IP geolocation is a method that determines the geographic location of an online device by analyzing its IP address, which helps detect and prevent fraudulent activities like impossible travel, account takeovers, and mismatches between billing and shipping addresses. It works by using databases to match IP addresses with their respective internet service providers and regions, providing location data that is generally accurate to the city or region level. While IP geolocation is a valuable tool for identifying suspicious behavior, it can be circumvented by fraudsters using VPNs, proxies, and Tor to mask their true locations. To counter such tactics, advanced systems like Fingerprint use additional signals and data points from the user's browser and device to build a comprehensive profile, improving fraud detection accuracy. This layered approach, which includes signals for VPN detection, proxy detection, and geolocation spoofing, enhances fraud risk scoring and reduces false positives, offering a more effective defense against online threats while maintaining a smooth user experience. Implementing IP geolocation as part of a broader fraud prevention strategy requires choosing a reliable API, understanding accuracy limitations, handling false positives, and ensuring compliance with privacy regulations.