New-Account Fraud: Old Problem, New Challenges

New-account fraud isn’t new, but the tactics behind it are evolving quickly. As identity verification systems improve, fraudsters are finding new ways to get around them. Many fraudsters are now using bots, AI-generated documents, deepfake video or voice recordings, and synthetic identities to slip through onboarding processes. These tactics often target digital application channels, where speed and convenience are often prioritized over fraud controls, creating gaps that fraudsters quickly exploit. New-account fraud can have devastating consequences for consumers and banks. While consumers deal with their credit and financial status being affected, banks risk losing customers. In fact, nearly 40% of those who experienced new-account fraud closed the accounts where the fraud occurred. 

This report examines how new-account fraud is evolving and becoming harder to detect. It also explores how AI-powered solutions working in the background can detect the subtle signals of new-account fraud without sacrificing customer acquisition.

Key questions discussed in this Fraud Management report: 

• How are fraudsters bypassing onboarding controls?
• What is preventing faster detection of new-account fraud?
• What early signals can financial institutions use to detect fraud before a new account is approved? 

Companies Mentioned: 

Apple Pay, Feedzai, LexisNexis Risk Solutions, NICE Actimize, Sardine, TransUnion, Truist