Proxy detection is an ability to identify the use of a proxy server when a user connects to your site. This can help you limit access to a particular region, protect individual identities, or prevent users from using a site that requires registration.
Fraudulent use of proxies is a common problem for many online merchants. The ability to hide an IP address makes it easy for fraudsters to mask their location and conduct credit card testing, account takeovers, or other repetitive activities without detection.
Advanced Proxy Detection Techniques: How to Safeguard Your Business from Cyber Threats
To detect the use of a proxy, merchants must have access to tools that can examine IP addresses and determine whether they are being used by an attacker. These tools should be able to check whether a certain IP is being used by a proxy, VPN server, or TOR exit node, and flag those connections as fraudulent.
The IP that is being analyzed is typically paired with the corresponding HTTP header. This can provide a wealth of information about the user’s browser type and version, OS, etc.
In addition, many web services maintain lists of proxies that are commonly used. These lists are generally quite robust, as proxies often change their IP addresses in order to avoid detection.
This can be very helpful in identifying fraud, as it can help merchants determine whether an order is a high risk or not. However, this is not a good signal on its own and should be combined with other data elements to make an accurate assessment.