When fraudsters commit online payment fraud, it causes significant financial losses for businesses. To prevent this, fraud detection and prevention tools like Trustpair use a variety of features including IP risk score lookup to assess users and identify suspicious behaviors.

To calculate an IP risk score lookup Versatile fraud prevention software takes user data and feeds it through dozens of different risk rules. Each rule adds or subtracts points to the overall score. This information helps an automated system decide whether a particular user is a high, medium or low risk for fraudulent behavior.

IP Risk Score Lookup: Assessing the Threat Level of IP Addresses

This score also takes into account the location of the IP address, as well as its connection type and level of anonymity. For example, IP addresses that are associated with public libraries or Tor nodes can indicate a higher risk of fraud than residential or corporate connections. It can also indicate if the user is using a proxy or VPN to mask their true location and identity, a common trick used by cybercriminals.

In addition, an IP risk score can include details about the device a user is on, such as its operating system, browser and more. These factors help a business determine if a user’s connection is consistent with the billing and shipping information provided to the company, which can signal fraudulent activity.

It can also provide an indication if the IP is connected to a bot network, which is another red flag for fraudsters. This information is compiled from the intelligent scoring engine of IPQS, which analyzes abuse reports and online behavior to correlate malicious activity with specific IPs.