Identifying VPN and Proxy IPs to Combat Click Fraud
Click fraud (generating fake clicks on online ads) has become a multi-million dollar fraud plaguing advertisers. Reports over the years indicate that click fraud could account for anywhere from 10% to 50% of all ad clicks, depending on the industry and region.
Ad networks and adtech companies, even though they might earn revenue in the short term from such fraudulent clicks, also suffer in the long run because such fraud undermines the trust advertisers have in the platform's effectiveness in combating fake clicks. To avoid reputational damage, ad networks and advertising technology providers must take serious steps to combat click fraud.
How VPNs and proxies are used to commit click fraud
One of the primary tools in the fraudster's toolset is the use of Virtual Private Networks (VPNs), proxy servers and bot farms. By identifying and blocking IP addresses associated with VPNs or proxies, advertisers can significantly reduce their vulnerability to click fraud. Let's dive into the technical aspects of this process.
- Fraudsters often use VPNs and proxies to make their clicks appear as if they are coming from targeted geographic regions, even if they aren't physically located there. This allows their fake clicks to blend in with the legitimate traffic.
- VPNs and proxies can be used rotate and change IP addresses rapidly, making it hard to discover them. Many VPNs offer ten thousands of IP addresses that may be used to make the clicks to appear random.
- If an advertiser or ad platform identifies and blocks an IP due to suspicious activity, fraudsters can easily switch to a new IP using a VPN or proxy, effectively bypassing the block and continuing their fraudulent activities under the radar.
Combating VPN and proxy click fraud
So, how can one technically identify these proxy and VPN IP addresses?
Focsec offers a easy to use API that allows you to identify VPNs, proxies, bots and TOR traffic by checking the IP address. With Focsec you can detect, flag and review IP addresses that may be associated with VPNs, proxies or botfarms. Focsec allows both one-off checks of a single IP via a web API or fast offline checking against a database. The proxy and VPN ip address databases are updated daily for accurate results.