Bank Scams and Resellers...

[sivvaa]

Dear all,

We get a lot of Hosting orders vide Credit Card.

All these come from US or CANADA and people take 50 MB or 100 MB.

The moment we recieve such order, we see the domain name and it will be similar to SOMEBANK.com or SOMEINSURANCE Bank.

Without Capturing the ORDER, we inform the client that Hosting SUCH sites is NOT allowed.

Now My Q is :

What happens if a reseller or an individual hosting company takes such orders and allow these sites..

As these FAKE sites are used by fraudsters to create a look alike environment or to collect Credit Card Info over mail....Will it affect the HOSTING SERVICE Provider if some legal action is taken ?

Can somebody throw light on this ? or Provide Links to articles on this...

Rgds

Siva

[Garreg]

I would imagine that if you knowingly permit these types of sites to be on 'your' account, then you have to accept some liability for their actions.
Any good business audits it's accounts and 'clients' from time to time, it's not only good policy, it a good way of providing an audit trail should the s*it hit the fan and you end up in Court... i.e. you can prove that you acted responsibly, and took preventative measure to ensure your business was 'legit'.

It's not always safe to assume that they are fake.... one of my clients is a large design company in London, their clients are Smirnoff, Team Bentley, Princes Trust etc.. etc.. Occasionally, they have used the servers here to add domains for development of sites for their clients (they develop them and I do the SEO work for them). Therefore it is quite possible that a 'genuine' client may approach and use your services.
What you need to do is 'check them out'... phone their office, speak to the person placing the order etc...

[generic]

you think someone who is setting up fradulent sites is using his/her own credit card, NOT

so if you allow them you will not get paid anyway once the chargeback is completed.

[dpyers]

moderate all sign ups.

[Brangwyn]

Originally Posted by dpyers

moderate all sign ups.

You'll still miss a few though, had one recently that was an insurance scam site. Basically I rely on abuse reports and just act on them as soon as I receive them. If the customers site is really legit, they'll contact you quickly enough to request it unsuspended.