What is New Account Fraud?
New account fraud is generally when a cybercriminal opens new accounts using the stolen personal information to purchase products or services. Another way to describe new account fraud is financial identity theft.
Cybercriminals never tire of stealing personal identities and using them to commit online and mobile fraud. Whether fraudsters use someone’s true identity or bits and pieces of real data to create a synthetic identity, the goal is always to commit a crime—usually by creating a new online account.
How iovation Helps Detect & Stop New Account Fraud
Fraud at account registration is a problem across industries and creates significant losses for financial and online lending institutions when it comes to loan default, bonus abuse in gambling and spam or other unwelcome behavior in social communities.
Although fraud schemes may vary across industries, what doesn’t change is that each one comes through an Internet-enabled device. The ability to identify, recognize and understand with great certainty the risk that device, and by extension person, poses to your business is crucial to stopping fraud.
We Know About The Behavior Of 5 Billion Devices
A device may be new to your site, but it’s very likely already part of our extensive knowledge base of 5 billion devices. The more accurate data you know about a device upfront, the easier it is to assess risk, trustworthiness and stop fraud before it happens. Device intelligence is often the first line of defense against online fraud and it can be a powerful tool to identify high-risk patterns of behavior at account registration.
Our multi-layered approach to stopping fraudsters at account creation includes:
- Detect suspicious devices (web and mobile)
- Identify high-risk location and networks
- Use real-time Iink analysis to connect seemingly unrelated accounts and devices with fraud
- Detect location masking to reveal a fraudster’s true location
- Uncover evasion detection strategies
- Track velocities to detect risky behavior
- Gain insight from client-shared fraud and our device reputation service
Shared Fraud Intelligence To Stop New Account Fraud
At iovation we have over 4,000 participating professionals who share fraud intelligence on a daily basis. They flag accounts for more than 45 specific types of fraud such as identity theft, account takeovers, online solicitations, phishing, gold farming and more. This precise data arms our clients with the detailed intelligence needed to make real-time decisions on risk.
Watch the video below to see how iovation multifactor authentication and fraud prevention solutions help prevent new account fraud.