IP fraud is a growing problem for online platforms. Fraudsters manipulate IP addresses to bypass security, commit identity fraud, and launch cyberattacks. Businesses that fail to detect these threats risk financial loss, account takeovers, and data breaches.

A fraud IP check helps identify suspicious activity by analyzing geolocation, behavior, and risk patterns. Many systems assign a fraud score IP to assess whether an IP is safe or potentially harmful.

This guide explains how IP fraud works, the risks involved, and the best ways to prevent it.

What is IP fraud?

Fraudsters use various techniques to hide their identity and carry out scams. Here are the most common methods:

• Proxy and VPN abuse – Attackers use proxies or VPNs to mask their real location and switch between different IPs to avoid detection.
• IP spoofing – Hackers fake their IP address to impersonate legitimate users, often used in phishing scams and cyberattacks.
• Bot traffic – Automated bots create fake accounts, generate fake clicks, and manipulate online platforms.
• Compromised residential IPs – Cybercriminals hijack real users’ IPs through malware or infected devices.
• High-risk geolocation activity – IPs from blacklisted countries or sudden location changes trigger fraud alerts.

Websites use fraud score IP analysis to detect and block suspicious connections. Understanding these risks helps businesses and users stay protected.

How websites detect fraudulent IPs

Websites use multiple techniques to identify suspicious IPs. These methods help detect bots, scammers, and users trying to bypass security systems.

• IP reputation databases – Many platforms maintain blacklists of known fraudulent IPs. If an IP has a history of abuse, it gets flagged.
• Geolocation tracking – Websites compare login locations with past activity. If a user suddenly switches to a different country, it may raise a fraud alert.
• Proxy and VPN detection – Systems analyze whether an IP belongs to a proxy, VPN, or data center. Proxies often share IPs among multiple users, making them easy to detect.
• Behavioral analysis – Websites monitor browsing patterns, login frequency, and transaction history. Unusual activity, such as logging in from multiple locations in minutes, can trigger a block.
• Device fingerprinting – Sites collect data on browser type, operating system, and device settings. If the device fingerprint doesn’t match the IP, the system may suspect fraud.

These detection methods allow businesses to perform a fraud IP check and assign a fraud score IP based on risk factors.

Top risk factors that increase IP fraud score

Certain behaviors and settings can make an IP look suspicious. Here are the key factors that increase a fraud score:

• Using a VPN or proxy – Many fraudsters rely on VPNs or proxies to hide their real IP. While some services allow VPN use, others block these connections.
• Frequent IP changes – If an IP address constantly changes, the system may flag it as high-risk. This is common with bot traffic and multi-accounting schemes.
• Public or shared IPs – IPs used by multiple people, such as in cafes, coworking spaces, or public Wi-Fi, may have a higher fraud score due to past activity.
• Mismatch between IP and user details – If an IP shows a different country than the billing address or past logins, it may raise suspicion.
• Abnormal browsing patterns – Rapid clicks, repeated logins from different locations, and high-volume requests can signal automated bot activity.
• Past fraudulent activity – Some IPs are blacklisted due to previous fraud attempts, scams, or abusive behavior.

Understanding these risk factors helps users and businesses prevent false positives while improving fraud detection accuracy.

Best tools for IP fraud detection

Detecting fraudulent IPs requires advanced tools that analyze risk factors and provide real-time fraud scoring. Here are some of the most effective fraud IP check solutions available:

• TrustedClicks – A cutting-edge solution that helps businesses analyze IPs and user behavior. It detects fraudulent clicks, bot activity, and suspicious transactions, helping companies minimize ad fraud and security risks.
• IPQualityScore (IPQS) – Detects VPNs, proxies, and bot traffic. It provides real-time risk scoring to block high-risk connections.
• Scamalytics – Designed for businesses in high-risk industries, it assigns a fraud score IP to assess user legitimacy.
• SEON – Uses machine learning to analyze behavioral patterns and detect suspicious IP activity.
• IP2Location – Provides detailed geolocation data and risk assessment based on past IP behavior.

Using a fraud IP check tool helps businesses prevent account takeovers, ad fraud, and payment fraud by identifying high-risk connections before they cause damage.

How to lower fraud score for a safe online presence

If your IP has a high fraud score, you may face restrictions, account bans, or blocked access to certain platforms. Here’s how to lower your risk and improve your fraud score IP:

• Use a trusted internet connection – Avoid public Wi-Fi and shared networks that may have a history of fraud.
• Disable proxies and VPNs – If you need to use a VPN, choose one that provides residential or ISP IPs to reduce suspicion.
• Maintain consistent login locations – Frequently switching countries or IPs can trigger security alerts.
• Avoid automated scripts and bots – If you engage in web scraping, automated account creation, or similar activities, use ethical solutions that don’t raise red flags.
• Check your IP reputation – Use tools like IPQS or Trusted Clicks to see if your IP has been flagged in fraud databases.

Taking these steps ensures that your IP remains in good standing, reducing the chances of being blocked or flagged by security systems.

Fraudulent IPs in different industries

IP fraud affects various industries in different ways. Businesses that rely on online transactions, digital advertising, or account-based platforms must be especially vigilant when performing a fraud IP check to prevent losses and security breaches.

• E-commerce platforms – Online stores face chargeback fraud, fake orders, and account takeovers. Fraudsters use VPNs or spoofed IPs to create multiple accounts, abuse promotions, or bypass location restrictions.
• Financial services and banking – Banks and fintech companies monitor IP behavior to prevent identity theft, money laundering, and unauthorized transactions. A fraud score IP helps identify accounts linked to risky IP addresses.
• Ad tech and digital marketing – Advertisers suffer from ad fraud caused by bots and click farms that inflate engagement metrics. Platforms like Trusted Clicks detect fake clicks and bot activity to ensure genuine user interactions.
• Online gaming and betting – Fraudsters use multiple accounts with different IPs to exploit bonus programs or manipulate in-game economies. Game publishers perform fraud IP checks to detect suspicious connections and prevent abuse.
• Cybersecurity and enterprise networks – Businesses use IP monitoring to prevent data breaches and unauthorized access. High-risk IPs from blacklists or previous security incidents are flagged for further investigation.

Understanding how IP fraude impacts different industries helps companies implement the right security measures to protect their users and data.

IP fraud is a serious threat that affects businesses, advertisers, and individual users. Fraudsters use techniques like VPN abuse, IP spoofing, and bot automation to evade detection and carry out scams.