VoicePulse
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- Joined
- Dec 20, 2007
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Yes, it's still true that we require a signed copy of our Terms of Service to fully activate your account. Trust us, we would really like to automate simple processes such as sign up! We've tried everything to get credit card companies and banks to enforce online "signatures" (per the E-sign Act). However, without a physical signature, the credit card companies can always reject our fraud claim by saying "well, you don't have a signature, so it's your fault", leaving us with no protection against fraud.
Normally, we would accept this as a cost of doing business, but we have already been hit by fraud in 2005 for a loss of well over $200,000. During a 6-month period, a group of fraudsters signed up for accounts with VoicePulse as well as other providers. They were using IP addresses in the US (PCs they had hacked into) and valid credit card numbers and CVC codes (from widely publicized stolen databases). The credit card companies only offer the most primitive of fraud prevention -- address and CVC code matching. When the fraudulent customers have all of this information, and it's correct, we're helpless to detect these accounts at sign up. At the end of that period, five or more VoIP providers declared bankruptcy or were involved in litigation to avoid paying their debts. VoicePulse was fortunate enough to be able to survive the loss, but it was obvious that we could no longer leave ourselves exposed.
Since implementing a requirement to fax (or scan-and-email) back a signed Terms of Service form two years ago, we have had zero fraudulent accounts. While we may relax some of the requirements in the future, it's hard to overlook the effectiveness of this method. Keeping our level of fraud so low is the only reason we can offer rates below 1¢ to anyone who wants to sign up, without a minimum commitment or multi-year contract.
We hope the minor inconvenience will be offset by our ability to demonstrate that we're putting the money to good use by investing in our infrastructure and support teams, instead of giving free calls to thieves and passing the costs onto our customers.
Normally, we would accept this as a cost of doing business, but we have already been hit by fraud in 2005 for a loss of well over $200,000. During a 6-month period, a group of fraudsters signed up for accounts with VoicePulse as well as other providers. They were using IP addresses in the US (PCs they had hacked into) and valid credit card numbers and CVC codes (from widely publicized stolen databases). The credit card companies only offer the most primitive of fraud prevention -- address and CVC code matching. When the fraudulent customers have all of this information, and it's correct, we're helpless to detect these accounts at sign up. At the end of that period, five or more VoIP providers declared bankruptcy or were involved in litigation to avoid paying their debts. VoicePulse was fortunate enough to be able to survive the loss, but it was obvious that we could no longer leave ourselves exposed.
Since implementing a requirement to fax (or scan-and-email) back a signed Terms of Service form two years ago, we have had zero fraudulent accounts. While we may relax some of the requirements in the future, it's hard to overlook the effectiveness of this method. Keeping our level of fraud so low is the only reason we can offer rates below 1¢ to anyone who wants to sign up, without a minimum commitment or multi-year contract.
We hope the minor inconvenience will be offset by our ability to demonstrate that we're putting the money to good use by investing in our infrastructure and support teams, instead of giving free calls to thieves and passing the costs onto our customers.
Phone System 