As the number of users connected to the Internet continues to grow, online fraudsters continue to employ sophisticated tactics to deceive businesses. Merchant losses from online payment fraud are expected to surpass $343 billion globally between 2023 and 2027 according to Juniper Research, which makes it important for companies to identify risky transactions as they occur.

A key component of any business’s antifraud and security systems is the ability to conduct bulk IP address risk score lookup in order to make informed decisions about a transaction. An effective IP risk score is comprised of multiple factors that help to determine a user’s potential threat level.

Bulk IP Address Risk Score Lookup: Identifying High-Risk IPs

Each of these factors is assigned a value and added or subtracted to create the final score. An example of this would be the detection of an IP using a proxy or VPN connection which increases the risk score because fraudsters use these tools to hide their identity. A user’s previous reputation and behavior is also a factor in an IP risk score. If a user has been identified as a fraudster in the past, this information is added to the current IP risk score.

An additional feature available to minFraud Score and minFraud Insights & Factors customers is the “IP Risk Reasons” output, which provides more detail about why an IP address was given a high-risk score. This helps users identify the root cause of a transaction issue, such as a large distance between the shipping and billing addresses or a high score caused by a suspicious IP address or proxy.