How IP Risk Scoring Prevents Fraud

Free IP lookup API to uncover fraud, bots, and high risk users.

In a related post, we explain how IP risk scores are calculated. The next logical question is, “Great, now how do you use the risk scores?”

This post explains how to use these scores to protect network integrity without disrupting your business. This involves connecting an API and deploying them, which we cover in this post. In the following sections, we’ll explore practical strategies for translating IP risk intelligence into actionable security protocols that balance protection with user experience.

Using An IP Risk Scoring API

IP scoring can benefit any online service concerned about the quality of visitors. This process involves integrating an IP risk service API with the server to analyze every incoming IP address and providing real-time fraud score data. Once connected, the system can automatically report and analyze traffic, offering valuable insights into the quality and potential risks associated with visitors.
Here’s how this process works in more detail:

  1. API Integration: This starts by creating permissions between your server and an IP risk service API.
  2. Traffic Analysis: As visitors access the online service, their IP addresses are instantly analyzed by the API and given a risk score.
  3. IP Quality Filtering: Based on defined thresholds, the system can automatically filter out or identify IPs with high-risk scores.
  4. Customization: Networks can customize their threat tolerance according to internal controls and emerging fraud threats.
  5. Automated Reporting: Through continuous reporting on traffic quality, you can identify trends and take action.

By implementing IP scoring, online services can enhance their fraud prevention capabilities, protect against malicious activities, and ensure a safer environment for legitimate users.

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How 4 Industries Use IP Risk Scores

IP risk scores have become indispensable tools for several industries. They help businesses guard against fraud while improving their user experiences. Once you’ve connected to the API and have data coming in and out, you can flag IPs for review or block visitors altogether.

Here’s a look at how four business sectors use IP risk score APIs to protect their data.

Marketers / Ad Performance
Every dollar wasted on a non-competitive click or impression hurts your return on ad spend. Ad exchanges, SSPs, DSPs and marketing departments all enhance their campaign efficiency by using an IP risk scoring service.
  • Filtering out bot traffic and click fraud to ensure accurate metrics
  • Optimizing ad placement based on user legitimacy
  • Reducing wasted ad spend on non-human or malicious interactions
  • Improving overall return on investment (ROI) for digital advertising efforts
Retailers / Fraud Prevention

Many large-scale e-commerce sites employ IP risk filtering to strengthen their overall security. The larger a retailer is — whether through reach or inventory — the more vulnerable it is to fraud; that said, any online retailer (B2C, B2B) can use IP risk scoring for:

  • Identifying and blocking high-risk transactions in real-time
  • Reducing chargebacks and financial losses due to fraudulent purchases
  • Implementing adaptive authentication measures based on risk levels
  • Balancing fraud prevention with a smooth checkout experience for legitimate customers
Platforms & Websites / User Experience
Fraudsters will target any type of platform that employs user logins. They want your customers’ and visitors’ private information.  Platforms and websites use IP risk scoring APIs for:
  • Preventing account takeovers and unauthorized access attempts
  • Reducing spam and abusive content by flagging suspicious user accounts
  • Implementing risk-based access controls for sensitive features or data
  • Maintaining a safe and trustworthy environment for genuine users
IT Professionals / Network Monitoring
Whether it’s a public or private network, there’s always a need to monitor visitor traffic. IP risk scoring automates this process and can alert system administrators to suspicious users or activity. This improves network security and empowers admins to prevent possible fraud or attacks.
  • Providing real-time threat intelligence on potentially malicious IP addresses
  • Facilitating proactive measures against DDoS attacks and other cyber threats
  • Offering detailed insights into traffic patterns and potential anomalies
  • Enabling more effective resource allocation and security policy engagement