Decoding 2023's Top Banking Threats - Part 2 - XTN Cognitive Security

Decoding 2023’s Top Banking Threats – Part 2

Get to Know the Risks of New Account Fraud, Money Mule and Financial Malware.
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As we delve into the ongoing challenges faced by financial institutions, this second part narrows its focus to New Account Fraud, Money Mule activities, and Financial Malware. Building on our earlier discussion, join us in navigating the complexities of modern financial threats and exploring innovative solutions to fortify banks against these evolving risks.


New Account Fraud, a form of identity theft, involves fraudsters using stolen or fake identities to open accounts, such as bank accounts or credit cards, in someone else’s name. This deceptive practice aims to gain credit, make purchases, and may lead to money mule activities, causing financial harm to victims.

Main Risks for Banks

If a bank falls victim to New Account Fraud, it faces significant risks, including the burden of outstanding debts, damage to customer acquisition campaigns, and potential compliance and reputational issues.
Banks need to verify the onboarding phase of their service to detect any creation of fake accounts or multiple accounts associated with the same individual.

Fraud-Free Onboarding with XTN

The XTN New Account Fraud Protection solution analyzes user behavior in real-time during the account onboarding process, identifying and detecting fraudulent activities that traditional identity verification methods may overlook. This advanced approach adds an extra layer of security, ensuring that businesses can protect their customers and mitigate the risks associated with New Account Fraud.


Money Mule fraud involves naive or unwitting individuals, known as “money mules,” recruited by scammers to transfer illicit money through their bank accounts. Mules act as intermediaries between the criminals and the financial system, enabling them to conceal the flow of dirty money.

Main Risks for Banks

For banks, it is crucial to identify instances where the operations of a current account resemble those of a mule account. Money mule schemes are frequently associated with anti-money laundering systems, amplifying the bank’s compliance risks. Consequently, the bank’s reputation may suffer significant harm, coupled with substantial operational costs incurred in the ongoing effort to detect and address money mule activities.

Catch Money Mules at any stage of their life cycle!

The XTN Money Mule Hunting solution provides complete protection against mule activities. Our solution continuously monitors a user’s behavior during a financial account opening process or within an existing account, ensuring the highest level of security and protection. This proactive approach enables early detection and prevention of mule activities, reducing the risk of extra operational costs and reputational damage for our clients.


Financial malware is a dangerous type of malware that is designed to steal financial information and money from victim’s accounts. When it comes to mobile fraud, malware targets smartphones and tablets to access private data through a web or mobile app.

Main Risks for Banks

For banks, it is essential to detect the presence of financial malware both within the devices used to access the service and when the malware is actively operating to carry out fraud. The use of financial malware poses three significant risks to banks: the potential for sensitive information loss, the risk of reputation damage, and the opening of doors to fraudulent activities.

XTN’s Real-time Malware Defense

The XTN Cognitive Security Platform® specializes in real-time malware detection. Our Artificial Intelligence is capable of identifying and monitoring malware running in real-time by evaluating the context in which mobile or web apps are executed and generating a corresponding risk score.

In navigating the intricacies of New Account Fraud, Money Mule activities, and Financial Malware, our imperative is clear: fortifying banks against evolving digital threats. XTN’s proactive solutions, from Fraud-Free Onboarding to Money Mule Hunting, exemplify innovation in tackling these challenges. With Financial Malware on the horizon, XTN’s Real-time Malware Defense, driven by advanced AI, emerges as the pinnacle of cybersecurity, safeguarding financial institutions from potential risks and ensuring a resilient defense in the digital realm.

Contact us now to revolutionize your approach to banking security.

If you missed it, also read Part 1 of the article.

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