How To Detect New Account Fraud With Artificial Intelligence Technology

Fraud is a serious issue plaguing financial institutions. The Federal Trade Commission (FTC) reports that consumers lost a whopping $5.8 billion to fraud in 2021 alone. But while the numbers for 2021 were bad, 2022 was even worse…. The FTC just reported $8.8 billion was lost to fraud.

And that’s just what was reported.

These shocking statistics make robust fraud detection and prevention critical for financial institutions across the world. With the rising prevalence of fraud, it’s no surprise that new account fraud happens to be among the most prevalent types of fraud. Luckily, this type of fraud can be effectively detected and potentially prevented for institutions when using artificial intelligence (AI) fraud detection software from ToolCASE.

What Is New Account Fraud and What Are Some Common Methods?

As you know, new account fraud occurs when a criminal successfully opens an account after applying with either their own identity, a stolen identity or a synthetic one. The account is then used to commit frauds against the institution, such as card fraud and loan fraud, among others.

This particular fraud-type is on the rise because the criminal is often able to evade detection, and the personally identifiable information (PII) of real people is widely available for criminal use on the dark web.

Fraudsters use a variety of methods to perform their crimes, making it difficult for financial institutions to stay on top of all suspicious activity.

Until Now!

Since new account fraud can cost financial institutions millions of dollars in damages, banks and credit unions need more advanced fraud detection technologies. That technology is real-time AI fraud detection software. And it’s called RembrandtAi.

How To Detect New Account Fraud With AI Technology:

Fraud detection using AI has several potential applications in the fight against financial crime, making it the future of fraud detection, monitoring and prevention. RembrandtAI offers 24/7 monitoring that is, unfortunately, impossible with a physical fraud team alone.

RembrandtAi employs an entire database of information, from a near unlimited number of sources to detect and alert of unusual activity, as it’s occurring.

RembrandtAi Can Learn

RembrandtAi is incredibly proficient in detecting suspicious activity and learning from it. For example, the system can examine data from previous fraud instances to find common patterns and attacks from fraudsters. These might include geographical patterns, IP address logins, physical store locations where card fraud occurred, or even possibly device fingerprints.

The system then uses this information to detect suspicious behavior in new accounts, such as several new accounts established from the same location or device. Further, it has the ability to predict where new fraud threats may occur.

RembrandtAi Can Detect Fraud Across Several Different Channels:

AI systems like RembrandtAi, are able to utilize real-time data to monitor and protect against new account fraud across various channels. It does this by monitoring both online and offline transactions.

AI has several potential applications in the fight against financial crime, applications that go far beyond new account fraud.

In fact, ToolCASE’s best-in-class fraud detection and prevention system can assist fraud teams in identifying nearly every type of transactional fraud, in real-time!

Additionally, RembrandtAi can help reduce false positives, assuring a better relationship with banking clients and credit union members.

Traditional fraud detection approaches frequently produce a significant percentage of false positives, which may be costly and time-consuming for banks and credit unions to investigate, while causing friction with their depositors.

AI-based systems, like RembrandtAi, on the other hand, may be utilized to decrease false positives by employing powerful machine-learning algorithms and analyzing enormous volumes of data, and assigning a fraud score to each transaction as it occurs.

Essentially, what may look like fraud initially to the naked eye, could be shown to be a normal transaction by RembrandtAi. Conversely, what may look like a normal transaction by the naked eye, could be shown to be fraud by RembrandtAi, in real time.

RembrandtAI Can Effectively Analyze Large Amounts Of Data:

RembrandtAi fraud detection software is efficient at detecting new account fraud with its swift and effective ability to collect and analyze large volumes of data. In seconds, RembrandtAi can analyze massive amounts of data, such as transaction records and credit reports, finding abnormalities that may signal fraudulent activity. This enables financial institutions to detect new account fraud situations promptly and take action before large losses occur.

Optimize Your Fraud Detection, and reduce losses with ToolCASE’s RembrandtAi

For a full, one-on-one demonstration of RembrandtAi’s remarkable ability to detect new account fraud, simply click HERE to schedule your demo.