There is definitely a decent amount...

There are a lot of little things that make a big difference. As an example, BYOD options contribute to this significantly especially when coupled with instant activation.

For our residential service, we will not be offering a BYOD option like I've alluded to in the past. Provisioned hardware or softphone only. I've went into some of the reasons in the past like support/training and delivering a consistent service, but fraud is a major part of it too.

Beyond being able to more easily abuse "unlimited" plans, BYOD typically eliminates the extra processing/shipping time which a normal order would have because the credentials are provided either immediately or within a day or so. While a lot of transactions can be flagged immediately, fraudsters don't like waiting around to see if it sticks and don't like getting anything physical shipped to them because typically if the billing/shipping addresses are different, questions will be asked and if they have the ATA shipped to the "real" address of the card holder, the cardholder would notice and potentially call to ask about their new found account.

BTW, don't worry. We'll "grandfather" everyone in the BETA in if they want to continue to use alternate devices. Policies will always change from time to time, but it's always good to keep those changes targeted towards new customers when possible.

This is just one example. Our new billing system uses a score based system for orders that looks at billing address, IP location in reference to billing address, phone number NPA/NXX to billing address, etc and assigned a "score" to the order. If it's above a certain threshold, it's flagged to review before the charge is even processed. In those cases, we'll be calling the cardholder to verify.

So yes overall there will be a lot of fraud, but there are little things that can reduce it. For what it's worth, I'd say we get 100+ fraud orders a day at HostGator.