What Is New Account Fraud, and How Can Your Business Identify It?
The worlds of commerce and finance have embraced online models. That's great news for thousands of businesses and financial institutions. Prospective customers and applicants can sign up for accounts from all over the world. As obviously beneficial as that is, the massive amount of business done online comes with an unfortunate byproduct—it attracts fraudsters. One of the most common and insidious forms of online fraud is new account fraud or new account opening fraud. The best way to protect your business from new account opening fraud is by understanding what it is and finding the most effective tools to combat it. Here's everything you need to know.
The Threat of New Account Fraud
New account fraud is a major online threat. For instance, identity
theft crimes, including new account fraud, can cost organizations
billions of dollars each year. Essentially, new account opening fraud
involves fraudsters opening fraudulent accounts with personal
information they have stolen. With these accounts, bad actors can steal
and launder money, steal products and services, and gain sensitive
information. In addition to the significant financial damage it can
inflict upon a business and its consumers, it is a reputational disaster
as well. That's why it's well worth considering an advanced detection
solution.
The Types of New Account Fraud
There are two primary ways in which cybercriminals perpetrate new
account fraud. The first is familiar and destructive—identity theft.
Fraudsters usually gain access to personal information through data
breaches and social engineering scams like phishing. Stolen information
is also commonly bought, sold, and traded with other cybercriminals,
often via the dark web. The other type of new account fraud is just as
dangerous for your organization—the creation of synthetic identities.
Synthetic identities tend to take bits of someone's actual information
and flesh it out with information that is stolen from others,
randomized, or simply invented. There are even formulas fraudsters can
use to generate information, like social security numbers, that improve
their chances of successfully committing fraud.
How Can You Protect Your Business From New Account Fraud?
Protecting your business from new account opening fraud
combines some common-sense approaches and sophisticated tools. For
instance, employees should be trained to handle sensitive information
and to recognize social engineering threats like phishing and spoofing.
That includes best practices for email, phone use, and your business'
online presence. Sophisticated fraud rings are even able to send text
messages to employees asking for passwords and other information—texts
that are signed with their manager or CEO's name. Therefore, training
your team members to recognize the evolving threat of cybercrime is
crucial.
Tools for Combatting New Account Fraud
With the huge amount of personal and sensitive information available
online, detecting fraud rings and cybercriminals from gaining access to
that information can feel like facing a hurricane with an umbrella.
However, there is one part of the new account fraud process that those
fraudsters are required to deal with—applications. That's why the most
effective new account fraud prevention
and detection tools and technologies use behavioral analytics to
monitor applicant behavior as they interact with forms on your website.
Fraudsters attempting to sign up for new accounts are certain to behave
differently than legitimate applicants. Sophisticated behavioral
analytics technology can identify those abnormal behavior patterns and
notify you of new account fraud before it even begins.
About NeuroID
Digital
growth is about more than simply standing out. In addition to your
competition, the web is also rife with bad actors who work every day to
exploit vulnerable organizations. As a result, you need to employ
cutting-edge software for superior new account opening fraud detection.
That's where NeuroID and its suite of sophisticated cybercrime detection
tools can offer the solutions you need. Using the power of behavioral
analytics, NeuroID offers identity verification software to help you
combat fraud rings and other bad actors. The wide availability of
compromised PII has created a digital identity crisis, so NeuroID uses
pre-submit data instead to catch fraudsters early and engage your
step-up verification. With crowd-level detection and identity monitoring
from NeuroID, your organization can thwart digital threats and enjoy
secure growth.
Choose the tools to protect your business from new account fraud at https://www.neuro-id.com/
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