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Why hosting providers like to use Maxmind to judge "Fraud" ？
Many times, when I purchased VPS, my order was banned by whcms,(such as Your order has been flagged as potentially high risk and therefore it has been held for manual review) most due to my account info.
This is something I can't understand. Delivery versus Payment is the fairest way to trade.We don't pay a penny less. Why the hosting providers care if their customer filled in the true info or not?
Personally, I hate leaking my address, cell phone, or other identity information in transactions even less than $10.
In fact, there are many ways to fool maxmind. I am afraid few hosting providers will believe that the information they get is completely true.So why they still insist to use MAXMIND?
The reason why I like LET is not only that it can provide cheap services, but also because it provides a platform for communication between customers and providers. Many questions, from another angle, may be suddenly clear. So who can answer me?
Comments
Maybe so they have someone to hold accountable if you start sending out spam or do other bad stuff with their server/network.
Good to have another layer of customer validation where you can minimise risk to deal with the crap later. But their detection isn't correct all the time and sometimes doesn't allow some countries or VPNs.
May loose some customers who may be good or bad.
If you don't trust your provider with your real name and location, why should they trust you with access to their network?
It all comes down to legal reasons (although I'm sure there are moral reasons for some also). In some countries it's required to know who you're doing business with because of various laws. Providers should know their local laws and should also know who their clients are. If I found out a provider I used accepted fake details I would refuse to use that host and cancel immediately, it's just not worth the risk for me to use that host IMO.
It's Simple.
If customers keep doing chargebacks, provider's payment processor such as Paypal will eventually ban them.
Maxmind helps prevents chargebacks.
Example:
Without Maxmind:
1) Customer buys VPS, customer sends spam, provider bans customers, customer does chargeback.
With Maxmind:
1) Customer attempts to buy VPS, customer denied as potential bad customer who will do chargeback.
Because maxmind is oldest and the most popular for anti fraud.
I can say: if you don’t trust your provider why do you trust to host the data.
This
I doubt there are any reliable stats on how much fraud is prevented by using Maxmind. I notice, for example, that there are providers that take bitcoin and claim they don't have issues. I think it's basically a religious issue and not one that can be discussed from a business point of view.
bitcoin is the same as bank transfer = guaranteed payment, if scammers do pay stolen cards or using their card but 6 months down the line reporting about the transaction which they clearly made. As provider how you supposed to proof that? The Maxmind calculates the distance between your IP and your address and shows additional details, not 100% fraud proof but helps prevent basic fraud, for more better protection better to use fraudlabspro.
It would be very difficult to get 100% reliable information without parallel universes here.
The best indicator I can think of would be % drop in fraud after implementation. Although even that is subjective (most of the time for us fraud comes in groups).
I really get annoying with MaxMind as it treated all dynamic IP from my ISP as fraud. Even I have never scam/cheat.
Static IPv4's price really ridiculous here in SEA region. Like US$ 25-35 per month per IP, a bit cheaper when you pre-paid for a year.
Hope when IPv6 fully roll out, it will solve this
From a hosts perspective.
Why would I want some anonymous child on my infrastructure with the potential to cause issues for other customer and with zero accountability?
We also run companies with legal requirements and regulations to keep accurate information.
We as hosts do not FORCE you to order and we do not FORCE you to enter fake details.
I wish you didn't consider "ordered from a different country IP than in account details" to be a punishable offense though. In many countries the Internet is strictly censored and filtered, so we casually browse through a VPN just all the time. Dragging a user through a round of hassle simply because they forgot to disable that, seems way too harsh and unjustified. Even in US and the like, after Snowden et al people are becoming more privacy-conscious so VPNs are the getting closer to the new norm for browsing. Why not accept it as such. It's not like you're guaranteeing yourself much with this blind geo-matching, and it's not like it's difficult to circumvent for a dedicated abuser.
Tell one country where the government will ban or jail you from ordering the hosting, VPS or dedicated server services and you are 100% required to use VPN for it? The Chinese honest customers never use VPN to order services from my experience.
They use it because it works.
OP is probably the reason why we need to filter clients.
Simple.
1) In the hosting industry chargebacks are more frequent than in others, for this reason credit card payment processors like Stripe, and sometimes PayPal too, stop accepting some companies due to the high chargeback rate.
2) When you are selling plans of $5/year, a $20 chargeback fee is huge, having a few layers of fraud detection, even if you lose some legit customers, will increase your profit overall while also reducing the headache.
For those two reasons, the use of Maxmind is quite common. Some people like to add FraudRecord to the mix and also Stripe's "Radar" if it means less chargebacks.
It sounds to me like you're deliberately misunderstanding that reality. For example, I use a VPN and it's a nuisance to change to another computer and bypass it when ordering something, so I forget and they mark me as fraud. That's downright insulting and I think there is no reason for it. Vendors also need to watch their manners and act like decent people. Being told that I'm a fraud is not nice and they should know that. In this day and age it is common to use a VPN, and it is getting more so. Really, it is none of their business whether I do or not, and it is simply the wrong thing to filter on.
Keep in mind that using a VPN is only one reason you might be marked as fraud. Your IP using Paypal accounts with different names is a common indicator too. Yes your IP may be dynamic, it may also be attempted fraud too.
You may also live in a high fraud area (either recent, or long term). For example after an influx of fraud from Brazil we started manually reviewing all payments from the region for a while.
Unfortunately you can't trust people over this anonymous network known as the internet. It's shit for both hosts and customers alike. As a customer the best thing to do if you do get tagged as needing review is to be polite and provide the information you feel comfortable providing. Don't feel comfortable, then don't sign up - simple.
If you care about your customers you do your best to prevent others from abusing the network and servers next to them. Your "best" is relative. For many, their best is using maxmind.
They most of the time bans your network but not your customer portal. So Chinese honest customers simply order services that were blocked long before XD
Yea I mean Vultr Linode and DO etc.
Web hosting is a complex business model. A bad customer will damage your network reputation and thus impacting other good customers.
Web hosting is using several online tools such as Maxmind, FraudLabs Pro or FraudRecords as blacklist checking for your historical records. If your payment is 100% genuine without chargeback risk such as direct bank payment, but you could be rejected if you have been blacklisted by other business partners.
We mainly use maxmind to avoid chargebacks from abusers, but also for legal reasons.
I don't think so. For example Cloudflare don't screen users or police your content before they let potentially reputation-damaging content go through their network. They don't even ask for your name when you sign up.
It gets complicated when the user can send spam on your network or when you take money from a customer (who can make chargebacks to make things even more complicated), but I think web hosting per se is not that dangerous.
They can contact the provider, prove their identity and still be allowed in with a reasonable one.
VPN is fine.
what i dont get is using fake details, like "Osama Bin Trump" when signing up for something.
Even in real life you need to provide your personal Information when you buy something. That's exactly what we are trying to achieve, agree, it's not 100% success and occasionally you might get false positives but there's no other way....not to mention the fake passports and Drivers License when we try to verify a Card Payment.
Thank you all,Many questions, from another angle, may be suddenly clear. I have never considered so much before. More and more like LET (￣▽￣)"
Excuse me