Proxy Detection

Proxy Detection web services allow instant detection of anonymous IP addresses. While the use of a proxy is not a direct indicator of fraudulent behavior, it can be a useful indicator when combined with other data elements to determine if an individual is attempting to hide their true identity. The fact is, some of the most used ISPs, like AOL and MSN, are forms of proxies, and are used by both good and bad consumers.

The fraudsters know, that is very easy to make their IP geolocation information look like it is coming from the region where their stolen credentials originated. This ability makes them look authentic, when in fact they are using a proxy to mask their true location.

Again not all proxies are equal, some are very reputable, and to cut them off would be a death-nail to your sales conversion. The goal is to use this technique to distinguish which proxies are derived from compromised computers, or from proxies that are known to be highly used by fraudsters. The generic ability to identify an anonymous proxy provides little value.