Checking an IP for check IP for fraud part of a comprehensive anti-fraud strategy, especially if you deal with online payments. You can use this free tool to lookup the exact location data, device information and other parameters associated with an IP address for better risk assessment. This helps you spot potential red flags and take the right action to reduce unauthorized access.
For example, if someone is trying to use their home router as a proxy server to hide their identity or conduct fraud online, many fraud detection systems would fail to identify this as fraudulent behavior because the originating IP address appears benevolent and genuine. This is one of the reasons why it’s important to combine IP verification with user and device fingerprinting technologies, such as Incognia, to provide a more complete solution against different types of fraud, including bot traffic, bonus abuse, multi-accounting, and chargeback fraud.
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Fraudsters can use stolen IP addresses to target people and their online activities, such as using their social media and email accounts to steal passwords and perform account takeovers (especially if you don’t use 2FA on those accounts). Identity thieves also leverage a person’s public information like their address and date of birth to craft convincing scam emails that will lure victims in.
As merchant losses from fraudsters continue to climb, it’s critical for businesses to improve their fraud detection strategies. While analyzing an IP address won’t send Interpol kicking down a fraudster’s door to catch them in the act of committing online payment fraud, it will help merchants understand and interpret their suspicious activity more accurately and make smarter decisions about when they should deny risky transactions.
