is now less effective with all the VIOP numbers.

 

[lnxcode]

You could always do FraudGuardian with ModernBill?!

 

[electropopmedia]

we use maxmind through whmcs. has call features as well.

 

[LaneHost]

we use maxmind through whmcs. has call features as well.

Same setup, we use Maxmind through WHMCS works good.

If you want to try the call feature, Maxmind offers a free online demo for you to try the system out. You put you number, the automated system IMMEDIATELY calls your phone to verify your phone. This has been a great feature in helping reduce fraud.

http://www.maxmind.com/app/telephone_demo