New iDenfy Tool Identifies Fraudulent IP Addresses

iDenfy has released a new Proxy Detection tool that verifies the IP address being used for each transaction. The tool is designed to prevent fraud, and does so by blocking any transactions that originate from an IP address that is running malware or has been associated with fraudulent activity.

The challenge, according to iDenfy, is tracking down a fraudster’s actual IP address. The company noted that the vast majority (over 95 percent) of fraudulent activity is carried out with a proxy address that masks the user’s true location. A proxy address makes it more difficult to track a fraud event to its source, and allows fraudsters to remain undetected.

iDenfy’s Proxy Detection tool gives financial institutions more insight into those proxy accounts. The solution monitors internet and black market activity on an ongoing 24/7 basis, and flags anonymous IP addresses, hosting providers, and VPNs that could be indicators of suspicious behavior. The algorithm then analyzes those addresses to determine whether they have signs of malware, or if someone has used the same address to commit fraud in the past.

“Our product services are focused on ensuring that users’ ID verification process is accurate and extremely thorough, and this new product helps us to build on that even further,” said iDenfy CEO Domantas Ciulde. “It gives companies peace of mind, knowing that they can detect any instance where a criminal is behind an online transaction.”

Since Proxy Detection provides ongoing coverage, it can eventually clear IP addresses that have been scrubbed of malware and are no longer being used by cybercriminals. The solution will supplement iDenfy’s existing biometric onboarding technology, which uses face and document recognition to verify the identities of new users. The company’s technology is currently being used by several financial services, including PanPay, KogoPAY, and the Emirex and Impily cryptocurrency exchanges.

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May 20, 2021 – by Eric Weiss