Michael was great at online casino. He wanted to participate in one such tournament. The only problem? The game was restricted in his country. With a quick VPN switch and a GPS spoofing app, he "moved" from Texas to Michigan in seconds, played the game, and withdrew his earnings. This is location spoofing in action. Incidents like this not only hurt your business but also can cause regulatory challenges. For situations like these, it become paramount for your app to detect location spoofing.

Location Spoofing a technique where fraudsters manipulate GPS or IP data to fake their whereabouts. Cybercriminals use it to bypass security checks, impersonate trusted sources, and commit fraud.

From stealing bank details and tricking online payment systems to fake deliveries, regulatory challenges, and more, location spoofing is a growing threat. So, how to detect location spoofing before it wreaks havoc on your business? 

The first step is to understand the intricate details of location spoofing. 

What is Location Spoofing?

Location spoofing is a broad term that refers to any method used to fake a device’s location. It is usually done by altering GPS signals, changing IP addresses, or even manipulating Wi-Fi signal data.

What is GPS Spoofing?

GPS spoofing, on the other hand, is a specific type of location spoofing that focuses solely on tampering with GPS signals. It works by tricking systems into thinking that a device is located somewhere where it is actually not.

Location Spoofing vs GPS Spoofing

Location spoofing and GPS spoofing might sound identical, but they aren't the same. There are stark differences that set them apart from each other. 

How Do Fraudsters Spoof Their Location?

Fraudsters deploy several tactics to fake their location. The choice of tactic varies based on their end goal, that is, to bypass security measures, to commit fraud, or to exploit location-based services. 

Here is a detailed breakdown of the most common techniques they use.

GPS Spoofing Apps

One of the most common methods is GPS spoofing apps, which allow users to modify their real location with a few taps. These apps trick any service relying on GPS data, making it appear as though the user is in a completely different region.

For instance, scammers use GPS spoofing to access banking or stock trading platforms restricted to certain locations. A fraudster sitting in one country can manipulate their phone’s GPS to show they are in the U.S., gaining access to financial services meant only for domestic users. 

One of the giveaways? Sudden, unnatural location changes - like jumping from New York to London within seconds.

VPNs & Proxy Servers

We saw how a VPN works earlier. Rerouting traffic using VPN and proxy servers is a widespread tactic online fraudsters and scammers use. By masking the user’s actual IP address, scammers bypass regional restrictions and trick systems into treating them as trusted users. Imagine an online banking platform that flags logins from high-risk countries. It can be a variation of any such security measure. 

A fraudster can use a VPN to appear as if they are logging in from a whitelisted region, effectively bypassing the security check. While VPN detection tools exist, fraudsters often cycle through different servers, making it harder to pinpoint suspicious activity.

Wi-Fi & Cell Tower Spoofing

For even more precise manipulation, some attackers turn to Wi-Fi and cell tower spoofing. Since many security systems use network-based triangulation for location tracking, fraudsters exploit this by setting up rogue Wi-Fi hotspots or mimicking cell towers. 

This is particularly useful in ride-hailing and delivery scams. A food delivery driver, for example, may trick an app into thinking they are near a restaurant when they are actually miles away, allowing them to game the system and collect orders unfairly. 

The best way to counter this? Cross-check location data using GPS, IP, and Wi-Fi networks rather than relying on a single source.

Using Remote Desktop Software

Some fraudsters don’t even need to manipulate their location - they rely on remote desktop software like TeamViewer or AnyDesk to take control of devices that are legitimately in the desired location. 

This is particularly common in financial scams. A fraudster operating from a restricted country may remotely access a computer in the U.S. to make transactions that would otherwise be blocked. 

Because the login appears to come from a trusted device and location, the fraud goes undetected unless security teams monitor remote access attempts and flag unusual device logins.

The fight against location spoofing requires a multi-layered approach. Simply relying on GPS or IP-based tracking is no longer enough. Organizations must integrate multiple location verification methods, monitor for inconsistencies, and stay ahead of evolving fraud tactics. 

