New account fraud occurs when fraudsters use stolen or fabricated/synthetic identities to open new accounts, like credit cards, bank accounts, or loans. Criminals exploit these accounts in many ways; they might take the proceeds of loans or run up the balance of a credit card without any intention of paying, or use new bank accounts for money laundering activities.
Use case/ examples for new account fraud
Application screening: Detecting fraudulent credit card and loan applications using stolen or synthetic identities in real-time during the approval process.
Identity verification: Validating an applicant's identity through the use of document verification, biometric matching, and liveness detection to prevent fraudulent account creation.
Risk assessment: Analyzing application data against fraud patterns and known compromised information to flag and block the creation of suspicious new accounts.
