Stop Proxy-Based Fraud

Stop Proxy-Based Fraud

When real-time residential proxy detection are caught, they are often accused of using a VPN or proxy server to disguise their true location. Proxies allow fraudsters to bypass security measures by disguising their true IP address, allowing them to access sensitive data and commit other illegal activities like click fraud and credit card fraud. Fraud detection tools that identify proxy use are a vital tool to keep businesses safe from deception. Tools that “pierce” the concealment of proxies can help merchants detect red flags such as high number of failed login attempts, sudden changes in behavior and discrepancies in geographic data.

Understanding Blacklisted IP Data and How It Protects Your Network

In ecommerce, fraud prevention systems often compare a customer’s billing address with their IP geolocation to prevent fraudulent transactions and avoid account takeovers. These systems are often circumvented by residential proxies that can mimic legitimate user behavior. In addition, ad platforms lose significant revenue to proxy-driven click fraud and bot traffic that looks like real user activity.

By analyzing the service field and percent_days_seen fields, ad platforms can identify which residential proxies are most commonly used for fraud and adjust their blocklists to exclude those networks. This allows them to identify and stop fraudsters while reducing the risk of blocking legitimate users. For ecommerce and financial services companies, this helps protect their customers and business and reduces the cost of detecting fraud. This is why collaborating with an IP intelligence provider and continuously updating fraud detection strategies is key to protecting your business against this evolving threat.