We have a fraud prevention system that checks all new accounts for certain characteristics and attempts to determine if it is a fraudulent signup or not. On any given day, as many as 1/3 of all of our signups are fraudulent so this is an unfortunate and necessary situation.
If an account is deemed to not be fraudulent it will be set up almost immediately. However, if an account is deemed to perhaps be fraudulent it must be reviewed by a human and that process can sometimes take some time.
We are always working to improve the system and we update the rules used by the fraud prevention system regularly.
- DreamHost Head Honcho/Founder