Stop onboarding fraud and identity manipulation at the point of ingestion. Implement real-time risk intelligence to block synthetic entities, reduce operational losses, and secure digital customer acquisition campaigns without introducing friction to legitimate users.
Today, businesses across all sectors are continuously transitionining to digital-first operations. This systemic shift has led to the widespread adoption of digital onboarding procedures instead of traditional face-to-face methods. While this evolution dramatically accelerates user growth, it has also resulted in a significant increase in New Account Fraud as bad actors dynamically adapt to the changing digital landscape.
Allowing streamlined, digitized access to services requires an intelligent security layer capable of identifying and blocking fraudulent users before an account is officially generated. Onboarding vulnerabilities represent a critical threat vector across market such as Financial Services, iGaming, Insurance, E-Commerce, and Public Administration.
New Account Fraud, also known as Account Opening Fraud or Onboarding Fraud, is a sophisticated form of financial crime where fraudsters leverage stolen, manipulated, or completely fabricated identities to open unauthorized accounts. While traditionally associated with bank accounts, credit cards, and loans, this threat extends across multiple digital sectors, including e-commerce loyalty programs and public administrations, where criminals hijack tax refunds and pension funds.
Because it occurs at the very first touchpoint of the customer relationship, New Account Fraud acts as the primary gateway to several critical cyberattacks:
The execution of onboarding fraud follows a systematic lifecycle that exploits vulnerabilities in digital-first identity verification processes. The attack unfolds across three distinct phases:
Data Acquisition: The fraudster harvests legitimate personal data through phishing campaigns, social engineering, or corporate data breaches. Alternatively, they engineer synthetic identities by combining real stolen data (such as a valid SSN) with fabricated components.
Account Creation: Utilizing the stolen or synthetic identity, the attacker initiates the digital onboarding process on a financial or digital service platform.
Exploitation and Monetization: Once the account is approved, the fraudster rapidly drains the available credit, executes unauthorized purchases, or secures loans. Eventually, the victim of the identity theft will discover that fraudulent activity has taken place in their name. They may be left with the bills and other long-term financial consequences, such as damage to their credit score.
Modern digital services face a critical structural challenge: development priorities frequently favor a frictionless user experience to boost customer acquisition, inadvertently leaving security gaps during the onboarding phase. Balancing a seamless user journey with robust identity checks is essential to mitigate the compounding costs of fraud losses and operational debts.
Static identity verification methods are no longer sufficient to secure the account opening procedure. Protecting digital entry points requires a holistic approach that seamlessly converges user behavioral biometrics, device fingerprints, and real-time transaction monitoring with Anti-Money Laundering (AML) instruments.
The XTN New Account Fraud Protection solution is a comprehensive solution designed to assist businesses across various industries in combating fraud related to new account openings in their digital services. By analyzing user behavior in real-time during the account onboarding process, XTN’s solution can identify and detect fraudulent activities that traditional identity verification methods may overlook. This advanced approach adds an extra layer of security, ensuring businesses can protect their customers and mitigate the risks associated with new account fraud.
The XTN New Account Fraud Protection solution covers the following main areas of analysis:
We analyze the user’s interaction with the login form. For example, we detect excessive savviness, unfamiliarity with the user’s IP address, and heavy use of copy-and-paste.
We verify the personal data entered to detect any anomalies. For example, the reuse of information already associated with another user (phone, email, address) or a device that has already been used to register other users.
We check for the presence of Indicators of Compromise (IoCs) related to previous fraudulent activity or external events (data breaches).
Consequences of New Account Fraud can impact a digital business by:
• Outstanding debts
• Customer acquisition campaigns damaged
• Compliance and reputational issues
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