Vitelity: Strange Requirement

[netm@x]

When I requested Vitelity to activate International calling for my number they told me that I have jave to fax the copies of my credit card and driver's license. Actually my credit card is with them on file to use for the service and I do not understand why I have to fax the same credit card and also my driver's license. Any thoughts on this ?

 

[wardmundy]

Fraud from our friends across the sea, I'm afraid.

 

[cosmicwombat]

It is not new.

I had to do that a year ago or so. I actually like that they take precautions....

 

[psychoboy]

I have to say, I had heartache with that as well which resulted in using another provider for my international stuff. I'm not keen on providing copies of that information, and I have seen a few other posts elsewhere that reflect that same feeling. I think there has to be a beter way for them to control fraud. It's a prepaid service anyway?

 

[jroper]

Hi

The issue with Telecoms fraud is that it is unlimited.

If you go to Amazon, or some online store, and purchase something with a stolen credit card, the fraud is usually limited to:-

1. The cost of the item
2. It does not get sent out unless the payment is accepted.
3. The item goes to an address, so it can be followed by the local police.

With Telecoms fraud, the situation is different:-

You can top up numerous times with different credit cards, all stolen from the internet. Usually, Telecoms companies have a high number customers, which means that they rely heavily on automated methods and their merchant (PayPal?) to spot unusual buying patterns.

The clawback from the merchant can happen 6 weeks after purchase.

There is no particular limit to the amount you can purchase in one go and your purchased minutes are available to you immediately, and there is no reclaiming them, like you can with goods. You still have to pay your carrier charges.

The perpetrator is difficult to trace when they use online proxy services, and pre-paid mobile phones to access your services.

The perpetrator can live anywhere in the world, where it may not be easy to take legal action - with goods, you may not send them to certain countries until you are absolutely sure you have the money.

The methodology of taking a copy of a credit card and some form of identification at least proves that you are who you say you are, and that you have the physical piece of plastic with the credit card number. Something you are unlikely to have if you have done some identity theft.

I know that it is possible to photoshop a credit card, but the hope is that the fraudster will go somewhere else where the protection is easier.

There are suppliers like Worldpay who will offer insurance to cover the cost of fraud, however, this makes the cost of collecting money very high. To collect say $10 USD on PayPal costs about 7%, and given that with ever decreasing prices, the margins are ever tighter. 7% can represent a sizable portion of the profit in $10USD of calls.

If anyone has any good methods of fraud avoidance and detection, then I for one would be happy to hear from them, but at the moment, giving a picture of the front side of your credit card to a known reputable telecoms company is a good solid method of fraud avoidance. It should not be able to be used without the 3 digits on the back, so this is relatively safe.

Joe

 

[VoicePulse]

Excellent summary, jroper.

VoicePulse also does this for similar reasons that we outlined a few months back. While you may think a photocopy of your credit card is a huge risk -- it does not pose any greater risk to you than using it at an ATM or gas station. You are protected by the credit card company. The vendor on the other hand is not protected at all and is exposed to unlimited loss.

The bottom line is this: any provider that is not protecting themselves to guarantee the viability of their business is not protecting their customers. If you are fine with the possibility of your provider going out of business and taking your phone numbers down with them, that's your call to make.

 

[netm@x]

I understand the need for having a photocopy of the credit card but do not see why they also need a copy of my driver's license.

 

[jroper]

Hi

It's two pieces of information that match, of which you are likely to be the owner.

To photoshop a credit card is not too difficult. To photoshop a driving license as well, from a fraudsters point of view is getting to be a nuisance, so it is easier to go and find a softer target, and there are plenty about.

It's almost the same in the shops, when you buy soomething with a credit card, you hand your card over, they scan it, and you either have to put in your PIN or apply your Signature - hence 2 pieces of information which only you are likely to have.

It's not perfect, but you can spend a lot of money on fraud prevention, which would drive up the cost of calls, and no method is perfect. All a carrier can do is minimise the risk and incentivise the fraudster to try somewhere else.

The alternative is a bank transfer, and that is not so convenient for you, more expensive, and far more difficult to manage from the carriers point of view, and from your point of view, takes time to get the credit on your calling account, and of course does not always work seamlessly across borders.

Joe