How IP Geolocation Protects Businesses
How IP Geolocation Protects Businesses
While digital transformation has been underway for some time, recent global events have accelerated the pace of change across the business landscape. From financial services to healthcare to retail, gaming, media, and entertainment — and everything in between — organizations have been forced to adapt as a result of the pandemic's suspension of many normal business operations. Their very survival has been predicated on it.
Numerous organizations relocated their workforces to remote locations on short notice, but also strengthened their digital channels to absorb anticipated increases in customer traffic and demand. As noted in a recent report, DNS traffic increased by 220 percent in the first three quarters of 2020 compared to the same period in 2019. As businesses rose to the challenge of efficiently and effectively delivering data-driven solutions, they discovered that bad actors were accompanying them. To manage security, organizations can benefit from a workhorse that is adept at identifying malicious connections: Geolocation of an IP address.
Adhering to a fine line when it comes to risk management
The proliferation of online service models has created commercial opportunities by providing customers and prospects with additional and faster ways to conduct business. However, the expansion of digital channels has created new opportunities for cyber criminals. According to Neustar's Cyber Threats & Trends Report: First Half 2020, the first half of 2020 will see 2.5 times the number of attacks as the same period in 2019. Bots and bad actors make daily attempts at everything from illicit account registration and fraudulent transactions to malicious malware.
IT departments must perform a delicate balancing act. Teams must evaluate all interactions with a digital channel, keeping an eye out for potentially malicious or bot activity. According to excerpts from a 2019 cybercrime report, bot attacks on newly created accounts increased 171 percent year over year. Bots can be used in a variety of ways, from scanning a network for vulnerabilities to impersonating legitimate customers to commit fraud.
When IT teams work to prevent fraudsters or bots from registering or authenticating on a site, they must keep legitimate customers and prospects in mind. While merchants frequently flag and decline suspicious purchases, it is estimated that up to 30% to 70% of those declined transactions are legitimate. Any security measures implemented must appear seamless and cause the least amount of friction possible; anything less may discourage clients from returning, affecting profitability.
In addition, IT teams must strike a balance between security and customer experience while operating in an environment that is becoming increasingly complex. According to a recent Harvard Business Review survey, 74% of respondents indicated that ongoing digitization efforts would significantly increase the complexity of their organization's environments over the next 18 months. Along with delivering enhanced features and functionality that clients expect, many businesses may introduce additional layers of management to ensure compliance with applicable regulations or governance in their industry.
Traffic management through data-driven intelligence
Businesses require data-driven intelligence on who is accessing their digital channels in order to manage security without impairing the customer experience. For years, advanced organizations have relied on IP geolocation, and with good reason. IP geolocation data can provide IT teams with a wealth of information about an address, ranging from its physical location — down to the city and even zip code level — to whether it is being used by a human or a bot. It can provide insight into the connected device's behavior, alerting teams to activities that deviate from normal patterns and may indicate hijacking or the possibility of fraud.
IP geolocation data can provide instant insights, even when the IP address universe is large. Version 6 of the IP address specification (IPv6) is now in use; it is roughly ten billion times larger than its IPv4 counterpart, implying an almost infinite number of address spaces for the foreseeable future. Nonetheless, modern analytics have improved technology to provide insight into 99 percent of all IPv6 addresses allocated.
Businesses can obtain critical information about a device associated with an IP address in real time as it attempts to connect. Along with location information — such as country, region, city, and postal code — proxy and organization information can be gleaned. All of these insights combine to enable IT and security teams to make informed decisions about which traffic should be allowed and which should be blocked. Moreover, this critical data is gathered without interfering with customers' journeys, ensuring a frictionless experience for legitimate users.
Using IP geolocation services to enhance business capabilities
Apart from enabling businesses to make informed decisions about how to handle visitors during the initial point of contact, IP geolocation insights can help firms improve their business-building capabilities. While security is paramount, valuable data can be used to support other critical initiatives.
IP geolocation data can assist organizations in cultivating customer loyalty and repeat interactions by providing a better understanding of the markets they are targeting and how to promote a consistent user experience. For financial services firms, it may be as straightforward as connecting users to nearby branch locations and ATMs. For retailers, this could mean directing shoppers to brick-and-mortar locations where they can take advantage of additional deals. Additionally, organizations can track the origins of new prospects and returning customers, which provides justification for targeted, localized marketing efforts or for delivering the right content at the right time, without requiring endless authentication checks.
Also, location intelligence plays a role in assisting businesses in tracking user location for compliance and response purposes. Certain industries, such as gaming, may be subject to regional regulations. Utilizing IP geolocation data enables gaming organizations to manage access by restricting access to individuals who reside in restricted areas while remaining open to those who reside in approved regions. Similarly, entities that need to control the distribution of media or content may do so by restricting access to IP addresses that appear to be outside of a permitted area.
In Conclusion
Any organization, regardless of industry, that is prepared to play must have both offensive and defensive strategies in place. IP geolocation is a single service that addresses both ends of the spectrum, enhancing the customer journey and relationship, which are critical for repeat business and referrals, while also safeguarding critical enterprise assets from fraud or exploitation. By supplying accurate data about a location's location and associated risks, IP geolocation services enable businesses to make informed decisions about security, compliance, and the overall customer experience, putting them in a competitive position.
