Fraud Risk Scheme:
Opening multiple accounts under false identities is a technique used by fraudsters to mask their activity, launder money, or exploit promotions and bonuses reserved for new customers (bonus fraud or bonus abuse). The fraudster uses several synthetic or stolen identities to create a large number of accounts. Each account is used in a limited manner to evade detection thresholds, thereby allowing the construction of a network of mule accounts for large-scale fraudulent activities.
Detection:
Same IP address/Device ID for multiple accounts: Identification of multiple attempts or openings of distinct accounts using the same IP address or the same device identifier (device fingerprint) within a short period of time.
Multiple account creations in a short interval: Monitoring a high volume of account opening requests originating from the same source or the same geographical area over a short period, often an indicator of automation.
Composite or inconsistent data: Detection of information that overlaps between different accounts (for example, the same phone number for two different names, or the same email address for multiple residential addresses).
Prevention:
- Limitation of accounts per user (according to criteria): Implementation of technical and business rules to limit the number of accounts that a single person or entity is authorized to hold (based on address, legal identity, or unique identifier).
Share your feedback:
What tools, techniques, and processes are used in your organization to detect and prevent such fraud schemes?
