The Economics of Fraud:
Why Attackers Pay $15/GB for Residential Proxies

Cybersecurity isn't just a technical battle; it's an economic war. Attackers operate businesses with profit and loss statements, overhead costs, and ROI targets.

To defeat them, you don't necessarily need an unhackable wall. You just need to make the attack unprofitable.

The Cost of Goods Sold (COGS) for Fraud

Imagine an attacker wanting to scrape your pricing data or brute-force user accounts. They need infrastructure.

• Datacenter Proxies: Cheap. Can be bought for pennies.
• Residential Proxies: Expensive. Providers charge $10-$15 per GB of traffic.

Why do they pay the premium? Because Datacenter proxies are easy to block. If you block AWS and DigitalOcean, the attacker sees a 100% failure rate. Their "business" halts.

So they switch to Residential Proxies. These legitimate APIs bypass WAFs. But now, every gigabyte of data they steal costs them $15.

Breaking the ROI

If an attacker makes $50 profit from a successful account takeover, they can afford to spend $2 on proxies. But if you can identify and block those residential IPs effectively, their success rate drops.

If they have to try 10,000 times to get 1 success, and each try costs bandwidth, their margins collapse. Eventually, they move on to a softer, cheaper target.

The IPASIS Advantage

IPASIS specializes in detecting those expensive Residential Proxies. By flagging them in real-time, you force the attacker to burn through their expensive bandwidth with zero results. You are directly attacking their balance sheet.