How Cybercriminals Exploit IP Geolocation

Have you ever wondered how some websites or apps know where you're from? It's because of IP geolocation. Since many businesses use it to bring you targeted local content, it feels invasive sometimes. But it can also flag suspicious logins and fraudulent activity, making it essential in cybersecurity.

Yet for as long as technology advances, so do cyberthreats. Malicious individuals use IP addresses to hack into accounts and extract sensitive information. Unfortunately, businesses aren't the only ones affected by these attempts. Even regular users may find themselves in hot water, too.

Keep reading to better understand how cybercriminals exploit IP geolocation. Hopefully, you'll find more effective ways to protect yourself digitally.

Bypassing Regional Restrictions

Many cybercriminals use the trick of faking their location. VPNs, proxies, or other specialized tools help them do this. Hackers can spoof IP addresses, making others think they're operating in another country. When this technique is abused, they can appear in a place with weaker cybercrime laws.

Hiding their real, physical location allows cybercriminals to avoid regional bans. For instance, if a particular country has been flagged for multiple fraud cases, websites might block traffic from there. But hackers can slip through unnoticed if they pretend to be somewhere safer.

Law enforcement finds it challenging to monitor these occurrences. Tracking down perpetrators in countries without comprehensive cybercrime investigations is a hurdle. Fortunately, new tools, such as the OSINT framework, make the task less stressful. Consolidated resources can help cybersecurity teams gather enough data for their investigations.

Geolocation-Based Account Takeovers and Fraud

Several websites use location-based behavior to detect fraud and malicious activities. For example, if you typically log in from Sydney but suddenly access your account in Seattle, the website marks that as a red flag. It's a helpful security measure for the most part, but cybercriminals exploit IP geolocation to bypass that.

Experienced hackers can use stolen geolocation data or IP masking to make it look like they're logging in from your usual area. This allows them to circumvent security checks and take over accounts without triggering alerts. Fraud is a common issue in e-commerce and banking, where location is often one of the few security measures in place.

Other growing cyberthreats are SIM-swapping attacks. Hackers use a fake geographic location to convince mobile carriers that they're the real account owners. When they hijack the SIM, they'll have access to OTPs and can break into accounts with two-factor authentication. But with better cybersecurity techniques, identity theft based on IP geolocation won't be as frequent.

Conducting Targeted Phishing

Cybercriminals don't access networks just for the sake of it. They want their victims to trust them. And what better way to build trust online than by giving people personalized content that matches their IP address. Using IP geolocation, criminals send fake emails or website links that look believable, increasing the chances of someone taking the bait.

A well-known tactic is the fake bank alert. Hackers send these notifications, often via email or text, claiming to be from the local bank. When the message's details match the victim's time zone, use the same language, or mention a nearby city, it's more likely to put their guard down.

Ad Fraud and Click Manipulation

Digital advertising relies heavily on location. Advertisers often pay extra to push their ads to specific regions or wealthier countries. Cybercriminals exploit IP geolocation to make it look like ad traffic is coming from those valuable areas.

This tactic is known as geo-fraud. Hackers set up bots that can mimic users in places like Singapore, the UK, or the US. These bots use fake clicks to flood ads, which seems harmless to most people. But to advertisers, that's a ton of lost money and useless campaign data.

Some fraudsters might also trick users into clicking on shady offers or downloading malware based on their geographical location. This is a devious way to boost profits and avoid detection. Sadly, ad fraud is the biggest threat to the digital ad industry, costing billions every year.

Disrupting Cybersecurity Systems

Cybersecurity tools rely on IP geolocation to identify threats. The system flags suspected fraudulent activities, such as requests from an unusual country. Additionally, if a specific IP range is connected to known attacks, that gets blocked, too. That doesn't stop cybercriminals; they have methods to circumvent that.

What do they do? Hackers rotate through different IP addresses from various countries to confuse detection systems. This method spreads out their activity, preventing predictable patterns. The worst part is that it could overload security systems with false positives.

Location manipulation also messes up threat attribution. If hackers exploit IP geolocation to strike from various countries, who's truly behind the attacks? Some are even state-sponsored and use this tactic to frame other nations, causing political tensions.

Selling Geolocation Data on the Dark Web

There are worst-case scenarios beyond having hacked accounts. Many cybercriminals hack individuals or companies to extract, bundle, and sell their private data. This information is highly valuable on the dark web as scammers can use it to launch targeted ads.

Here's an example: a fraudster could buy a dataset of users from a particular city and then send them fake emails about local events or services. This is a personalized style of phishing and is, sadly, quite effective.

Because more apps and websites are collecting user IPs lately, the dark web trade will be full of location data. More private information will become available if individuals and companies don't safeguard personal data appropriately.