How IP Address Analysis Can Prevent Fraud

IP address analysis is an essential part of preventing fraud. It can reveal information to help you catch potential fraudsters and stop fraud in its tracks.
By 

Daniël de Jager

 on August 31, 2022. 
Reviewed by 

Joshua Genuth

Internet protocol (IP) addresses form an essential part of the internet's functionality. Every device connected to the internet has to have an IP address so that the websites and servers it connects to know where to send the data. In a sense, IPs can be looked at as the street addresses of the web.

IP addresses can be linked to a specific internet service provider (ISP), and that provider can then follow the trail to a specific client, exposing potential fraudsters. However, fraudsters are becoming more and more sophisticated by deploying tactics like cloaking their IP addresses with VPNs and other proxies. With payment fraud becoming an increasing problem for online businesses, fraud managers need all the help they can get.

How Does IP Analysis Prevent Fraud?

IP address analysis is essential to fraud detection because it reveals a lot about the connected device. Fraud managers can use such analyses for fraud prevention in crypto, payment fraud protection, and more.

Luckily, there are also cutting-edge anti-fraud solutions available to obtain even more protection. An especially useful tool for fighting digital goods fraud is an IP lookup service, which reveals IP data such as its geographic source and the software used. Through a reverse DNS lookup tool, managers can expose the name of the IP address on a network. With an advanced proxy check, you can see if an IP address is using a proxy or VPN in an attempt to cloak its true source.

Manually entering an IP address into all those tools can become tedious very quickly, which is why an automated fraud detection and prevention platform like nSure.ai can make a huge difference when trying to root out fraud attempts. Its predictive AI fraud detection can quickly detect and block fraud, giving online businesses the security to focus on doing what they do best.