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What Is High-Risk Source Of Application? (Explained!)

Jamey Muller
Updated: July 6, 2022
4 min read

Credit card and loans rejections are always hard to swallow, particularly for flimsy reasons like a “high-risk source of application.”

What is this ground for denial, and what can you do to prevent this in the future?

Here’s What High-Risk Source of Application Means:

A high-risk source of application means you applied using an unsecured public connection, like a coffee shop or the airport, which are familiar sources of fraudulent credit applications. Another potential trigger is when you apply overseas, and your IP address points to a high-risk area.

When your application gets denied due to a high-risk source of application, this has something to do with where your request originated from.

To guard their networks against malware, many financial institutions invest in controlling access to applications that are considered high-risk.

They have systems in place to restrict traffic from such transactions. When an application gets flagged due to a suspicious IP address, it will be routinely discarded.

Using free public Wi-Fi at hotels, shopping malls, airports, and coffee shops is usually the main reason for rejection. 

These places are common locations of fraudulent credit applications, so financial institutions are understandably wary of applications coming from them.

When you apply using a flagged IP address, the bank’s system will automatically reject your request without processing it.

Applications with IP addresses indicating high-risk areas will also be denied. Some certain countries and localities exhibit higher rates of fraud than others.

When you are overseas, and there are already multiple flags of scams in that location, any application you will send will be marked high-risk.

You can easily search if your country is under strict monitoring for fraudulent activities.

Another probable cause of application denial is the accidental use of a proxy server.

Proxy servers are commonly utilized to hide someone's actual IP address. Many fraudsters use them to remain anonymous and undetected.

If you unknowingly applied via a proxy server that has already been flagged and blocked by bank institutions, your application will not automatically be rejected. 

Sometimes, using the physical address associated with a person who had previous issues with creditors will also result in denial of application.

This may be a relative who used the same address in their past transactions and left a bad reputation with banks.

If you are unsure why the bank rejects your application, you should call and ask for a reason. This way, you know what to watch for the next time you try again.


What Can You Do Against a High-Risk Source of Application Denial?

Whether credit card or loan, getting approval for applications is not easy. Banks have specific criteria that you need to satisfy before getting considered for approval.

Since granting credit is risky, banks will need to verify applications thoroughly and reject applications that do not cater to their eligibility criteria.

High-risk sources of application are usually denied due to unverifiable information. 

This may be due to high-risk IP addresses used, client devices associated with fraud, or failure in identity verification.

In recent years, many financial institutions in the United States have compiled IP addresses used in applications for numerous loans and assistance.

Systems will automatically flag applications using these IP addresses. Calling your bank to inquire if this is the reason for your application denial should clear things up for you.

There are several ways to avoid a high-risk source of application denial. 


You should avoid public free Wi-Fi connections and only use a secure network at home or work.

This may be a problem for people who travel for business in multiple states. It cannot be helped that their IP address changes as they connect to other Wi-Fi outside the regular office work connection.

Nevertheless, transactions involving applications for credit, hotels, or coffee shops should be avoided.

Most businesses often require employees to use a VPN or virtual private network for company-related work rather than Wi-Fi in public venues.

Nowadays, you can also get your hands on portable Wi-Fi routers that you can use when traveling. However, the best option for you during business trips is mobile data.

Most security experts recommend using mobile data instead of Wi-Fi when you are out and about.

You should use mobile data to access sensitive information when you do not have a secure network.

Mobile data connections are encrypted, so there is an extra level of security added against outside threats. 

While data encryption is also possible with secured Wi-Fi, it is still less reliable than a cellular signal.


Fraud.net: How Can IP Address Verification Help Prevent Fraud?
Kaspersky: Pros and cons of external IPs
MUO: WiFi vs. Mobile Data: Which Is More Secure?

Written by
Jamey Muller
I'm the head-writer @ Knowledge Eager (or, in plain English, I'm the guy writing the majority of the content here). Addicted to the stock market, football, sushi and tacos.
Have any questions? Write us a message.
Jamey Muller
I'm the head-writer @ Knowledge Eager (or, in plain English, I'm the guy writing the majority of the content here). Addicted to the stock market, football, sushi and tacos.