If they don’t, they risk opening the door to a new wave of location-based fraud that is becoming harder to detect.

Who Spoofs Location or GPS and Why?

Location spoofing isn’t just a trick used for fun—it’s a powerful tool for fraudsters looking to exploit systems and gain financial benefits. Different industries are targeted for different reasons—whether it’s financial fraud, taking unfair advantage of location-based offers, or bypassing restrictions.

Here’s how location spoofing plays a role in various scams.

Online Betting and Gaming Apps

Many online betting platforms restrict access based on geographic location due to gambling laws. Fraudsters use GPS spoofing and VPNs to bypass these restrictions and place bets in regions where the service isn’t allowed. Similar types of gaming fraud is seen outside betting apps.

Online Shopping & Promo Abuse

Many e-commerce platforms offer region-based discounts and exclusive promotions. Fraudsters manipulate their location to take advantage of these offers, causing businesses to lose money.

Fake GPS Fraud in Banking

Banks and financial institutions use location data as part of fraud detection. Scammers spoof their location to trick security systems and bypass account restrictions.

Location Spoofing Detection in Ride-Hailing and Food Delivery

Gig economy apps like Uber and Lyft and food delivery platforms rely on location tracking to assign jobs and calculate payments. Fraudsters use GPS spoofing to manipulate earnings.

How to Detect Location Spoofing in Online Streaming

Location spoofing in online streaming is extremely common. From teens to young adults, almost everyone uses spoofing to access content that is not streamed in their region. While this might appear to be an innocent way of bypassing content regulations, from a regulatory viewpoint, this is fraud amounting to a criminal offense. 

This bypassing causes regulatory pitfalls for streaming services while causing real-world implications for viewers who should not be watching such content. 

Location spoofing is a serious concern that no industry is immune to. It causes revenue loss and also exposes users to grave security risks. Detecting it requires a multi-layered approach, including GPS validation, IP tracking, and behavioral analysis.

The Real-World Need for Fake Location Detection

For the casual onlooker, fake location detection might appear to be a high-profile tracking stunt with unnecessary costs and few benefits. 

But, if you zoom out to 30,000 feet and take a bird’s eye view, especially through the lens of e-commerce businesses and federal agencies, fake location detection is a matter of significance. 

Financial Protection

As mentioned earlier, fraudsters often spoof locations to bypass regional restrictions, exploit promotional offers, or commit identity theft. These are the most commonly seen patterns. 

The latest example of this is the Monroe County credit union scam, where scammers have been using artificial intelligence to spoof phone numbers, deceiving individuals into revealing sensitive banking information.

Operational Integrity

Location spoofing throws a spanner into the smoothly running operations of ride-hailing and delivery services. These businesses rely on accurate location data to calculate charges and render timely services. 

The most commonly seen fraudulent activity is when drivers falsify their whereabouts to claim unearned incentives. They even mark deliveries as complete without actual service, leading to financial discrepancies and customer dissatisfaction.

Regulatory Compliance

Certain services and event content are legally restricted to specific regions. A good example is Netflix and Amazon content, which can be viewed in some regions but not in others. 

Users who are keen on viewing such content override the controls using location spoofing. It gives them unauthorized access, leading to potential legal ramifications for service providers who inadvertently serve users in prohibited areas.

So, what stops businesses from putting a permanent stop to location spoofing? Most business owners take location spoofing as a second-priority threat. They are unaware of the potential pitfalls that ignoring location spoofing can cause.

Erosion of Trust

Users expect fair play and genuine interactions. For example, in online gaming, players using location spoofing can exploit region-specific bonuses, leading to an uneven playing field and dissatisfaction among the honest user base.

Financial Losses

Marketplaces like OLX and Amazon may encounter fraudulent listings from spoofed locations, resulting in monetary losses for both the platform and its users. 

