To run a successful web hosting business one must be capable of Identifying the fraudsters who wish to order a particular web hosting package. Efficient management is essential for the smooth functioning of the web hosting business.
Here are few ways of that would help to identify the fraud orders and keep away the fraudsters spoil the business.
Verification Of The IP Address
Verification of the IP address is the first step in the order verification process. Almost every billing software shows the IP address and other information such as the host name of the IP, the country of the person placing an order with the web hosting company. Another way of checking the information is through a third party service such as the WHOIS service (www.whois.sc) or www.ip2location. Once the information is displayed, the country of the origin of the IP and the country mentioned in the order needs to be verified. The state and city details too can be cross checked. If the details matches then the order can be sent for processing. If the details does not match then its clear that the order is fraudulent. Incase you receive such an order then it should be marked as fraud and the order should be terminated.
Domain Name Verification
With the use of the third party whois service, users can get the whois details. Using these details of the person ordering the web hosting package can be cross checked for the physical address and E-mail address mentioned in the order. Genuine orders will have the details matching to the ones mentioned in the order. Yet sometimes there is a chance that the details does not match, in that case we cannot come to the conclusion that the order is fraud as the domain name might have been purchased through a company address. Hence, the domain name verification has some restrictions. In case the domain name seems senseless, then there is wide possibility that the order is a fraud order.
Disable Auto Sign-ups
If the web hosting company has enabled the facility of auto sign-ups on its web-site then a fraudster may sing-up and send spam or install Trojans or viruses for phishing purpose before you getting time to recover from the damage. So, it is recommended that the auto account creation facility should be disabled.
Usage of Third Party Fraud Detection Plugins
A web hosting company can use make the use of a third party service such as MaxMind. It is a fraud scanning software which is integrated in the billing software. It helps to identify fraud orders automatically (Note: It is not 100% fool proof).
Phone/FAX verification
Web hosting firms can give a call on the contact number provided in the order details for the purpose of identifying between fraud orders and genuine orders.
Even after every careful steps are adopted by the web hosting company, fraud orders is a never ending problem. There is no completely fool proof solution for fraud orders. But, following the above tips helps reduce the fraud order sign-ups upto a large extent.
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