Sometimes known as: Automated Account Creation, Account Creation Fraud
Applying for new online accounts and memberships using fictional user information.
The end goal of the fraudster may not be strictly financial. It can be used to “test” stolen credit card details, flood a review site with positive reviews, falsely fully book a restaurant, download software or apps many times in order to get it noticed on a ‘most downloaded’ list or ‘top rated’.
Similar to Application Fraud – fraudsters will use false information in account creation. The account creation can be automated using a script or bot. Sometimes the job is outsourced for a few cents per account.
Early fraud detection – being able to detect this behaviour gives accurate and early indicators that a negative or fraudulent action is being planned and stops it before damage is done.
A common methods of setting up multiple accounts is the same method used in some of the most devastating attacking: using a bot or script, you can mitigate against this by using security challenge to test if the user is actually human.
NuDetect is used by many of our clients to accurately assess the chance that a new account is being created by a bot or script, if the risk score reaches a certain level, our client may choose to issue a risk-based authentication challenge.
Users who are identified as ‘good’ will see a seamless signup process with no security challenges the more signs of automation that we capture, the more difficult the security challenge becomes.
This method of early fraud detection gives you the option to only show security counter-measures later, such as at the point of sale.
Contact us to find out how we can help protect your customers.[/text]