VPN Detection
VPN detection is the practice of identifying whether a user is accessing a service through a virtual private network. In the context of jurisdictional geofencing, this is used to prevent users from bypassing location-based restrictions.
Platforms use various techniques, such as checking IP addresses against known VPN exit node databases or analyzing connection latency, to detect if a user is masking their true location. While VPNs are legitimate tools for privacy, they are frequently used to circumvent compliance measures.
Detecting them allows platforms to enforce their geofencing policies more effectively. However, this is an ongoing battle, as VPN providers constantly update their infrastructure to evade detection.
Platforms must balance the need for enforcement with the risk of false positives, where legitimate users are blocked. VPN detection is a standard feature in the security stacks of most major financial service providers.