Key Challenges in Fraud Prevention for International Payments and How to Overcome Them

As global e-commerce expands, the opportunities for payment fraud also increase, as cybercriminals are always developing new schemes to hack businesses engaging in cross-border transactions and gain access to their customers' data and use it to perform international payment and cross-border transaction fraud. However, businesses are tasked with the responsibility of keeping up with the trends to protect themselves and their customers from the risks of fraudulent activities, and this can be very challenging. Some challenges faced by businesses are IP Address and BIN mismatch, proxy/VPN masking, regulatory fragmentation and others.

To effectively overcome these challenges, several techniques and tools have been developed. The most effective ones integrate and tailor all the necessary tools to protect against international payment fraud, solving problems specific to each country or region.

In this article, you are provided with all the information you need on the challenges of international payment fraud encountered by businesses and how to effectively combat them.

Effectively using data to manage fraud was the main challenge in fraud management, reported by a third of online merchants. Fraud AI/machine learning accuracy and gaps in fraud tool capabilities and features followed, with 32 per cent of merchants reporting each of these challenges – Statista

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Top Challenges in Global Payment Fraud

The challenges commonly faced by businesses during international transactions are;

1. IP and BIN Mismatch

One of the most common challenges in International payment fraud is IP Address and BIN mismatch. This means that the IP address used by customers to perform transactions does not match the geographical location of the card's Bank Identification Number (BIN), which is an indicator that the transactions might be fraudulent.

2. Proxy/VPN Masking

Fraudsters use VPNs and proxies to hide their identity in order to remain undetected by making it hard to accurately determine geolocation while performing cross-border transactions. With the use of VPNs and Proxies, fraudsters can perform Account takeover attacks, Chargeback fraud, Credit card fraud, International payment fraud and others.

3. Regulatory Fragmentation

Different countries and jurisdictions have different laws regulating payment transactions. This affects the fraud prevention process, as businesses may not be able to effectively follow all the rules and trace all international transactions, and fraudsters exploit these loopholes to gain access illegally.

4. High-Risk ASNs

A High-risk ASN is an Autonomous System Number (ASN) which has a recent history of fraudulent activities like phishing, bots, and malware. Without an effective ASN Lookup tool, it is difficult to evaluate the payment fraud risk associated with the IP address.

5. Geolocation Accuracy

The geolocation data of some users is either outdated, incorrect or masked using VPN/proxy. This is a major challenge in cross-border payment as inaccurate geolocation can lead to missed threats, thereby increasing the risk of payment fraud. However, recently developed fraud detection tools use advanced techniques combining IP geolocation, behaviour analytics, fingerprint and others to accurately detect fraudulent activities.

6. Signups With Disposable Emails/Phone Numbers

Fraudsters often use fake phone numbers or emails to create accounts or sign up on platforms, allowing them to initiate fraudulent activities. It is a common approach they use. But with data validation tools, you can check the validity of a phone number or email address.

Why Standard Fraud Tools Fail Globally

The major factors that contributed to the failure of standard fraud tools are highlighted below;

1. Inflexible Databases

Businesses need flexible databases that can adapt to new fraud patterns to enable them to detect cases of suspicious activity. To do this, they need to update their database regularly to include the recent payment methods. An outdated database will lead to an increased risk of international payment fraud.

2. Lack of Country-Specific Logic

To tackle international payment fraud, businesses need a different approach from the one required for local transactions, as the regulations vary and the techniques used by fraudsters may be different from those used locally.

3. Weak API Coverage

Application Programming Interfaces (APIs) are collections of rules and protocols that enable communication and exchange of data between one software application and other apps and systems. Its use has increased recently, and so has the risk of using it increased as fraudsters now target APIs to illegally access and alter business data. Weak API coverage causes financial losses, loss of customer trust, and legal consequences for businesses.

Features Needed for Global-Ready Fraud Tools

For a fraud detection tool to be effective against cross-border payment fraud, it should possess the following features;

1. ASN Lookups

Autonomous System Number Lookup is a feature which provides businesses with information about Autonomous Systems (AS) on the internet, thereby quickly detecting High-Risk ASNs. The information provided includes the country, state, city, longitude and latitude of their customers. While using Greip's ASN Lookup tool, you simply need to enter the AS number of the customer, and the information about the ASN would be provided to the business owners.

2. Scalable Region-aware APIs

Scalable, region-aware API are tools that can be used effectively in fraud detection for international transactions, as they can handle large volumes of data according to the regulations of specific regions.

3. IP Reputation Tracking

IP reputation tracking is a technique which involves searching a popular blacklist for an IP address or domain name which contains addresses with a history of spam, malware, or other fraudulent activities. Such IP addresses are flagged because they are reused to perform fraudulent transactions.

4. Compliance-Ready Infrastructure

An effective global-ready fraud tool must have a system designed to ensure it complies with the laws and regulations of each region, like the General Data Protection Regulation (GDPR) and others. This reduces the risk of phishing attacks, malware, regulatory violations, penalties, and reputational damage.

How Greip Solves These Problems

Greip is a company which provides solutions to the challenges faced in international fraud prevention by using advanced technology to detect and prevent fraud, ensuring a safer and more secure digital environment for businesses and their users. Here is how Greip mitigates cross-border payment fraud.

1. Integration of ASN, BIN and IP Lookup Tools

To prevent cross-border fraud, Greip offers a comprehensive database that utilises advanced algorithms and techniques to verify ASNs, BINs and IP data from different parts of the world. This allows businesses to identify suspicious IP addresses and other information in order to prevent international payment fraud.

2. Fraud Scoring with Global Insights

Greip uses advanced technologies like AI and machine learning to analyse data and patterns and detect fraudulent activities. To make it easy for businesses to identify these transactions, Greip uses global fraud risk scoring to mark each according to the location, device, and payment method used.

3. Real-time Proxy Detection

In cross-border transaction fraud, fraudsters use proxies to change their location and make it appear like they are from a different country. This makes it difficult to understand how they connect to the website. To ensure secure cross-border payments, Greip offers a real-time proxy and VPN detection tool that uses AI and Machine learning to effectively detect suspicious activities.

4. GDPR-Compliant Infrastructure

The European Union (EU) General Data Protection Regulation (GDPR) is a law that regulates data privacy and allows users to regulate their information. When businesses fail to comply with these laws, they are faced with a fine, penalty or reversal of GDPR certification. Greip ensures full compliance with international regulations like GDPR, making Greip a go-to company for businesses handling international customer data.

Conclusion

International payment fraud is a major problem, and overcoming the challenges of international payment fraud might not be easy, but with the right strategies and tools in place, business owners can significantly reduce risks and protect their businesses and customers. The implementation of Greip's services, which utilise AI and Machine Learning algorithms to detect and prevent fraudulent activities, has proven to be an effective solution to cross-border payment fraud.

At Greip, proper research has been conducted in order to be updated about the challenges most businesses face, and we have developed several techniques tailored to your needs and regions to help eliminate these challenges.

Now is the time to take action! Don't allow fraud to slow the progress of your business. Improve the security of your business by partnering with Greip and enjoy safe international transactions.

References

• Best IP Address Lookup Tools In 2025
• GDPR and Fraud Prevention: Impact of Compliance Regulations
• Identifying High-Risk ASN Networks: A Must-Know for Fraud Prevention Teams
• Fighting Chargeback Fraud in E-Commerce in 2025
• Top 5 Fraud Detection Tools in 2025