How to ignore RES, CPN and EPN from fraud validation

Ignore RES, CPN and EPN from fraud validation

Fraud validation processes are crucial for businesses to protect themselves against various forms of fraudulent activities. However, it is equally important to ensure that legitimate users are not unintentionally blocked or inconvenienced. One challenge in fraud validation is distinguishing between legitimate and fraudulent activities originating from different types of networks, such as Residential Proxies (RES), Customer Privacy Networks (CPN) and Enterprise Private Networks (EPN). This tutorial will explore the concepts of RES, CPN and EPN, as well as strategies for excluding them from fraud validation processes.

Residential Proxies (RES)

Residential Proxies refer to IP addresses assigned by internet service providers to residential users. These proxies allow users to route their internet traffic through residential IP addresses, masking their true location and identity. While residential proxies serve legitimate purposes such as privacy protection and bypassing geo-restrictions, they are also heavily exploited by fraudsters to carry out malicious activities. Residential proxies present a significant challenge in fraud validation due to the difficulty in distinguishing between legitimate users and fraudulent actors, making them the most harmful in this context.

Customer Privacy Networks (CPN)

Customer Privacy Networks provide users with anonymity and enhanced privacy by encrypting their internet traffic and hiding their IP addresses. They are often used for legitimate purposes, such as accessing region-restricted content and protecting sensitive data. However, these networks can also be exploited for fraudulent activities. Nonetheless, the impact on fraud validation is usually less severe compared to residential proxies, due to the increasing use of these networks by legitimate users. An example is “Apple iCloud Private Relay”.

Enterprise Private Networks (EPN)

Enterprise Private Networks also known as corporate or business networks, are internal networks maintained by organizations for their employees’ use. These networks facilitate secure communication, data exchange, and access to company resources. While activities originating from enterprise private networks can sometimes be associated with fraudulent behavior, such occurrences are relatively rare compared to residential proxies and customer privacy networks. Due to the controlled nature of these networks and the accountability of employees accessing them, the impact of enterprise private networks on fraud validation is generally considered less harmful.

FraudLabs Pro considers the use of Residential Proxies, Customer Privacy Networks and Enterprise Private Networks as potential indicators of fraudulent orders. Consequently, if a customer utilizes any of these networks during the order transaction, it may contribute to a higher fraud score. However, it is important to note that there are instances where the use of these networks is legitimate, such as for privacy protection or business purposes.

We recognize that some buyers employ proxies or VPNs for valid security reasons. If you wish to exclude Residential Proxies, Customer Privacy Networks or Enterprise Private Networks from fraud validation, you can adjust this setting in the merchant area settings page. Please be aware that this feature is one of the options that falls under Validation Exception and is accessible for Medium plan and above. For more information, you may refer to our pricing page.

Steps to enable the option to exclude Residential Proxies, Customer Privacy Networks and Enterprise Private Networks from validation

  1. Login to the merchant area.
  2. Go to Settings.
  3. Under the Validation Exception section, click on the Ignore Residential Proxies (RES) validation, Ignore Consumer Privacy Networks (CPN) validation or Ignore Enterprise Private Network (EPN) validation.
Example of Validation Exception for  Residential Proxies, Customer Privacy Networks and Enterprise Private Networks
  1. Click on Save.
  2. Done.

We advise against ignoring the validation process unless you are confident that a significant portion of your genuine customers regularly utilize Residential Proxies, Customer Privacy Networks or Enterprise Private Networks for their purchases. It is crucial to maintain a balanced approach to fraud prevention to safeguard your business while ensuring a smooth and secure experience for legitimate users. Therefore, carefully consider the implications before excluding these networks from your fraud validation criteria.

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