The Front Door to Fraud: Rethinking Digital Onboarding Risk

Digital onboarding is one of the most challenging aspects of the customer journey because it’s the moment when organizations know the least about a consumer. It’s also a point when fraudsters launch attacks of all kinds: deepfakes, synthetic identities, malicious bots, and more. Because of these, financial services organizations experience high fraud losses driven by new-account fraud and weaker credit decisioning. What’s more, there’s a loss of consumer trust when the effects of fraud spill into the customer experience. 

Identity verification still serves its purpose; however, it cannot prevent modern fraud threats on its own. Under constant attack from fraudsters, organizations need continuous assurance of a customer’s identity. This requires a layered approach that includes machine-learning-enhanced intelligence about identity, device, and behavior from the start of the application stage through the customer journey of account use. It also requires organizations to identify and treat fraud threats differently. What works to detect first-party fraud may not be as effective in detecting third-party fraud or synthetic identity fraud. Understanding the persistent threats to consumer identities and the pressures organizations face provides an opportunity to adopt a stronger approach to fraud prevention and risk management while also enhancing consumer trust and delivering a seamless experience.

FOREWORD

This report, sponsored by TransUnion, examines the risks present during digital onboarding and explores the impacts of new-account fraud on consumers and organizations alike. It emphasizes the importance of continuous identity assurance throughout the account lifecycle, starting at the front door of account onboarding. 

This report was adapted from the 2026 Identity Fraud Study: The Illusion of Progress, published by Javelin Strategy & Research in April 2026. Javelin Strategy & Research maintains complete independence in its data collection, findings, and analysis.