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I think CCbill's concerns are legit... About 50% of the time, I use a VPN... So, altough i'm a legit user, i might signup from london, login from toronto, but my credit card is issued in Belgium....
I think it might give you a lot of negative publicity by every security freak out there (including myself)...
The other concerns are legit to... Even the GeoIP database is not that accurate, it might cost you a lot of visitors.
I do like your other idear: having to verify your cellphone. On the other hand, maybe it'll harm your signup ratio?
you would think a credit card company would file a complaint agains this guy, and put a lot of good researchers on his case? But even then, if you use a good VPN, combine it with a good proxy (or a proxy chain), and the best researcher in the world will have troubles tracking you down :-(
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