In today’s digital era, businesses offer new account registration fraud detection sign-up bonuses and rewards to attract customers. Fraudsters, however, use those same incentives to gain entry into business networks. They leverage stolen credentials to mimic real users during the registration process, then carry out a range of downstream fraud attacks that can be difficult to detect and mitigate.
Fortunately, there are a growing number of automated tools that can spot obvious instances of account creation fraud. These analysis systems work by analyzing data – often via AI techniques – gathered from a user’s online activity, e.g. by correlating data on their previous phone numbers and email addresses with their claimed identity (using data sourced from telecoms providers), or flagging examples of potentially malicious purchase activity.
Spotting the Red Flags: Effective Account Registration Fraud Detection”
These tools also typically include some sort of biometric verification technology – such as face, fingerprint or retinal scans, for example – which can confirm that a remote user is physically present on the device they are using to access the system. This is particularly important, given that fraudsters are increasingly using legitimate ID documents – such as photos from passports or driving licences – to fake their identities during the registration process.
iProov’s solution is different from the competition because it goes beyond simple biometric verification to ensure that a person is really who they claim to be, in real time and without any need for hardware. This includes passive liveness detection that illuminates a user’s face with a sequence of colors to prove that they are indeed present in the image they are providing and not a digitally injected attack or other criminal attempt. It also uses iProov’s unique Flashmark technology to verify that the photo provided is an actual selfie and not one that has been faked. Combined with IPQS threat blocklists and user data signals, this enables organizations to deploy advanced new account fraud screening for fake accounts and account origination fraud without impacting genuine user registrations.