New Account Fraud
Overview
New account fraud occurs when criminals use stolen or synthetic identities to open financial accounts for fraudulent purposes. It is often a precursor to money laundering, mule activity, or credit abuse. With digital onboarding, fraudsters exploit weaknesses in KYC processes to create accounts that appear legitimate.Financial institutions combat new account fraud with identity verification, device fingerprinting, behavioral biometrics, and fraud scoring. Regulators expect robust controls to prevent fraudulent onboarding, as it exposes institutions to compliance breaches and reputational harm. Preventing new account fraud is critical for banks, fintechs, and payment providers as they expand digital channels.
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Explore tools that help you onboard, monitor, and verify with confidence
Transaction Monitoring
Monitor transactions in real-time and analyse past behaviour to identify suspicious activities and ensure regulatory compliance across the user journey.
Biometric Verification
Authenticate users with facial, fingerprint, and liveness biometrics powered by AI to prevent identity spoofing and fraud.
Database Verification
Instantly verify user information by connecting to trusted databases across jurisdictions for accurate, compliant, and faster onboarding.
FAQ
What is new account fraud?
Fraud committed by opening accounts with stolen or synthetic identities.
Why is it a major risk?
It facilitates laundering, mule activity, and credit abuse.
Who combats it?
Banks, fintechs, and regulators with strong KYC systems.
How is it detected?
Using fraud scoring, device checks, and behavioral biometrics.