New Account Fraud Risk – How to Avoid It

account signup fraud risk

When customers start their journey with an organization, the first place they go to build trust is the account signup process. If this process is done well, it can lead to a strong, long-term relationship with the customer, and brand loyalty. If it is not, it can disrupt that relationship and cost the business money.

New Account Fraud Risk: How to Avoid It

Getting it account signup fraud risk at the account signup process is critical for building trust and avoiding fraud. But that is not always easy. In this age of frictionless digital experiences, there’s a growing threat that new account fraudsters and organized cybercrime rings will create fake accounts on your platform to steal identities and money from your customers.

The good news is that you can protect your customer data against this threat by deploying a variety of onboarding security measures to mitigate the risk of fraudulent signups and preventing them from re-occurring in the future. Some organizations will deploy SMS one-time passwords, while others may require more robust authentication methods that include biometrics.

Account Signup Fraud: Understanding the Risk and How to Mitigate It

What’s more, account signup fraud is a fast-evolving threat that’s increasingly difficult to detect, requiring an approach that can keep up with a rapidly evolving environment.

Account Signup Fraud: Identifying Its Roots

The vast majority of account signup fraud is accomplished by bots, which are automated scripts that can create new accounts quickly and at scale. They’re ideal for attacks such as phishing and content scraping, but they can also be used for more targeted fraud operations that don’t require huge volumes of signups.