Black Friday 2024 gave a nasty surprise for Amazon, which was flooded with fake AMD 9800X3D listings. 

Compromised Data Integrity

Accurate data analytics is vital for business decisions. Location spoofing skews data, leading to misguided strategies and resource allocation.

All these points affirm the need for the timely detection of fake locations. It is paramount for safeguarding financial assets, ensuring operational efficiency, and maintaining user trust. 

Proactive measures against location spoofing not only protect businesses and consumers but also uphold the integrity of services across various industries.

How to Detect Location Spoofing?

There is not one way, but several ways to detect location spoofing. 

1. Detecting GPS Spoofing in Mobile Apps

Many apps rely on GPS to track users' locations. However, fraudsters can manipulate GPS data using spoofing apps. Here’s how to detect it:

Compare GPS Data with Other Location Signals

Cross-check GPS coordinates with Wi-Fi and cellular data. A genuine location should match signals from surrounding Wi-Fi networks and mobile towers. If the GPS location doesn’t align, it might be spoofed.

Check for Unrealistic Movements

If a user "teleports" from one city to another within seconds, it’s likely a case of GPS manipulation. Tracking historical location data can also help flag inconsistencies in real-time location and spoofed location.

Use Sensor-Based Validation

Smartphones have motion sensors like accelerometers and gyroscopes. If a device is stationary but reports changing GPS locations, it is a clear case of location spoofing.

Monitor Device Settings & Root Access:

Some Android devices allow users to enable "Mock Locations," which allows GPS data manipulation. Apps should check if this setting is enabled or if the device is rooted/jailbroken.

Detecting Location Spoofing in VPN & Proxy Users

A VPN (Virtual Private Network) allows users to hide their real IP address and appear in a different location. This is a common method fraudsters use to bypass region-based restrictions.

Techniques to Identify VPN-Based Spoofing

IP Geolocation Lookup

Cross-check IP addresses with known VPN and proxy lists. If a user's IP frequently switches between multiple countries in a short time, it's a red flag. 

Check for DNS and WebRTC Leaks

Even when using a VPN, some devices unintentionally reveal their real location through DNS requests or WebRTC. Running tests on a user’s connection can expose mismatches between their claimed and actual locations.

Device Fingerprinting

Analyze user behavior and device details (such as time zone, language settings, and hardware identifiers). If a user’s claimed country doesn’t match their device’s default settings, location spoofing is likely happening. Traditionally, companies use Device ID for fighting fraud for Android and iOS apps.

Identifying Location Spoofing in Financial Transactions

Fraudsters use location spoofing to bypass security checks in banking apps, e-wallets, and crypto exchanges. Some common scenarios include:

• Logging in from an unusual country to conduct unauthorized transactions.
• Spoofing a location to bypass geo-restricted banking services.

Techniques to Identify Location Spoofing in Banking FinTech

Behavioral Analytics

Compare real-time location with historical login locations. If a user logs in from India in the morning and from the UK an hour later, it's a clear case of location spoofing.

Transaction vs Location Mismatch

Cross-reference transaction locations with device location history. If a payment is initiated from one country but the device reports a different country, the transaction should be flagged.

Use Risk-Based Authentication

If a suspicious location is detected, trigger additional verification steps, such as two-factor authentication (2FA).

Spotting Fake Locations in Ride-Hailing & Delivery Services

Drivers in ride-hailing and delivery apps sometimes spoof their location to:

• Appear closer to surge-pricing areas and get priority bookings.
• Mark a trip as completed without actually driving.

Techniques to Detect Location Spoofing in Transport Apps

Compare GPS Data with Speed & Movement Sensors

If the reported location changes, but the accelerometer doesn’t detect any movement, the location data is likely faked.

Look for Perfectly Straight Routes

Natural driving patterns involve turns, stops, and acceleration variations. A straight-line GPS path with no deviations can indicate a simulated route.

Track Repeated Route Anomalies

If multiple drivers are reported as taking the same unrealistic route frequently, the system should flag it as potential location spoofing.

