The Hostgator verification seems to be all new. They want you to call them, or provide a copy of your drivers license or credit card to confirm it's you. They say it's to stop fraud. This is only for new sign ups though, it seems. Pretty annoying imo.
Might be annoying, but considering the sheer amount of accounts they deal with, I can't even imagine how many are fraudulent. I can't blame them at all. A lot of companies are moving in that direction.
Random people? It's a company you're trying to do business with. Far different than some random guy off the street calling you.
This was indeed good for the company since they want to minimize fraudulent transactions, and to protect you also. Just think that if your card was stolen, you'll be sure that HostGator won't accept transactions using your card that was used by someone other than you.
Most of the hosting company's today are asking the customers for a proof of id or something like this. This is only to prevent fraud.
when get selected for verification... user have to complete the process... its a painful experience, require photo id to be send to them for verification purposes. even for paypal payment (if i am not mistaken).