New Account Fraud Prevention Solutions

New account fraud prevention solutions are a big problem, and it can be hard to detect and prevent. This type of fraud occurs when criminals use stolen data to create a new digital account and then exploit it for illicit gains. The attackers often create a synthetic identity, using real credentials that have been stolen along with fake details to bypass security checks. The attackers then use the new account to commit various crimes, such as fraudulent loan applications or credit card purchases.

The attack can take place in any industry, from online retail to financial services. In 2020 alone, identity fraud victims lost $43bn through this type of scam. For businesses, this can lead to a loss of revenue and reputational damage. For consumers, it can leave them with a damaged credit score from loans taken out in their name and other negative effects.

New Account Fraud Prevention Solutions: Tools and Strategies for Protection

While there is no single solution to this type of attack, companies can combine several different detection methods to ensure that their users are genuine. For example, a combination of PII checkers, biometric verification (including facial recognition), device fingerprinting and AML instruments can help to stop fraudsters in their tracks.

Behavioral monitoring is also important, particularly during the first 30 days of an account opening. This can help to identify abnormal account activity, such as a high number of transfers in/out compared to salary data. Finally, automated public Turing tests can help to reduce bot attacks and other malicious behavior that threaten the integrity of a site or application. iProov’s technology can add national-grade verification to the onboarding process, helping to combat new account fraud.

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