Digital transactions' speed is a gateway to account fraud
Fraud related to account opening has become a costly issue in the digital age.
The 2018 Identity Fraud Study by Javelin Strategy & Research found the fraud landscape has grown more complex in part due to the growth in fraudulent account openings. The study noted 1.5 million victims of fraud that involved existing accounts had an intermediary account opened in their name first.
There are several reasons account opening fraud has become such a challenge in the last few years. Growing consumer expectations for 24/7 digital access and real-time decisions as well as competitive pressures have reduced the time that organizations have for manual review. This is creating an environment ripe for fraudsters to exploit.