Detecting Fake Locations in E-commerce & Marketplaces

Location spoofing is often used in online marketplaces to:

• Trick buyers by pretending to be in a trusted region.
• Trick sellers to dispatch cash-on-delivery orders to risky locations where orders are denied or frauds happen frequently.
• Exploit regional discounts by changing location.

Techniques to Detect Location Fraud in E-commerce

Compare IP Address with Shipping Address

If an order is placed from a country different from the shipping address, it might be a fraudulent transaction.

Detect Multiple Accounts from the Same Device

Fraudsters often create multiple accounts, each appearing from different locations, to abuse promotional discounts.

Flag Suspicious Order Patterns

If a user frequently changes their location before checkout, they might be exploiting location-based offers.

How Bureau Detects Location Spoofing

If your Fraud Detection System is using one signal as your source of truth for location spoofing detection, you may have already lost millions of dollars! Bureau believes that companies must take a multi-faceted approach to detect location spoofing effectively. 

Bureau employs a combination of fused location intelligence from telecom, GPS, and IP. To enhance accuracy further, our system analyzes multiple sessions (10 or more) of a user to identify consistencies and spot inconsistencies.

Bureau takes pride in the depth and accuracy of signals. In Location Spoofing detection, for instance, we use frequency and triangulation to establish:

• Elevation - How high a user is from ground level (for example, which floor)
• Signal Strength - How far a user is from the intel source (for example, distance from the router)

This is why our rate of false positives is the lowest in the industry. Here’s an example. If you are seeing multiple accounts from the same location, our technology can differentiate whether it’s a corporate tech park or a syndicate of fraudsters.

To keep updating our technology to the latest standards, we use open source intelligence like OpenCelliD, Wigle, etc.

And before we forget? We do all these in the lightest fashion possible (read: light SDK, easy integration) without hurting the customer experience. 

Curious to know more? Drop us an email at sales@bureau.id or use this form to schedule a demo.

Frequently Asked Questions

How to tell if someone is faking their location?
Look for sudden jumps between far-off locations, unnatural straight-line movements, or mismatches between GPS, Wi-Fi, and IP data.

Is location spoofing illegal?
It depends on how it’s used and for what purpose. While changing your location for privacy is a legitimate use case, using it to commit fraud, cheat in games, or bypass restrictions is illegal in many places.

How is GPS spoofing detected?
It’s detected by checking multiple data points—GPS signals, Wi-Fi networks, IP addresses, and even motion sensors. The data is collated to form a big picture of the user’s location, which, if there are inconsistencies, is considered to be a case of spoofing.

What tools do fraudsters use to spoof locations?
Fraudsters usually resort to using GPS spoofing apps, VPNs, proxy servers, and fake Wi-Fi networks to manipulate location data.

Can a VPN be used for location spoofing?
Yes, a VPN can mask your real IP and make it look like you’re in another country. However, it only changes your online location, not your GPS location.

Do ride-hailing apps detect location spoofing?
Yes. Most ride-hailing and even e-commerce aggregator apps use GPS movement tracking, accelerometer data, and route verification to detect location spoofing. 

Can GPS spoofing be prevented?
Yes. Businesses can fight back using Bureau's fraud prevention technology suite - Device Intelligence, behavioral and risk. Get in touch with us to know more.

Why is location spoofing a concern for financial apps?
It helps scammers bypass security, use fake identities, and commit fraud. Banks and fintech companies lose millions every year because of it.

How do online gamers use location spoofing?
They spoof locations to access region-locked rewards, enter exclusive tournaments, or evade bans. 

How does location spoofing affect eCommerce?
Scammers use it to abuse location-based discounts, manipulate regional pricing, and create fake seller accounts, which hurts businesses and customers.

Can food delivery drivers spoof locations?
Yes, some do. They trick the system into thinking they’re near a restaurant or customer when they’re not, leading to fake completed deliveries and platform losses.