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Lots of Abuse and Fraud orders


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Hello WHMCS community,


I'm running a software development community, and we use WHMCS with the licensing addon to license our software. When people order the software for $100, and if they pay it they will receive it instantly with a license key. So this means they can use the product immediatly. I can't tell more about the software, but a lot of people just need to use it for one day and then they just open a dispute at PayPal because they had the job done in one day. (Unauthorized transaction and hacked emails?)

This means when such customer opens a dispute, I ALWAYS lose on PayPal.


Is there a way to prevent this type of abuse?


9 of the 10 times I noticed that the payment email is not the same as their registered email. So they are probably paying with a hacked paypal account. Is there a way to check for paypal email == registered email?


Thanks for your help.

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I'm afraid there is not much you can do in regards to PayPal but you could check out your customers a little more before activating the license and possibly engage in some conversation with them to get an idea of who they are.


To disable the automatic provision of the license as soon as the payment has been received you could do the following:


In the products "Module Settings" change:

- Automatically setup the product as soon as the first payment is received


- Automatically setup the product when you manually accept a pending order



In the download settings for the particular product you should also tick the box:

Product Download Tick this box if this download should only be available after a product or addon purchase


If you find the fraudulent purchases to be coming from particular countries I would recommend blocking these if they are not your target group or if the hassle with orders from certain countries is not worth the income.


What also helps is to block certain hostnames from accessing your orderforms as there are automated bots around placing fraudulent orders and even use compromised PayPal accounts.


I hope this helps.

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Try check they account and paypal if is match I also sell software sometime i got this kind of fraud but some i win and some i lost. Now I check everything if paypal have the same address that he/she use in whmcs and tester they email if working etc..

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Try setting the MaxMind score a little higher.


Set orders to be manually activated, before you activate an order check everything looks good (PayPal email matches registered email etc...). If it doesn't match, before activating the license ask them why & to provide you with proof of ID. If they are unable to do so, refund the payment and cancel the order (It is better to refund than to have a dispute, to many disputes will get your PayPal account CLOSED, refunds won't).


What software is it? Maybe offering things like a demo or a trial so people can play with it (might help with the one day purchases, assuming some are legit and just dislike the software).

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