Multi-Layered Fraud Defense: Strategies for Evolving Threats

Fraudsters’ tactics are evolving. They now have access to increasingly advanced and sophisticated technologies—such as automated bots, tools that generate synthetic identities, and AI-powered systems capable of producing convincing deepfakes—that allow them to carry out more complex attacks. Identity-based threats like synthetic identity fraud, account takeover (ATO), and new-account fraud (NAF) continue to grow—not because of an absence of defenses but because existing protections often fail at critical points. 

Although many organizations have taken steps to improve fraud controls, digital-first environments introduce new vulnerabilities. Static identity checks, inconsistent authentication, fragmented risk detection, and outdated fraud prevention measures create vulnerabilities attackers can exploit. Addressing these gaps requires more than adding new technology. It requires a multi-layered approach that brings together identity intelligence, behavioral risk signals, and adaptive identity solutions to protect consumers across the entire account lifecycle, from onboarding to ongoing use.

Foreword

This report, sponsored by TransUnion, explores how identity fraud continues to evolve across new and existing accounts, exposing weaknesses in traditional identity verification and authentication processes. This report highlights why many businesses struggle to stop fraud in real time and emphasizes the importance of layered defenses that combine robust identity verification, behavioral analytics, device intelligence, and dynamic authentication across the entire customer lifecycle. This report was adapted from the 2025 Identity Fraud Study: Breaking Barriers to Innovation, published by Javelin Strategy & Research in March 2025. Javelin Strategy & Research maintains complete independence in its data collection, findings, and analysis.