How Fraudsters Use Proxy Services to Hide Their True Identity
Fraudsters use proxies for abuse try to take advantage of your business, they need to hide their true identity. That’s why they use proxies to simulate connections that appear to come from a variety of network locations and contexts. Using these tools, they can evade detection by fooling fraud filters and scoring algorithms.
One of the most common types of fraudsters is the “insider.” This type of fraudster exploits a vulnerability in a company’s technology stack to steal money or information. Insiders can also commit other forms of abuse, including account takeover, identity theft, and sabotage.
The most effective way to detect this type of fraud is by combining proxy detection with other methods, like risk scoring, geolocation, and behavior analysis. The goal is to answer the question: Is the user really where they say they are? And if they aren’t, what is their connection to the device?
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Residential proxies are particularly dangerous for fraudsters because they allow them to tunnel into perfectly clean connections in IP ranges that service legitimate consumers. This can make it difficult to identify high risk orders coming from these proxies, especially when they’re being used with SOCKS4/SOCKS5 or elite proxies.
Other tools that fraudsters use to disguise their connections include TOR and virtual private networks. These technologies work on a higher level of abstraction than proxies, and they can be used with residential or data center IP addresses. However, these services can still be detected by fraud detection solutions that recognize network anonymization techniques based on behavioral patterns.…