The strange jumble of letters and numbers that makes up an Internet Protocol (IP) IP risk scores is the key to connecting any device to the global network. And while that connection is a vital part of our daily lives, it’s also a potential entry point for bad actors looking to commit ecommerce fraud. The good news is, IP risk scores help minimize the risks of threat actors entering a company’s website and making fraudulent transactions.

Fraud prevention solutions identify different risks associated with an IP address to produce an overall risk score — which is then used to block or allow transactions. Typically, IP addresses that have been connected to bots or fraudsters in the past will have a higher risk score and may be automatically blacklisted by providers.

Enhancing Security with IP Risk Scores: Identifying and Managing Potential Risks

When an incoming IP address is flagged, the reasons are explained so that you can take action accordingly. For example, it might be associated with a proxy, which could indicate that the user is trying to hide their identity, or it might have high velocity, suggesting that it’s being used as a fake device to bypass geolocation tools.

To get the most accurate results, it’s important to use a solution that uses the most up-to-date data and combines multiple methods for scoring. That’s why it’s recommended that you use a risk score that takes into account both technical impact and business impact, as well as a weight for likelihood of exploit.