The best way to handle is by stopping it before it spreads. Follow these guidelines to help increase your methods of fraud detection when new customers open accounts with your organization.
Verifying an applicant’s identity early in the application process helps prevent fraudulent activities from increasing. For example, authentication software may verify the applicant’s social security number with an address or phone number to authenticate the applicant’s identity. For additional effectiveness, the software should mine data from its internal database and external databases to link a number of other unique data points, such as the applicant’s name, address, and birthdate, to ensure the information is accurate and matches a true identity.
Also, authentication software should take note of the applicant’s method of access, time of application, speed of transaction and other details for analyzing and authenticating the applicant’s identity. Suspicious behavior should be noted if the applicant exhibits behaviors outside typical patterns of other applicants. If this is the case, you should mark the appplicant for further investigation. If the behavior appears in line with the typical applicant behaviors, the software should mark the applicant as a low risk and continue processing the information.
Your company can improve its predictive models by mining data from outside sources to uncover behavior patterns that differ from typical behavior patterns and may be signs of fraudulent activity. Because criminals often use the same false identity with various companies, fraud consortiums are being created to share information on account opening fraud prevention and recognize patterns among repeat offenders to stop their activities.
Studying the Latest Trends
Because criminals are always looking for new ways to overcome anti-fraud technology, you and your staff must remain current with new ways of detecting fraud. Since your team is one of your best defenses against fraudulent activities, ensure you hire workers who are curious and creative when studying data and uncovering patterns of behavior that may be signs of fraudulent activities.
Stay on the front end of fraud detection by following these guidelines. For further help with keeping your company protected against account opening fraud, contact the financial compliance recruiters at CarterWill Search & Flex today!
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