This filter compares the IP address of the customer’s computer (captured in real-time when the transaction is submitted) and compares its geographical location to the billing and shipping addresses. IP (Internet protocol) addresses are unique identifiers for computers that can often be mapped to a specific city or area code.
The specified action is taken whenever the IP address, shipping address, and billing address do not fall within a 100 mile radius. If you provide only one physical address (billing or shipping address), then the filter triggers when the distance between the IP address and the address that you provided is greater than 100 miles.
Treat this filter as an indicator of suspicious activity, not as a definitive result, for the following reasons:
Gift purchases are often shipped to addresses located far from the customer's geographic location.
Many Internet Service Provider customers have dynamically-generated IP addresses or are located far from their dedicated IP address.
Comparing the geographical location associated with the IP address to the submitted shipping and billing information can be an effective method for intercepting identity spoofing. Fraudsters often pretend to live in a location, but live and shop from another.
All three elements should match one realistic customer profile. For example, a customer with a billing address in New York would typically shop from a computer in New York, and request delivery to a New York address. While there may be some minor inconsistencies in the overall profile, it should generally fit together.
You should be especially wary when a customer has an international IP address but uses U.S. billing and shipping information.