New Account Fraud Is a Growing Problem
New account fraud is a concern for financial institutions as they seek to accelerate business in digital channels. Cybercriminals are using multiple techniques to commit new account fraud, including taking over existing identities or creating synthetic identities. In one case, a large financial institution uncovered 70% of new account fraud cases were coming from existing “trusted” customers. This growing problem is expected to cost $3.1 billion in losses to U.S. financial institutions alone in 2020.
When New Customers Are Not
With every data breach or phishing attack, cybercriminals gain access to more data, including Social Security numbers, emails, addresses, phone numbers, and device and network attributes, to commit new account fraud. From applying for credit to opening mule accounts, 85% of financial institutions report experiencing fraud in the account opening process.
How can you trust customers looking to open a new account, especially one you have never seen before?
What BioCatch Brings to New Account Fraud Prevention
BioCatch Account Opening Protection measures more than 2,000 unique risk indicators to distinguish between good users and bad actors. The BioCatch platform analyzes user behavior associated with the new account opening process to identify fraud including
- Application fluency: How familiar is the user with the account application process?
- Low data familiarity: How familiar is the user with personal data?
- Expert user: Does the user display advanced computer skills compared to the general population?
- Age analysis: Does the user demonstrate behavioral patterns common within their stated age group?
How Behavioral Biometrics Can Help You
What is the top priority to improve account opening and grow your digital business? See how BioCatch can help you achieve the results you need.
Reduce Fraud Risk
BioCatch helped a large bank in Asia detect hundreds of fraudulent account openings in the first four weeks of deployment, with fraud savings estimated at USD $540K.
BioCatch helped a large digital bank undergoing a massive attack to detect 70% more new account fraud without impacting good customers in the process.
Win More Customers
BioCatch helped a Top 5 card issuer reduce false declines and gain an additional USD $1M in otherwise lost annual revenue from genuine customers who had abandoned the online application.