Here is a brief explanation:
"Check if the IP address matches the email address and physical billing address of the customer. The IP address identifies the location of the server where the order was placed. Numerical IP addresses can be checked through programs such as WsPing32. The IP address database is constantly being updated, so it is sometimes incomplete and inaccurate. Matches may not occur if the card holder is traveling, or using a business card from a company branch located in a different city or country. The merchant should be concerned if a server address is located in one country, and the card holder's address is in another country. Check if the billing address, for example,
[email protected], matches the IP address from the block of IP numbers owned by AOL. If the fraudster is using an AOL address, the merchant can call the fraud department at AOL directly at 1-800-265-8003
There is a high correlation between IP addresses labeled as spam sources and credit card fraud.
The web site http://www.all-nettools.com/ can be used to check IP addresses. SmartWhois finds information about an IP address or hostname, including country, state or province, city, name of the network provider, administrator, etc. Traceroute determines the path between your website and the person placing the order. It matches each machine along the path to a destination host and displays the corresponding name and IP address for that hop."
It's not so much of a way to track someone down, as it is to flag an order as suspicious before shipping it.