5 Reasons Why Smart Businesses Use VPN/Proxy Detection

Introduction

Presently, the use of VPNs and Proxy is high, as most individuals want to protect their online privacy. However, fraudsters take advantage of this opportunity and use it to perform illegal activities like theft. To improve security and enjoy other benefits, businesses need to implement VPN/Proxy detection strategies, which are outlined in this guide.

What are VPN and Proxy?

A VPN stands for “Virtual Private Network”. In its most potent form, It encrypts an internet connection and keeps a user's identity anonymous. This hides the user's IP address, making it difficult for third parties to track their online activities or steal personal information.

A proxy serves as a middleman between users and the global web. They improve security by changing the IP address of the computer connected to the internet to a proxy’s IP address.

Differences Between VPN and Proxy

1. Security

Proxy servers keep the identity of users hidden from websites, but they do not encrypt their connection. However, a VPN is more secure as it encrypts data before they are delivered to the client.

2. Privacy

Regarding the user's IP address, VPN and Proxy servers hide it effectively. However, proxy servers function as a middleman between a user and the web, keeping the user's IP address hidden from a web server the user visits but it does not hide the user data. VPN hides the IP address and location of the user as well as the user data, so it cannot be accessed by an ISP or router speed

How to Detect Proxy or VPN?

VPNs and proxies detection can be done through several methods:

1. IP-based Detection

IP-based Detection uses a list of known VPN and proxy IP addresses to analyze the user's IP address. If the IP address of the user is the same as that on the blacklist, then they are most likely using a VPN or proxy. This database is regularly updated by the website as VPN networks are constantly growing.

2. Browser Timezone vs. IP Timezone Comparison

This method is one of the methods for VPN or proxy detection. It involves matching the timezone given by the user's web browser with that connected to their IP address. If the timezone of the IP address does not correspond with that of the user's device, then they could be using a VPN or proxy.

3. DNS-based Detection

VPN and proxy services use special DNS servers that can be identified and flagged when they match that on a blacklist of DNS servers which is constantly updated.

3. VPN/Proxy Detection API

VPN/Proxy detection API is used to detect IP addresses that are linked to either a proxy or VPN. By detecting the use of VPNs or proxy servers, you can ensure that your website is being accessed by legitimate users and prevent unauthorized access.

Third-party services like Greip’s API are used in VPN and proxy detection. Greip’s API identifies VPN and proxy connections and allows websites to continuously include VPN and proxy detection in their systems.

Importance of VPN/Proxy detection to businesses

VPN/Proxy detection offers several benefits to businesses. Some are;

1. Fraud Prevention

Proxy and VPN hides the identity or location of users and it is commonly used by fraudsters to perform activities like Account Takeover (ATO) attacks, payment fraud, and fake registrations. Whenever such connections are observed, businesses apply extra verification steps.

2. Geo-Restriction Compliance

VPN/proxy detection makes it possible for businesses to comply with regulations specific to each region such as GDPR, CCPA, HIPAA, and PCI-DSS.

3. Cybersecurity

When hacking accounts, fraudsters use VPNs/proxies to keep their origin hidden. Businesses can protect against hacking by detecting and blocking these connections and also restricting access to personal information to recognized and verified IPs, blocking VPN/proxy traffic.

4. Operational and Competitive Advantage

VPN/Proxy detection helps mitigate unauthorized access and distribution of contents or services by spam users.

Conclusion

In conclusion, VPN/proxy detection is very important to businesses as it is effective for the prevention of fraud. However, businesses need to regularly update their database with the constantly changing VPN/Proxy technologies.

FAQs

Can I Be Tracked Through a VPN?

If you use a VPN, your IP address and web traffic cannot be traced back to you directly but to the VPN network.

Can VPN be detected?

Yes, VPN can be detected using VPN detection tools. Greip has an excellent VPN detection API.

Are proxies completely anonymous?

No, Proxies are not completely anonymous, they give out some information to the destination server but keep your online activity private.

References

Proxy vs VPN: What Is the Difference?

5 Ways to Detect VPN & Proxy to Prevent Fraud

Virtual private network