Near-Field Communication

Near-Field Communication, also known as NFC, is the set of communication protocols that allow two electronic devices to share information with one another based on their proximity to each other. NFC devices are used in contactless payment systems, allowing mobile phones to act as or supplement a credit or debit card in a transaction.

Network Effect

Network Effect, is a phenomenon in which a good or service gains additional value as more consumers use it. Technically, the term refers to the effect that one individual user of a product or service has on the value of that product or service to other people. The value of a product or service increases as more people use the product.

Neural Network

A neural network is a progression of algorithms that attempt to copy the manner in which the human cerebrum works in order to draw connections between different pieces of information. Neural systems can adapt to the evolution of inputs; in this way the system produces the most ideal outcome even when dealing with not-before-seen information.

New Account Fraud

What is New Account Fraud?

New account fraud occurs when fraudsters use stolen or synthetic identities to open new accounts with financial institutions, online retailers, or other businesses for illicit purposes. This type of fraud can result in financial losses, reputational damage, and regulatory penalties for organizations. New account fraud is on the rise, with a staggering 1.5 million attempts reported in recent years.

new account fraud

Common Types and Red Flags

There are 3 common ways fraudsters commit this fraud:

  1. Synthetic Identity Theft: Fraudsters create new identities by combining real and fake information to establish credit or open accounts. Red flags include inconsistencies in personal details and limited credit history.
  2. Account Takeover: Criminals gain unauthorized access to existing accounts or create new ones using stolen personal information. Red flags include sudden changes in account activity, unfamiliar devices accessing accounts, and multiple failed login attempts.
  3. Application Fraud: Fraudsters submit falsified information on applications to open new accounts. Red flags include inconsistencies in application details, unusually high-value transactions, and multiple account openings within a short period.

Solutions for New Account Fraud

To combat this fraud effectively, businesses can implement various strategies such as identity verification checks, biometric authentication, device fingerprinting, behavior analysis, and monitoring for suspicious activities. Educating employees and customers about fraud prevention measures is also crucial in mitigating risks associated with this fraud. Most importantly, businesses can partner with a fraud or security firm with AI and machine learning tools uniquely suited for mitigating account fraud risk.

How Fraud.net Helps Prevent Account Fraud

Fraud.net offers specialized solutions to combat account fraud through advanced technologies and tools designed to detect and prevent fraudulent activities. By leveraging AI-driven fraud prevention mechanisms, Fraud.net can identify suspicious behaviors, anomalies in account creation patterns, and potential risks.

For instance, Fraud.net utilizes social media lookups, IP checks, password request monitoring, and other sophisticated checks to flag suspicious activities. By assigning fraud risk scores and employing real-time monitoring capabilities, Fraud.net empowers organizations to enhance their fraud detection efforts and safeguard against fraudulent activities.

Stay ahead of fraudsters by booking a demo to discover cutting-edge solutions to protect your business from this pervasive threat.

Nonrepudiation

Nonrepudiation is the assurance that somebody can't deny something. Typically, nonrepudiation refers to the ability to ensure that a party of a contract or a communication cannot deny the authenticity of their signature on a document or the sending of a message that they originated. To repudiate means to deny.