How to Stop Account Creation Fraud
When you sign up for an account with a company or service, you are often asked to verify your id. This is to safeguard your data and protect you from fraudsters, preventing malicious activity such as fake accounts that can cause financial or reputational damage. Fraudsters can use these fake profiles to spam customers, steal their personal info and make fraudulent purchases. This can wreak havoc for businesses and can cause customer experience issues.
Stopping new detect synthetic identity fraud is a complex task, as attackers are constantly coming up with ways to bypass anti-fraud systems. But there are ways to identify the most common patterns of this kind of attack, and to take steps to prevent it from happening.
Cracking the Code: How to Detect Synthetic Identity Fraud Before It Strikes
There are three types of new account fraud. The first is when fraudsters use invented information to open an account. For example, when they need to provide proof of identity but don’t have the document in hand, they may create a false ID or use a real one with a different name and address. This is known as synthetic fraud and is a growing type of account opening fraud.
Another way to identify new account fraud is by assessing device, network, and transaction attributes to single out abnormal behavior. A strong continuous monitoring strategy that can detect these abnormalities is crucial for protecting businesses from fraudsters, enabling them to make decisions in real-time. It’s also important to partner with a full-service fraud and chargeback prevention provider that can help you reduce the costs of new account fraud.