Tor, while offering legitimate privacy benefits, is frequently exploited by fraudsters for account fraud, payment abuse, and automated attacks due to its ability to mask user identities. Fraudsters leverage Tor's encrypted relays and exit nodes to evade IP-based blocking, spoof locations, dodge identification, and automate attacks, making detection complex as exit nodes frequently change and traffic is encrypted. Effective detection requires a multi-layered approach, utilizing real-time IP intelligence, behavioral analysis, and device fingerprinting to identify anomalies without alienating privacy-minded users. Tools like Fingerprint enhance detection with stable visitor IDs and a range of smart signals, allowing platforms to differentiate between legitimate and malicious Tor users, and adapt responses accordingly, balancing security with user privacy.