IP Address Fraud Detection

Paul Alexander Thornton  > Tech >  IP Address Fraud Detection

Bulk IP address fraud detection is a major challenge in today’s digital landscape. Cybercriminals are constantly adapting their techniques to escape detection, which requires a sophisticated fraud prevention strategy.

IP address analysis can be an effective way to identify users’ geographic locations and prevent fraudulent activities, such as chargeback fraud. Chargeback fraud occurs when a customer contacts their card issuer to claim that they did not receive an item, or the product was defective. This practice costs businesses millions in revenue loss.

Many fraud detection solutions offer geolocation features based on an individual’s internet service provider (ISP) and the geographical location of their home or office. However, these tools have limitations and can be easily circumvented by fraudsters. For example, multiple people sharing the same ISP can make it difficult to attribute activity to a particular user. Furthermore, the accuracy of geolocation data can be affected by smartphones, remote access tools, NATs, and smart software.

Fraud Fighters: Navigating the Frontlines of Bulk IP Address Fraud Detection

The ability to detect proxies and VPN connections is another important feature of an effective fraud detection solution. Proxies are used by fraudsters to mask their identity and hide their activities online. By detecting residential proxies and VPNs, businesses can minimize the risk of fraudsters accessing their systems.

For a comprehensive and effective fraud detection solution, IP analysis must be combined with other fraud scoring technologies, such as reverse email lookup, user and device fingerprinting, and payment data. This approach allows businesses to identify and block threats before they can do damage, saving them time and money.

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