Published on Sep 14, 2023
Ghadeer Al-Mashhadi
Read time: 5m
9.4K viewer

The Battle Against E-commerce Fraud: How BIN Lookup and IP Geolocation Can Be Your Ultimate Weapon!

E-commerce fraud is a growing concern, with losses predicted to exceed $48 billion in 2023. Two powerful tools, BIN Lookup and IP Geolocation, can help combat e-commerce fraud.


With the rise of e-commerce, online fraud has become a significant concern for businesses and consumers alike. Countless incidents of fraudulent transactions, stolen identities, and financial losses have emphasized the need for effective strategies to combat e-commerce fraud. In this article, we will explore two powerful tools — BIN Lookup and IP Geolocation — and discuss how they can serve as your ultimate weapons to fight against e-commerce fraud.

Global ecommerce fraud is increasing, with losses reaching $41 million in 2022 and predicted to exceed $48 billion in 2023Ekata, a Mastercard company

Understanding E-commerce Fraud

Before we delve into the specifics of BIN Lookup and IP Geolocation, it's crucial to grasp the concept of e-commerce fraud. E-commerce fraud refers to any illegal or deceptive activity that occurs during an online transaction, resulting in financial loss for the victim. Fraudsters employ various tactics, such as stolen credit cards, identity theft, counterfeit products, and account takeovers, to exploit weaknesses in the online ecosystem.

Every $1 of fraud now costs U.S. retail and ecommerce merchants $3.75LexisNexis Risk Solutions

What is BIN Lookup?

BIN Lookup is a process that involves validating and verifying the authenticity of credit or debit card transactions. The term "BIN" refers to the Bank Identification Number, a unique set of digits embedded in the credit or debit card. BIN Lookup allows merchants to cross-check this number with a database to determine the card's issuer, country of origin, card type, and other valuable information.

By using BIN Lookup as a fraud prevention measure, businesses can identify potentially fraudulent transactions in real-time. This tool helps them detect suspicious patterns, pinpoint high-risk transactions, and take necessary actions to mitigate fraud risks. Additionally, BIN Lookup assists in identifying stolen or counterfeit cards, minimizing chargebacks and protecting businesses from financial losses.

The Role of IP Geolocation

IP Geolocation is another crucial tool in the battle against e-commerce fraud. IP Geolocation provides information about the geographical location of an internet user based on their IP address. It enables businesses to determine the country, region, city, and even the approximate latitude and longitude of the user's device.

By leveraging IP Geolocation data, businesses can detect and prevent fraudulent activities. For instance, if a customer's IP address indicates they are accessing a website from a high-risk country known for fraudulent transactions, the business can implement additional security measures or even block certain transactions altogether. IP Geolocation empowers businesses with valuable insights to make informed decisions and protect themselves from potential fraudsters.

The Synergistic Power of BIN Lookup and IP Geolocation

While BIN Lookup and IP Geolocation are powerful individually, their true potential is unlocked when they are used in tandem. Integrating these two tools into your fraud prevention strategy provides a comprehensive and multi-layered approach to combating e-commerce fraud.

By combining BIN Lookup and IP Geolocation, businesses can validate not only the card information but also the location from which the transaction originates. If the transaction involves a suspicious BIN number and an IP address from a high-risk country, it raises a red flag and requires further investigation or additional security measures. This combined approach significantly enhances the accuracy and effectiveness of fraud detection, minimizing false positives and maximizing the protection of legitimate customers.

Benefits of BIN Lookup and IP Geolocation in E-commerce Fraud Prevention

  1. Real-time Fraud Detection: BIN Lookup and IP Geolocation enable businesses to identify and flag potentially fraudulent transactions in real-time, allowing them to take immediate action to prevent financial losses.
  2. Reduced Chargebacks: By accurately identifying stolen or counterfeit cards and detecting fraudulent activities based on IP Geolocation, businesses can minimize chargebacks and protect their bottom line.
  3. Enhanced Customer Experience: Implementing robust fraud prevention measures ensures a safer online environment for customers. Legitimate transactions are less likely to be flagged or declined, resulting in a smoother and more satisfactory shopping experience.
  4. Data-driven Decision Making: BIN Lookup and IP Geolocation provide valuable data and insights that enable businesses to make informed decisions regarding fraud prevention strategies, risk assessments, and security measures.

How to Use Greip's BIN Lookup API for Card Fraud Detection

Greip's BIN Lookup API provides a convenient and reliable solution for detecting and preventing the usage of stolen or fraudulent debit/credit cards. By integrating the BIN Lookup API into your e-commerce system, you can enhance your fraud prevention measures and protect your business from financial losses. Here's how you can use Greip's BIN Lookup API effectively:

  1. Obtain an API Key: Sign up for an account with Greip and obtain an API key, which is required to access the BIN Lookup API. The API key authenticates and authorizes your requests.
  2. Capture Card Information: When a customer initiates a transaction, capture the necessary card information, including the card number. This information will be used to perform the BIN lookup.
  3. Send a Request to the BIN Lookup API: Make an HTTP request to the BIN Lookup API endpoint, providing the captured card number as a parameter (only the first 6-8 digits required). Include your API key in the request parameters.
  4. Process the API Response: Receive the response from the BIN Lookup API, which will contain detailed information about the card, such as the issuer, country of origin, card type, and additional data. Analyze this information to identify any red flags or inconsistencies that may indicate fraudulent activity (e.g: customer country compared to the card issuer country).
  5. Take Appropriate Action: Based on the BIN Lookup results, determine the appropriate action to take. If the card is flagged as potentially fraudulent, you can implement additional verification steps, contact the customer for further confirmation, or decline the transaction altogether. In cases where the card is deemed legitimate, proceed with normal processing.

By utilizing Greip's BIN Lookup API, you can add an extra layer of security to your e-commerce platform, detect stolen or counterfeit cards in real-time, and proactively prevent fraudulent transactions. Protect your business and your customers by leveraging the power of BIN Lookup in your fraud prevention arsenal.


As e-commerce continues to flourish, the battle against fraud becomes increasingly important. BIN Lookup and IP Geolocation hold immense potential in equipping businesses with effective weapons to combat e-commerce fraud. By leveraging these tools in a synergistic manner, businesses can enhance fraud detection capabilities, protect themselves and their customers, and create a secure and trustworthy online environment. Stay one step ahead of fraudsters by utilizing BIN Lookup and IP Geolocation, and safeguard your e-commerce business from the threats of online fraud.

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