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Thread: New Attack on the Proxy List: Credit Card Fraud

  1. New Attack on the Proxy List: Credit Card Fraud

    There's a new risk to The Tech-FAQ Proxy List (soon The TopBits Proxy List) -- credit card fraud.

    We are seeing a large amount of credit card fraud being used to purchase both $1 submissions and proxy coupons.

    PayPal, of course, refunds the "buyers" payments when they file a dispute. Frankly, I'm tired of responding to the disputes.

    The proxy list earns about $800 in submission revenue every month. This isn't worth losing my PayPal account over.

    I'm not sure yet what we will do.
    • We may stop accepting PayPal payments. (And what then? Promote only my own proxies?)
    • We may only accept proxies and payments from verified proxy owners. (But how to verify people?)
    • We may only accept payment in NetBucks. (But then the thieves will just buy NetBucks with stolen credit card numbers).


    This is going to require some thinking. Anyone have any good ideas?
    Submit Your Webmaster Related Sites to the NB Directory
    I swear, by my life and my love of it, that I will never live for the sake of another man, nor ask another man to live for mine.

  2. #2
    Honestly, nothing will stop them. If one path is blocked, they will go through the next. I had people buy templates from my sites from stolen credit cards. They purchased ten themes, totally $400. Not fun at all.

    I tried blocking their IP, that did not stop them. They were using USA/Canada cards.

    The best solution is to not accept credit card payments, I think, if it can be done through PayPal (?)

  3. #3
    I've noticed that some I've observed using purloined CCs will only accept verified PP when THEY are selling something. I'm guessing they have insight into the scam process that we don't, so they're inadvertantly telling us what *they* consider the least risky method of accepting payment.

  4. #4
    To accept submissions only from members with more than 100 forum posts and acconts older than 3 months on netbuilders (an idea). More people will sign up here and we (the old members) can also benefit. And check every member on this forum requesting a coupon.
    ...

  5. #5
    Get a merchant account and process payments yourself? Or maybe try a different payment system like Plimus?
    Programmer, web developer and entrepreneur.

  6. #6
    Join Date
    Mar 2009
    Location
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    Can 2Checkout be an option?

  7. #7
    Hmmm, the more I think about it, if you force the scammer to buy netbucks with the stolen cc to then use to buy the listing, it does force 2-3 extra steps for them to take to use the cards. Most, not all, thieves are lazy so if you added another pre-requisite such as 50 or 100 posts on NB to be able to "buy" netbucks it might reduce the scammage a bit. You could combine the change in policy with opening the list on Top Bits as part of the "rebranding" campaign.
    Then, in parallel you also further promote NetBuilders...

  8. #8
    If there is an average time it takes for the fraud to be detected you could put a hold on the coupons being sent until it is verified or something.

    Just let me know in advance so I can order my coupons before the current one runs out.

    Also maybe have a "trusted" list with no delay for us that have been buying coupons already without any issues.

    Have a cookie that identifies us as trusted and load the usual buy a coupon page..

    If no cookie have it load another page that explains the delay and the reason behind it and a different buy a coupon page that you can recognize as a hold until (insert time here) before sending the coupon.

    Anyway, just an idea.

    Aus

  9. I think the best way is to get them verified before they're allowed to purchase the links, or just continue dealing with regular buyers.

    Block their IP (if you can) to avoid future purchase from those fraudsters. They probably can bypass this if they're using proxy but that will at least make them have a hard time to do their evil deed.
    Last edited by ReformedSinner; 19 January, 2010 at 00:14 AM.

  10. #10
    Join Date
    Jan 2009
    Location
    Philadelphia, Pennsylvania
    Posts
    1,797
    Alright. I'm not too familiar with payment systems, but you could probably do what hosting companies do.
    Implement anti-fraud measures such as:

    Blocking purchases from high-risk areas. (Nigeria, Russia, etc.)
    Phone Call/Text Message Verification, on top of e-mail verification. (Block known spam domains: .ru, etc. from e-mail.)
    Utilize a service like MaxMind - Credit Card Fraud Prevention

    If possible, could you accept only verified PayPal accounts? That usually helps to stop a lot of fraud.

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