The account origination fraud of today are using new technologies to bypass the traditional methods of identity verification used by financial institutions. As a result, the majority of fraudulent accounts are opened by fraudsters using synthetic identities – fake personas constructed from piecing together bits and pieces of stolen real-world personal information.
These fake identities can be abused to open bank accounts in someone else’s name, or for online shopping or content scraping. They can also be used to take advantage of promotional items designed to entice people to sign up for a service, or to apply for credit cards and loans without paying them back.
Guarding the Gateway: Strategies to Prevent Account Origination Fraud
This type of fraud is often overlooked by companies relying on knowledge-based data to verify their customers. This is because criminals are able to pass this verification with ease by using stolen or fake documents, spoofing their internet configuration, and employing advanced image editing software. In addition, criminals are able to hide behind automated bot behavior that is hard for most automation-detection solutions to detect.
When a criminal successfully opens an account, they can then use it to commit further crimes or sell their fake ID to other criminals. The resulting damages are significant. In 2020 alone, identity fraud scams generated $43 billion in losses. Moreover, it takes an average of 151 days to detect these types of fraud attacks. Fortunately, it is possible to stop account origination fraud, or OAO, by implementing identity verification that uses real human face to verify a user’s presence. iProov’s biometric onboarding can add this security layer and help protect your business from these sophisticated attacks.