Whether opening new email validation PHP API for personal or business purposes, fraudsters look to monetize these fake accounts as quickly as possible. They use stolen consumer details, synthetic identities or a combination of both to create and exploit new accounts in order to commit crimes including credit card fraud, money laundering, identity theft and more. This type of fraud is known as new account fraud and it can be challenging to spot. Here are some of the most common ways to identify and prevent this type of fraudulent activity.

Fraudsters can go to great lengths to pass Know Your Customer (KYC) checks by creating multiple fake profiles with a range of information, such as name, address, date of birth and gender. They can even create multiple phone numbers to increase the chances of getting a correct answer on security questions. They may add a trusted device and other authentication steps to make the new account appear more legitimate.

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The best way to prevent new account fraud is by using a solution that can detect these anomalies, such as assessing the legitimacy of new accounts using behavioral attributes. For example, it should be able to identify non-human ways of interacting with a device to weed out bots and emulators. Also, it should monitor early account activity closely to look for suspicious patterns like multiple accounts created from the same device.

Finally, it’s essential to watch for unusual activity on new accounts during busy times, such as holidays and weekends when bank staff are typically reduced. This is a time when fraudsters are likely trying to transfer funds out before being detected.