December 7, 2011, 5:00 PM

Retail Decisions gets better at hide and seek

Its updated IP geolocation technology makes it tougher for criminals to hide their true whereabouts.

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Retailers using recently updated IP geolocation technology from Retail Decisions, a fraud prevention and payment processing firm, may be able to one-up criminals that use technology to hide the web addresses of computers.

IP geolocation lets online retailers see where a shopper who places an online order is located. It can then use that information to see if the order is coming from a location known for a high rate of fraudulent orders, then decide if the order needs to be blocked or closely reviewed.

Anonymous web addresses could prevent a retailer from knowing where a computer is located, and in some cases, make it appear to be in a location it is not, Retail Decisions says.

The update to ReD Shield, Retail Decisions’ fraud prevention service, features detection tools that can determine whether a user is using software or a proxy server to conceal his IP address. Not surprisingly, when a consumer seeks to hide his IP address, it increases the suspiciousness of the transaction, Retail Decisions says.

Retail Decisions uses this information, along with other factors, such as the time of purchase, whether the cardholder information submitted by the shopper matches the bank’s information and the number of purchases the consumer has made recently across all of Retail Decisions’ merchant clients, to generate a decision about the veracity of the shopper.

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