How GoodLeaf Hosting Protect Their Business From Fraud
Country
United States
Meet
GoodLeaf Hosting
GoodLeaf Hosting offers a comprehensive suite of hosting solutions, including website hosting, VPS hosting, dedicated server hosting, and colocation services.
Currently, they operate out of five data centers globally which are located in the United States and Europe, ensuring global connectivity and DDoS-protected services. Founded in 2017, GoodLeaf Hosting has experienced significant growth and expansion.
"Since implementing FraudLabs in March 2024, we've successfully blocked over $225,000 in fraudulent transactions. Their SMS verification and IP transit features have been absolute lifesavers by stoppping all fraudulent transactions."
Nathan B., CEO of GoodLeaf Hosting
The Challenge
GoodLeaf Hosting was encountering huge volume of fraud orders with suspicious characteristics, including incomplete addresses and multiple failed card attempts. Sometimes, a card would be accepted after 20 card attempts without raising a red flag. Despite multiple failed attempts, fraudulent transactions were often approved through 3D Secure's frictionless flow. Furthermore, a large portion of these orders were originated from VPNs, making it increasingly difficult to identify and prevent fraudulent activity.
Initially, they tried blocking VPNs, which helped somewhat, but fraudulent transactions were still getting approved in Stripe. They also attempted to manually review transactions where addresses were far away, but this approach didn't work well.
The Solution
In search of a robust solution, GoodLeaf Hosting turned to FraudLabs Pro for the fraud prevention solution. By implementing FraudLabs Pro SMS verification feature, GoodLeaf Hosting added an essential layer of security, requiring customers to verify their identity via SMS before completing a purchase. In addition, a fraud validation rule was added to flag transactions originating from VPNs for manual review and closer inspection. This combination of measures proved highly effective, completely eliminating fraudulent orders.
The Results
The uses of FraudLabs Pro has yielded remarkable results for GoodLeaf Hosting. Since using FraudLabs Pro automated fraud screening service, GoodLeaf Hosting has experienced a dramatic decline in fraudulent transactions, blocking over $225,000 in potential losses. They no longer have to manually review transactions or fret about fraudulent orders slipping through the net. The SMS verification feature has significantly reducing fraudulent order attempts by verifying the users identities. Moreover, the ability to flag and review VPN-based transactions has enabled proactive identification and prevention of suspicious activity. As a result, GoodLeaf has not only protected its revenue but has also enhanced customer trust and satisfaction.