New IP geolocation technology
ReD announced an upgrade to its IP Geolocation detection technology which enables ReD to track fraud threats using IP identification and geolocation information.
This is an important development for retailers because the use of IP geolocation technology as part of a risk strategy means that the genuine origin location of an online order can be quickly and accurately checked. Merchants are then able to decline suspicious transactions.
Payment fraudsters trick the merchant by anonymising their IP location. This means the computer location cannot be seen and, in some cases the device can be made to appear in a location that it is not. For example, a computer user based in Africa could make their IP address appear like it originated in the US and vice-versa.
Erika Gallo, Director of Global Risk Management at ReD commented: “IP anonymizing has been a long-standing issue for many retailers, spikes in fraud from certain countries has, in some cases, led to a halt in international expansion. In an ideal world, retailers would like to be able to accept all genuine orders, wherever they originate from – working with ReD allows retailers to do this.”
The new advances in geolocation technology deployed by ReD means that wherever fraudsters try to hide, ReD’s technology will always locate their true IP location.
Paul Stanley, CEO of ReD said: “The new IP geolocation technology identifies and tracks IP addresses flagged as “Anonymizer”. On average, rules with “Anonymizer” flagged in conjunction with other ReD Shield services, have a 50-70% cancellation rate, and since its trials, there has been a 30 to 50% improvement in orders processed successfully.