New Account Origination

Dynamic Digital Identity Intelligence on New Account Applicants

Avoid Fraud From The First Interaction

New account origination fraud occurs when a cybercriminal uses another person’s personal information and credit rating to create a new account, take out a loan, or make purchases using stolen credentials. As banks, lenders, credit card providers, and e-commerce businesses compete for a growing number of online and mobile customers, it becomes imperative to understand the true digital identity behind every new account application.

Demand for digital banking and lending is booming. According to McKinsey, 51% of all consumers regularly use online or mobile banking. But 21% of us–1 in 5 consumers–have done so for the very first time just since March 2020.

For banks, credit card providers, and e-commerce businesses surging digital adoption represents an unprecedented opportunity. But delivering complex, transaction-based services in digital channels comes with significant risk.

Together with account takeover attacks, for instance, new account origination fraud leads to more than $16.9 billion in annual losses, according to Forbes.

Not Just Stealing Identities – Creating Them, Too

In some instances, cybercriminals use stolen identity information to open up accounts or take out loans, running up bills and maxing out cards in “bust-out” schemes.

In others, stolen social security numbers or other pieces of personally identifiable information (PII) are used to stitch together hundreds or even thousands of synthetic identities. Each will steal an average of $107,000, according to TransUnion. Today, 20% of all credit card losses are believed to stem from people who don’t exist.

To avoid massive losses and succeed in an increasingly digital marketplace, banks and lenders need to eliminate this kind of fraud at the source.

The Good News: ADARA Does It For You

By leveraging the power of global data consortiums, ADARA measures the trust of more than a billion of the digital identities that do business with you. Through ADARA’s Digital Recognition Framework, you can:

  • Eliminate Friction and Increase Conversion for Trusted Customers
  • Understand Risk Based on an Internet-Scale Data Set
  • Identify and Block High-Risk Identities

Ready to accelerate customer conversions and
secure your business?

Schedule a Demo