Proxy Piercing
Overview
The Proxy Piercer® feature combats fraudsters who use proxy servers to hide their actual location. Typically, the location of anyone accessing the Internet can be identified via the IP address assigned to their computer by their Internet Service Provider. A proxy server
is used as an intermediary device to disguise
a geographic location that is associated with high fraud activity. Proxy servers are used because a fraudster conducting a stolen credit card transaction wants to appear to be in the same location as the owner of the stolen card.
Fraud Detection
Kount's core technology analyzes hundreds of variables to detect fraud and risky behavior.
Kount's Fraud Platform consist of the three main pillars of an overall fraud strategy, Fraud Detection, Strategy Management and Operational Management. Proxy Piercing is just one of the many features in Kount's comprehensive solution.
The Solution
Kount uses patented Proxy Piercer® Geolocation technologies to determine in real time if the purchase transaction request is being relayed through a proxy and if so, to determine:
- True geolocation of the purchase request
- Type of network being used by the person attempting to make the transaction (certain types of networks, such as prisons, schools, and libraries, as well as anonymous proxies, can indicate an increased risk of fraud)
The Proxy Piercer feature also has the ability to detect the use of “botnets.” Botnets are networks made up of remotely-controlled computers that have been compromised without the owner’s knowledge or consent. Fraudsters use botnets to relay fraudulent purchase requests in attempt to hide the true source of their order. As with proxy servers, the Proxy Piercer feature can determine if a botnet is in use and provide the true geolocation of the fraudster accessing the botnet.
Because the Proxy Piercer feature can detect proxy server or botnet use in real-time—returning a result while the transaction is within the merchant’s system-information is passed on to the merchant’s risk assessment department before an approval is given, so that the merchant can either conduct further risk evaluation activity or if deemed necessary, decline the purchase request.