How does residential proxy detection work? While there are many legitimate reasons to use residential proxies (such as web data scraping and accessing geo-restricted content), criminals also employ them for fraudulent purposes such as scalping. Effectively detecting these proxies can help businesses strengthen their cybersecurity defenses and prevent various types of fraud, including account takeovers, credit card scams, and more.
How does proxy detection work?
Proxies are a popular tool for hiding one’s IP address from websites, and residential proxies in particular are highly effective at masking one’s IP. They are sourced from residential Internet service providers and therefore appear more genuine than a commercial proxy from a data center. Because of this, these proxies are less likely to be detected by websites and may even be used in tandem with ad verification services.
When a user connects to a website via a residential proxy, the server sends the request on behalf of that user. The website then sees the residential proxy IP address instead of the user’s real one, and the response is routed back to the residential proxy server, which then forwards it to the user’s original IP address. This enables users to visit websites that would otherwise be blocked by using commercial proxies, while also maintaining high anonymity and security.
Fraudsters often use residential proxies to engage in scalping activities on popular e-commerce websites, such as shoe sites. These fraudsters purchase limited edition products or event tickets and then resell them at much higher prices, effectively “skimming” the market for those items. Effectively detecting these proxies enables companies to put in place measures to limit scalpers’ influence on their sales, such as restricting purchases and implementing CAPTCHA systems.