The digital era is filled with incentives for new customers to sign up for products and services. While these promotions are meant to drive customer loyalty, they are also attracting fraudsters who use stolen or synthetic credentials to create fake account registration fraud detection and then perpetrate varied downstream attacks. This type of fraud is known as account registration fraud, and it’s a top challenge for businesses.
Fraudsters use a mix of fake and real information when opening an account online, and they attempt to make their applications appear as genuine as possible. They do this to avoid being flagged as suspicious during the verification process, which is why they often take steps like leveraging disposable email and phone numbers or using high-risk proxies and VPNs. They also try to mimic the behavior of legitimate users in order to slip past detection, making this type of fraud challenging to stop early on.
Unmasking the Impostors: A Deep Dive into Advanced Techniques for Spotting Account Registration Fraud
To help stop this type of fraud, businesses need to implement a multi-tiered approach to verify user data during the new account registration process. This should include a risk-based authentication, which can identify suspicious patterns of activity and assess the person’s physical and device location. It should also incorporate passive liveness detection, which can determine whether an image that a user is required to provide is actually a high-resolution selfie that was not fraudulently created or stolen. By catching these signs early on, fraudsters are deterred from committing this type of fraud and the associated costs are mitigated before they have an opportunity to do significant damage.