New-Account Fraud: A Threat Down Every Avenue

Foreword

This report, sponsored by BioCatch, explores the real-life risks and impacts of new-account fraud on financial institutions and consumers. This report is derived from the 2022 Identity Fraud Study: The Virtual Battleground, published by Javelin Strategy & Research in March 2022. Javelin Strategy & Research maintains complete independence in its data collection, findings, and analysis.

Overview

Identity fraud continues to have a devastating effect on U.S consumers and financial services, and it shows no signs of slowing down. In 2021, consumers lost almost $52 billion1 to traditional identity fraud and identity fraud scams, with nearly $7 billion attributed to new-account fraud. Banks and credit unions must mitigate the risk of new-account fraud by successfully striking the balance between a frictionless account-opening experience for consumers and building a robust identity-proofing solution that stops identity fraud in its tracks. Through the use of behavioral and device biometrics and account interaction risk-scoring, financial institutions can be confident that they know who is on the other end of a new-account application.