Prevent fraudulent user registrations by verifying users during signup or registration. Fake account fraud is common for a variety of reasons, from catfishing to impersonation of real people or brands on social media, to financially motivated attacks like reward abuse on retail sites, money laundering via online banking, and scalping tickets and other products at event websites. In addition, spam registrations can lead to a surge of email notifications for site owners and overload server resources causing performance degradation.

Fraudsters use fake or stolen identity information to open new accounts. This is commonly known as account origination fraud or fake account fraud, and it costs companies over $3 billion per year in losses. To combat the problem, site owners must deploy advanced new account fraud prevention that checks for fraud patterns, suspicious devices and behavioural biometrics during the registration and login user journey.

How to Monitor Compromised Passwords and Detect Stolen Login Credentials

One of the most effective ways to prevent new account fraud is to require strong passwords. Requiring a minimum length and requiring a mix of upper and lowercase letters, numbers and special characters will help to deter many fraudsters. Other preventive measures include checking the profile details for suspicious, nonsensical information, analyzing the activity of existing users (such as excessive self-promotion), and blocking specific devices or IP ranges. Lastly, it is also important to use threat blocklists that are updated on thousands of reports per second with the latest abuser data from across the globe. This helps to filter out the vast majority of abusers, reducing the need for manual review.