Account creation fraud prevention  is a popular attack vector because stolen consumer data is readily available and affordable thanks to cybercrime-as-a-service and the commoditization of tools. Attackers combine this data with automation and fictitious or synthetic identity information to open fraudulent accounts at scale. Account creation fraud can be used to monetize the accounts by exploiting promotional offers or attempting to gain access to credit cards, loans and other financial services. Moreover, fake new accounts can be a threat to brand reputation by spreading spam messages and misinformation.

Securing the Gateway: How to Thwart New Account Opening Fraud in Your Business

While stringent authentication measures at account sign-up can impact conversion rates, too lenient an approach may leave organizations vulnerable to this type of attack. Fortunately, there are ways to prevent account creation fraud by evaluating user information beyond a new user’s email address, device fingerprint and IP addresses.

The most effective solutions to stop fake account creation use a combination of passive and active signals to assess the validity of the user’s new account request. Passive indicators such as mobile network connectivity, the geographic distribution of a device’s IP address and previous activity associated with an email or phone number can all be used to identify patterns indicative of malicious intent. Active signals such as the speed at which a new account is created and the frequency with which the new account is changed can also indicate a risky profile. Combined with advanced AI, these indicators can help detect account creation fraud at the point of user registration.