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Fake Account Prevention and Detection

Getting Real About Fake Accounts and Account Opening Fraud

People create fake accounts for all kinds of reasons, from spreading misinformation on social media to scamming companies out of benefits intended for legitimate customers. Some of these schemes may seem relatively minor compared to other types of fraud, but their costs can be steep—especially when they’re part of a well-organized fraud scheme.

Verosint provides new account opening fraud prevention so that fake accounts don't have the ability to result in major negative consequences.
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-25%

Decline in PayPal stock value after its 2022 fake-account fraud disclosure


Source: Bloomberg.com
$81-97K

Loss per incident in financial services when someone creates a fake account  


Source: Fiverity.com
$152B

Amount of online consumer spending influenced by fake reviews


Source: World Economic Forum
How Fake Account Fraud Happens

How Does Account Opening Fraud Happen? Let Us Count the Ways

Fake accounts come in many forms and have a wide range of consequences. PayPal recently discovered 4.5 million fake accounts created by bot farms that fraudsters were using to automatically open accounts in response to marketing campaigns.

At Wells Fargo, new account fraud was happening on the inside, in a scheme to generate millions of dollars in fees and interest through fake account creation. And in 2023, the Associated Press reported fake account creation by fraudsters with falsified credentials collected billions in Covid-19 relief money from the federal government. These are just a few examples.
account fraud
The Impact of Account OPENING Fraud

The Tip of the Iceberg for Much Larger Consequences

The financial cost of fake account creation and account opening fraud goes further than stealing cash meant for legitimate new account signups.

The costs also extend to:

Extra operational resources required to maintain and support new account fraudsters
Overtaxed security personnel scrambling to identify and investigate new account fraud
Misguided sales and marketing strategies based on falsely inflated fake account numbers
Brand damage from misinformation campaigns from fake reviews
Loss of customers who shop elsewhere when fake accounts drive up demand for targetted products
Financial fraud, such as taking out loans or filing medical benefits using fake accounts
Compromised online platform security, including theft of assets and other forms of platform fraud
Fraudsters leveraging fake accounts to probe for vulnerabilities in real accounts

When Account Frauds Hits, Verosint Hits Back

Verosint provides new account fraud prevention and detects fake accounts that are already lurking in your customer base, as well as to prevent future new accounts fraud from occurring.
We analyze and assess all of a company’s accounts for risk, correlate account information to identify fake accounts, and target illegitimate accounts for removal.
We stop future fraud at the point of login, working with partners in identity and access management (IAM) to challenge and block fraudulent registrations.
The same methods and technologies that allow you to repel fake accounts also make it easy for you to onboard new customers. When there are signs of fake-account fraud, challenges follow; when there are not, you can quickly onboard new customers with confidence.
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