Applications - New Account Fraud
AKA – Account Creation Fraud, Account Origination Fraud, True Name Fraud
Every year fraudsters and malicious users do millions of dollars of damage to Internet businesses by using stolen or fake identities. They often do this by creating accounts, submitting applications, or request quotes for online for loans, insurance, credit cards, virtual products and dozens of other goods and services that can be quickly turned into cash.
In addition to monetizing stolen identities and fake credentials, malicious users can greatly reduce customer satisfaction by behaving inappropriately or abusing other community members. This can cause serious brand damage for an Internet business. Fraudsters are able to do this by committing new account fraud.
New account fraud, sometimes referred to as application fraud, account creation fraud or account origination fraud, is when criminals attempt to use a synthetic, fake or stolen identity to fraudulently access an online service.
New Account Fraud can take place anywhere an identity is used to buy, store, request or access goods and services. According to recent research, new account fraud losses may exceed those associated with other types of ID fraud. Moreover, new account fraud is more difficult to detect. Fraudsters move quickly to exploit their opportunities and maximize what they can steal.
Kount uses several techniques and proprietary technologies to unmask fraudsters, detect malicious users and prevent new account fraud. Kount Complete™ uses patented technologies like Multi-layer Device Fingerprinting, Proxy Piercer™ geolocation, velocity checks, cross-merchant order linking, Persona™ behavioral modeling, statistical scoring and a powerful rules engine that can help detect fraud the very first time it appears. The powerful Kount platform reviews each account creation event and returns a risk assessment in an average of just 350 milliseconds
With Kount you can:
- Detect proxy IP addresses and reveal the true location of a fraudster
- Detect inconsistencies in device, location, address, email, etc. to reveal suspicious activity and anomalies
- Eliminate inconvenient security checks for good customers.
- Track velocity of information being presented to detect fraudulent activity such as multiple accounts associated with a single device.
- Detect account utilization anomalies such as credential sharing.
- Link variables such as device, email, credit card, etc. to detect fraudulent associations across our entire merchant base.
- Identify fraud rings and fraud-staging activities
- Reveal fraudulent activities such as “card testing”, synthetic identity creation and use.
- Provide comprehensive risk score from Kount’s integrated platform for a complete analysis of fraud
- Detect bad behavior associated with new accounts.
- Stop the repeated creation of accounts by malicious users.
- Customize rules to match the unique needs of an Internet business.
- Automated, real-time use of best-in-class identity verification tools.
- Easily create/add positive and negative lists using automation.
Even with all this, Kount provides the fastest most accurate responses with their all-in-one, turnkey fraud solution that is easy-to-implement and easy-to-use.
The Scenario
After digging through the garbage, a criminal gathers the victims personal information including, billing address, phone, credit card and social security numbers. Within minutes, the fraudster is online setting up accounts, applying for loans or new credit cards, which could take the victim and the merchant 30 days or more to detect.
Kount detects, exposes and prevents the fraud from occurring protecting both the victim and the merchant.