New Account Fraud- A new breed of scams
Banking customers around the world are conducting most of their business online more than ever. According to Capgemini, by 2022 global non-cash transactions are expected to reach $1 trillion.
As more customers move online so do cybercriminals. Criminals are always probing defences and finding new ways of committing fraud at scale, while also taking precautions to stay undetected. New Account fraud is one of those new ways. There are of course multiple frauds but New Account Fraud (NAF) is the most expensive form of identity fraud to both organisations and consumers.
In this report, you will find what NAF is and how to protect your business from fraudsters.
NAF is hard to spot. Fraudsters either use legitimate information stolen secretly from real consumers, or they stitch together synthetic identities using this and fake info. Either way, it can be difficult for traditional filters to detect using threat intelligence feeds and static data. However, placing ID documents checks and physical biometric checks could help in correctly identifying the fraudsters.
Using identity verification tools like document scanning or digital identity networks alongside risk assessment like KYC and biometrics can meld verification that the identity exists and is legitimate with an assurance that the individual applying is not a fraudster and truly owns the identity being claimed.
Shufti Pro’s approach to identifying and eliminating fraudsters during account opening or customer onboarding could easily help in catching fraudsters while keeping the real customers intact by providing frictionless onboarding.