Proxy detection is an important component of online fraud detection applications. Sophisticated fraudsters may bypass geolocation controls by using proxies to spoof their IP addresses and, hence, their locations. Proxy detection is necessary to detect such spoofing.
Besides payment fraud, proxy checking is needed for any application where IP geolocation is used to authenticate online transactions to protect from IP address spoofing.
The Proxy Detection Web Service detects both anonymous and open proxies. Open proxies are compromised computers that allow traffic to be routed through them. Such proxies are popular with fraudsters.
To best protect against online fraud or abuse, we recommend using the minFraud service, which returns the likelihood that a given transaction is fraudulent based on a more comprehensive analysis.
This service returns a proxyScore indicating whether an IP address is a known anonymous or open proxy server.