How to recognize legitimate proxy use and reduce false positives during order review

As a merchant, you’ll frequently see cases where multiple orders with different billing addresses and payment methods are placed from the same IP address, and it’s not clear whether or not this indicates fraud. Such activity could be a sign of fraud, with a fraudster testing multiple compromised credit cards. It could also be a sign that a fraudster is using a proxy to obscure his identity. There are times though when such activity is expected and flagging such transactions as fraudulent would mean denying good orders and frustrating customers.