VPN and Proxy Detection: Signals, Limits, and Policy
Blog post from Didit
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VPN and proxy detection involves estimating if a connection to a service is routed through an intermediary, which can signal potential risk but does not definitively identify fraud or a user's true location. Methods such as virtual private networks, forward proxies, Tor, and carrier-grade NATs can obscure a user's actual network origin, each with different purposes and associated risks. Detection is a complex, time-sensitive classification challenge, relying on a mix of IP reputation, network ownership, routing, and behavioral evidence, but not a single definitive signal. Residential and mobile proxies are particularly difficult to classify due to their resemblance to regular consumer networks. Detection systems must adapt to infrastructure changes and consider the legitimate uses of intermediaries in corporate, educational, and public networks. A nuanced approach to detection avoids treating it as proof of fraud, acknowledging legitimate uses for VPNs and proxies, and focusing on risk-based policy responses to observed network paths and user behaviors.
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