Account Origination Fraud Detection Solution

Account origination fraud detection solution is a scam that sees an attacker falsify the identity of a person and use that to sign up to online accounts. They then exploit the benefits that those accounts offer, including submitting fraudulent loan applications or making unauthorized purchases. As new account fraud attacks continue to increase in volume and sophistication, businesses must be proactive about detecting them.

The key to identifying new account fraud lies in robust background checks, which can reveal information that’s not consistent with genuine user data. This includes a lack of a social media presence, unusually low ecommerce spend or erratic transaction patterns, as well as an ID that doesn’t match with other verification methods. Other red flags include the addition of a relative, changes to document details and personal information, and a sudden shift in verification preference, such as changing from text to email.

Account Origination Fraud Detection Solutions

In the most severe cases of this type of fraud, an attacker may even go as far as stealing a person’s documents and inventing their own. This is known as synthetic ID fraud, and it’s the fastest-growing form of identity fraud in the US.

Identifying these fraudulent activities is only possible with a networked approach to fraud prevention. IPQS combines the power of its global intelligence network with advanced technology to detect fake and synthetic identities, bogus user data, and other signs of malicious intent at the new account creation stage. This reduces friction for legitimate users and helps businesses to build trust by preventing new account fraud and related abuse.

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