The Importance of an IP Address for Fraud Detection
Every device connected to the internet possesses an IP address for fraud detection. These jumbles of letters and numbers are the key to automatic connection between any device and the internet, whether it’s your laptop, mobile phone, or smart fridge.
This unique identification code makes it possible to know where a person is located geographically, revealing information about the country, region, and city from which they are accessing online services. For fraud detection and identity verification services, this is a useful piece of data that can help them detect suspicious activity, such as account takeovers, credit card fraud or payment fraud.
Combatting Fraud: Utilizing IP Addresses for Fraud Detection
However, despite the importance of the IP address as part of any fraud detection solution, it is not enough to catch fraudsters red-handed. This is because fraudsters are often able to conceal their true identities and can create duplicate accounts under different names or use a variety of different devices to carry out their nefarious activities.
Thankfully, several other tools can be used to verify user identities and identify a wide range of potential red flags that may signal fraudulent activity. This is where IP address verification comes in, but only if it’s used as one of many components of a robust risk-scoring model.
Our free IP lookup tool enables you to search accurate IP details and retrieve geolocation information, open ports, ASN, timezone and an overall IP fraud score. It can also detect a proxy, VPN or TOR connection and check the IP against blacklists for SPAM and abuse.
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