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IP Reputation, Proxies and VPN Detection Explained

The Verix Team 2026-01-21 6 min
TL;DR

IP intelligence flags proxies, VPNs and datacenter hosting and geolocates the address — key signals for blocking automated fraud.

Why the IP matters

The IP address behind a request is one of the richest fraud signals you have. It reveals geography, network type and whether the user is hiding behind anonymizing infrastructure.

Proxy & VPN detection

Fraudsters mask their real location with VPNs and proxies. When Verix flags an IP as a proxy, you should weight that request as higher risk — legitimate users rarely sign up through anonymizing services.

Datacenter / hosting IPs

Traffic from cloud hosting providers (AWS, DigitalOcean, etc.) is rarely a real consumer. It is usually a bot or script. Verix flags hosting IPs distinctly from residential and mobile connections.

Geolocation

City and country data lets you detect mismatches — a 'US' customer signing in from an unexpected region, for example. Combine IP risk with email and phone checks for a full picture.


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