Account Sign Up Fraud Detection

Account sign up fraud detection detection is a complex task. It is one that requires a multi-layered approach combining rules-based detection with machine learning to detect not only fake accounts, but more fraud overall.

The best way to detect account creation fraud is by spotting it at its earliest stage. This is because first-party fraudsters will behave like a normal customer to avoid suspicion. They can take weeks or months to build up a credit profile and then apply for loans, lines of credit and credit cards.

They will even make regular payments to establish a good credit profile before committing any actual fraud. It’s difficult to spot this type of behavior early on, because they are so new and are acting as if they’ve never committed any kind of fraud before.

Account Sign-Up Fraud Detection: Best Practices and Strategies for Online Businesses

Fraudsters also use a plethora of techniques to hide their fraud activities, so it’s crucial to monitor your customer’s behavior in real-time for any indications that their accounts may have been compromised. This includes observing their spending patterns and paying close attention to any changes to their phone numbers or email addresses that are associated with the account.

If you’re worried about account takeover fraud, consider implementing device fingerprinting to match the user’s phone number or email address with their device IDs. This will allow you to identify any suspicious activity related to the device, including device spoofing and emulators. This will help you stop any fraudulent account takeover attacks before they can take over a legitimate account.