Account Origination Fraud Detection

Account origination fraud is a significant and costly risk to financial organizations. Research by American Banker and Neustar shows that nearly two out of three organizations have experienced losses related to account origination fraud in the past 12 months, ranging from $100,000 or less to $2 million or more.

Detecting new account origination fraud detection is complex and challenging. It requires a risk engine that can collect, score and analyze data from all digital channels to spot potential relationships between users, IP addresses and devices with proven fraud behavior.

OneSpan Risk Analytics delivers real-time, comprehensive monitoring of all new accounts. Systems like this help financial institutions track dormant to warmed-up accounts; high transfers in/out that exceed what would be expected based on salary data in the customer’s application; and other patterns that could indicate fraudulent activity.

The Art of Account Origination Fraud Detection: Techniques for Staying Ahead of Fraudsters

Facial biometrics and document verification are key tools in preventing identity fraud. Using these techniques, banks can ensure that their applicants are who they say they are and avoid the high costs and disruptions of new account fraud.

New account fraud is a particularly difficult problem to prevent because it occurs when a bank has never seen the new customer before. While it is possible to verify a returning user’s identity after he or she has opened an account, it is more difficult to authenticate a new client in the first place.

To avoid these problems, many financial institutions turn to behavioral monitoring solutions that track user activity in real time during the account opening process. These behavioral insights help financial institutions identify fraudulent activities that may have gone unnoticed with traditional identity verification methods.