Service Objects brings down risk with TOR detection

Santa Barbara based Service Objects, an industry leader in Real-Time Contact Validation solutions, have devised a new system to help bring down the amount of incoming fraud that merchants and processors are experiencing. Their new update for their IP address validation system called “DOTS IP Address Validation system” is designed to detect users who use TOR and VPN based connections during the checkout process.

For those unfamiliar, TOR is a free piece of software that is highly utilized in the fraud community, as it assists with anonymity. “It prevents somebody watching your Internet connection from learning what sites you visit, and it prevents the sites you visit from learning your physical location.” is one of the software's slogans. TOR is used to mask the user with an “invisibility cloak”. While VPNs are designed to send out a different IP, TOR does not send an IP out at all. When using TOR, the user can pass by any traffic or data collection systems, basically rendering them invisible to your system, hence the popularity with fraudsters.

For these reasons Service Objects has updated their DOTS IP Address Validation to detect the use of TOR users along with detecting VPNs, and Proxy servers.

“Service Objects is committed to helping businesses reduce fraud through data quality excellence. TOR Network detection further improves DOTS IP Address Validation abilities to detect suspicious transactions and alert businesses before they make a mistake in fulfilling a transaction, saving them valuable time, money and headaches in an important fourth quarter.” Service Objects CEO Geoffrey Grow added on the software update.

Service Objects utilizes over 50 different authenticated sources to supply itself with a database with millions of unique IP addresses for validation. Service Objects claims that, it is because of these sources, their software is more accurate than any other geolocation software available.

Last year, online merchants have reported a loss of over $3.9 billion due to online fraud. With the increase in sales online, that number can only grow unless the appropriate measures are taken. It is companies like Service Objects who are leading the technological forefront against online fraud.

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