Account Registration Fraud Detection

account registration fraud detection

Account registration fraud detection is the process of identifying illegitimate accounts before they can be used for fraudulent purposes. These accounts can include Social Security numbers that don’t match the identity on file with the bank, or a social profile that has odd aspects that aren’t present in the applicant’s other data.

Account registration fraud detection  occurs during the registration and account acquisition process when fraudsters attempt to create fake accounts with completely made-up details ranging from stolen or synthetic identities (obtained through data leaks, phishing scams or bought on dark web marketplaces) to new accounts created using a mix of real and fake information. Detecting these attempts early can help prevent major damage to your digital products and services.

Account Registration Fraud Detection: Best Practices and Strategies for Online Businesses

Modern criminals use sophisticated bots to create seemingly real accounts without passing traditional security checks such as CAPTCHA. This allows them to bypass a business’s account verification process, create fake accounts, and then later use the bogus accounts for abuse.

Behavioral biometrics and analysis to identify and prevent new account fraud

The XTN New Account Fraud Protection solution uses behavioral biometrics and analysis to protect your digital products from onboarding fraud. By analyzing user behavior in real time during the account registration process, it can identify and stop fake IDs that may have gone unnoticed by traditional identity verification methods.

A recent attack on a global e-commerce retailer, for instance, used thousands of fake accounts to launder money. The attack script included API calls to disposable email address services, and was executed by a massive botnet. This kind of attack leaves a data trail that can be analyzed by AI and used to detect account creation fraud.

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