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This can also be done directly in Fastly using e.g. developer.fastly.com/reference/vcl/ Another approach to proactively flag malicious IPs is to scrape free proxies. Indeed, most DDoS leverage lot of cheap/know bad IPs. It's frequent to see these free proxies in these attacks.
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However, it's risky to block all free proxies by default since some of them may be shared residential IPs. In this case, a simple/less risky solution is to adopt a more agressive rate limiting on these IPs.