Residential proxies are internet connections that reroute web requests from the user’s device through an intermediary server. This technique conceals the originating IP address from the target website, making it difficult to track online behavior or determine the true originator of the request.

Generally, are residential proxies causing fraud are legal to use. However, their use in fraud and abuse situations can have serious ramifications for businesses, consumers, and even the integrity of the entire internet. Residential proxies are popular amongst bad actors for activities such as account creation, bypassing geo-restrictions for content access, ad or click fraud, free trial abuse, ATO, and more.

Are Residential Proxies Causing Fraud? What You Need to Know

Cybercriminals and fraudsters can also use residential proxies to steal data from computer systems or mess up networks by attempting to gain access to restricted resources like databases and login credentials. The use of residential proxies has become the premier way for bad actors to circumvent security measures, which can lead to costly chargebacks and other serious consequences for businesses.

To combat the abuse of residential proxies, ad verification and SEO experts can utilize anti-fraud solutions that analyze hundreds of data points about each website visitor. These comprehensive checks can reveal suspicious behaviors, including proxies used to conduct fraudulent activity, and eliminate fake traffic that harms marketing results and customer trust. In addition to this, Anura’s advanced ad fraud detection technology can detect proxies using multiple layers of analysis that go far beyond IP blocking. This ensures that the traffic marketers receive from Anura is real and delivers optimal results.