Proxy Detection via API: How to Detect Fraudulent IPs

What Is Proxy Detection?

Proxied detection is a process where companies try to figure out the way users connect to their websites via a proxy. It is essential for blocking cyber criminals who pretend to be somebody else to commit financial or online crimes. Also check VPN proxy detection software

Proxies aren’t used only by the fraudsters. Privacy enthusiasts are looking for a way to connect to the web. Not only that, they can also save bandwidth or compress traffic that speeds up the network.

The significance of Proxy Detection for your business.

Proxies are a sign of wanting to conceal the trail of connection. It can be used to go around a geo-blocked website, or, much more troublingly, trick your fraud detection system.

 How Do Fraudsters Use Proxies?

The hackers can hide their identities and locations through the proxies. Through rerouting their internet traffic through different proxies, they can appear to be accessing websites from different IP addresses and locations, which makes it possible to hide their tracks and remain unidentified. For fraudsters, this anonymity is a tool to engage in illicit activities such as account takeovers, credit card fraud, and identity theft, while evading detection and law enforcement.

5 Types of Proxies Used by Fraudsters :

1.  Datacenter Proxies

An IP address obtained by a data center proxy will be a data center company’s IP address. Datacenter proxies tend to function as a “wall” that conceals the actual IP address but is still direct to a particular enterprise. In this view, data center proxies cannot be used for fraud for the same reason as the residential proxies.

2.  Residential Proxies

A residential proxy offers you IPs that are provided by the Internet Service Provider (ISP). Every residential rotation has a physical location which can be chosen by hand or randomly. Residential proxies are more difficult to sniff out than data centers.  Consequently, and more trusted as well. They are members of the human race and joined the well-known ISPs.

3.  Mobile Proxies

Mobile proxies use IP addressing that is known as IP addresses that belongs to mobile data network carriers. Network carriers do not hand out a single IP to a device, choosing to dynamically rotate or cycle through several depending on availability. This is highly beneficial to the fraudster as, during periods of high traffic, a great number of different users and devices may share the same IP address making it difficult to trace.

4.  Virtual Private Networks (VPNs) are.

A virtual private network albeit not a proxy in technical terms, still has the same purpose. The main distinction is that the proxy redirects your device’s traffic while the VPN works on an application basis. Meanwhile, the IP addresses remain masked and all traffic is rerouted through remote servers, not through their actual ISP. VPNs can be also from data centers or residential.

5.  Tor Network

Technically, Tor, short for The Onion Router, too, hides certain fraudulent IP addresses. Nevertheless, the fact that the exit nodes are public suggests that they can be detected fairly easily.

Proxy Detection Techniques:

Ping Test : A ping test is a mode of measuring the minimum time taken to send the smallest quantity of data.

Latency Measurements: A reasonable approach to reveal that a user is utilizing some kind of tunneling protocol is to organize latency tests.

WebRTC Test: WebRTC allows direct point-to-point communication among the users on the network. It is also a goldmine for the detection of proxies.

TCP/IP Fingerprint Test: The technique that is usable simultaneously for both proxy detection and device fingerprinting is an interesting one. The concept includes the comparison of the OS purported by the browser’s User-Agent and the OS acquired using a TCP/IP check.

Open Port Scan: Proxies will often keep ports open. If from the port that tends to be, you’ll get that you’re dealing with this or that proxy.

Other tests include:

●      Datacenter IP Test

●      Timezone Test

●      DNS Leak Test

●      Blacklists Check

●      Browser-Based Port Scanning

●      HTTP Proxy Headers Test

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