Nethone launches behavioral detection of VPNs and proxies to prevent account takeover, payment fraud, and other fraud trends

[Warsaw, Poland] – August 16, 2023 Nethone, the Know Your Users AI-powered fraud prevention company, has unveiled its proprietary solution that detects VPN and proxy connections, including residential proxies, even those used by skilled fraudsters to commit a wide range of online abuses in ecommerce and financial space.

Behavioral detection by Nethone serves as a powerful weapon against such threats, effectively identifying even the shadiest VPNs and proxies predominantly used for fraudulent activities such as account takeover (ATO), account opening fraud, and payment fraud.

Precise detection of proxies and VPNs offers key benefits for merchants and financial institutions:

  • Protect against large-scale payment fraud attacks
  • Prevent browser automation, including: web scraping, account creation fraud, price or inventory manipulation (e.g., “sneaker bots” that bid on rare items)
  • Detect and stop compliance breaches in industries that require strict regulations, like gambling or crypto, by making sure customers are not hiding their true location

The company’s own darknet research has identified that more than 80% of fraudster tactics involve the use of a VPN or proxy service to carry out successful online fraud attempts. By hiding their IP addresses and true geographic locations, fraudsters avoid detection and deceive unsuspecting victims. Particularly in ATO cases, fraudsters strive to hide any info that might give them away,  and mimic the victim’s behavior once in control.

While many fraud prevention companies can detect proxy and VPN connections originating from well-known services, these detection methods often rely on easily traceable data third-party providers. What sets Nethone apart is that they don’t depend on outdated lists that may not include the latest VPNs and proxies being used by fraudsters. Instead, they actively identify suspicious behavior and potential malicious actions in real time.

Maciej Pitucha, Chief Data Officer comments: “Skilled fraudsters avoid well-known VPN services, opting for those popular among their community on the darkweb. But we manage to stay one step ahead of them and detect all VPNs, therefore blocking fraudsters from causing damage while offering genuine users a frictionless experience.”

Nethone has a dedicated Fraud Intelligence team that is constantly searching for new fraud tactics on the Darkweb to learn who and what cybercriminals have on their radar, and what new ideas they apply to succeed. They gather intelligence and reverse-engineer fraudsters’ techniques to improve fraud recognition.

VPN and proxy detection is part of a large suite of risks detected by Nethone Guard – the company’s flagship fraud prevention product. Nethone offers a free trial for developers and fraud managers interested in seeing the product in action – a no-pressure way to see how it works and explore its benefits.

About Nethone

Nethone offers a risk detection product designed to protect the entire user journey, from onboarding to post-payment, at the same time helping merchants to holistically understand their end-users (good and bad). With the award-winning Know Your User (KYU) profiling technology and AI-powered tools, Nethone blocks all risky users without friction to the good ones by exhaustively screening every single one.

Since 2022, Nethone has been part of Mangopay Group, a pan-European provider of platform payment & wallet infrastructure. In 2023, it was recognised as one of Europe’s fastest-growing companies by The Financial Times newspaper and data provider Statista. It was also the highest-ranked Polish company in the Fintech category.

For more information, please contact:
Magdalena Kowalska, Head of Marketing
magdalena.kowalska@nethone.com | +48 729 851 004

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