Well I've had a fruad sign up. A customer signing up for a service and minutes later placing a claim through paypal.
(Just a warning as few other hosts have had this same person)
Name: Philip Brookhouse
Email: loomer@teacher.com

Just interested to know how you delt with it, I opened a ticket with him and paypal but am still waiting for a reply.

I was wondering, as I have placed in my TOS that puting a chargeback against us would put through a $50 administration fee, would this be counted as a chargeback?

If its a fraud order you're not going to be able to claim the chargeback...

Just resolve the claim through paypal acknowledging that its a fraud order, delete the client details and move on. Don't waste hours on it.

Well the person actually paid, then submited a complaint through paypal.

Tell paypal its a virtual service, they can't dispute those type of payments, only do a bank charge back

Thanks for your help

What it is saying is that I would need to respond to them, but there is no option to respond to paypal apart from through the helpdesk/support. Do I contact them through there?

Although it looked like they paid, they wouldn't have.

The PayPal account is most likely stolen and the fraud purchase uses that account to make the payment. Either the real account holder or PayPal's fraud detection system picks up that an unauthorized payment has been made - which is then put into temporary hold while the claim is resolved.

PayPal won't help you out getting that money if it's a virtual service AND the the PayPal account that was used to make the purchase is not verified.

Don't waste more time on it. Cut your losses and move on.

Ok, thanks. We had no loses, apart from time wasted opening tickets with the fraud buyer.

Thanks all.

Do you have any Fraud Protection Measures setup such as Maxmind? We use it and it does stop the majority of Fraud Orders getting through, although I must admit its not perfect.

Which level of Maxmind do you use ?

We have it in place where it assesses criteria and then gives us a risk estimate. We have not gone for phoning service and leave it to our techs to assess if they want to ring and confirm an order and it has been working fine for us

Cheers
Angus