Preventing online account origination fraud

As consumer demand for more online banking services grows, fraudsters are finding more and more ways to exploit these services. While not a new scheme, online account origination fraud has grown in part because of the prevalence and ease of use of online banking services, and in part because of the number and scope of data breaches allowing bad actors access to a large amount of consumer data.

In this blog post, we’ll discuss common tactics used in online account origination (OAO) fraud, and controls that can help prevent losses.

Common tactics

Often, fraudsters use stolen identities and banking information to perpetrate fraud when opening new accounts online. The use of real information can make this type of fraud much more difficult to detect, especially because of the relative anonymity associated with online banking.

 

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