As more businesses move to digital operations, fraudsters have adapted and created new methods of committing fraud at account opening. This is a dangerously costly type of fraud that can be difficult to detect at this early stage of the onboarding process.

Detect fraudulent account origination bad actors using stolen or fabricated information to create an account. Often, these accounts are then used to commit further crimes or exploit other accounts. This form of fraud is especially dangerous because it enables criminals to access sensitive financial data, including bank statements and other account details.

The good news is that there are many risk signals that can indicate a new account may be fraudulent. These can include inconsistencies in the applicant’s name or contact information, changes to payment instructions, or suspicious activity such as large deposits or withdrawals at a bank.

How to Integrate a Fraud Detector API into Your System

Identifying these red flags can help merchants detect fraudulent account origination and protect their customers from identity theft, money laundering, or other forms of fraud. This is why it’s important for fraud teams to have the right technology in place that can help them assess and mitigate risk at this crucial stage of the customer journey.

When it comes to detecting fraudulent account origination, a solution that combines device fingerprinting, IP reputation scoring, location spoofing detection, emulator and device switching detection, as well as behavioral biometrics can be a game-changer. Ensure that the technology you choose can scale and handle peak transaction volumes while still delivering accurate results during these busy times.