What is new account fraud?
New Account Fraud occurs when a fraudster opens a new account using someone else’s personal information. There are numerous types of new account fraud such as utility fraud, loan fraud and credit card fraud.
How does new account fraud happen?
When applying for a new account, the fraudster uses some or all aspects of the real consumer’s identity in order to pass traditional identity verification checks that utilize credit header and public records data. However, because of recent data breaches, much of this information has been leaked and is easily accessible to career criminals.
How does Zumigo help prevent new account fraud?
Zumigo adds an additional layer of authentication that leverages multiple intelligent networks. While a fraudster may know a consumer’s name, address, Social Security number, and date of birth, they don’t often know their mobile phone number. Verifying whether the mobile phone number is associated with other user information can identify discrepancies and highlight potential fraud.