Application Fraud

Combat application fraud during the digital account opening process

Business Challenge

Mitigate application fraud without turning away qualified customers

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Cumbersome Experiences Lead to Abandonment

Financial institutions (FIs) with long account opening processes and a poor customer experience fall short of expectations – resulting in abandonment rates as high as 95%

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Application Fraud is at an All-time High

Data breaches make it easy for fraudsters to open accounts with stolen information. Without the ability to detect fraudulent identities in real time, FIs will continue to incur losses

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Compliance Requires the Right Tools

FIs that cannot validate the identity of remote applicants and prove that they followed a compliant process risk fines, reputational damage, and other impacts on the business

Application Fraud Challenges

Julie Conroy, research director at Aite Group, discusses:

  • Why organized crime rings are shifting their focus towards application fraud 
  • How breached data records are fueling attacks
  • How financial institutions can react
Solutions

Help prevent application fraud in account opening and lending

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Quickly Verify Identities Remotely

Detect manufactured or synthetic identities with multi-layered digital identity verification methods

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Ensure the Authentic Applicant is Present

Use facial comparison to determine whether a remote user is authentic and present

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Capture Customers’ Consent Electronically

Automate signing workflows and capture consent with legally binding e-signatures

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Protect Against Mobile Fraud

Thwart unauthorized applications for new credit products and stop automated malware or bot activity

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Leverage Digital Audit Trails

Capture a record of everything the applicant saw and did during the process, for compliance purposes

How it Works

See how OneSpan helps financial institutions fight application fraud in the digital account opening process

Aite Group research revealed that application fraud was second only to account takeover fraud as the biggest challenge for financial institutions.

OneSpan’s Agreement Automation solution provides mobile ID capture, ID verification, and signing capabilities to provide a positive customer experience while mitigating identity theft and new account fraud across digital channels.

Quickly Verify Identities Remotely

Ensure ID documents are legitimate with digital identity verification

Application fraud and other identity theft crimes continue to challenge banks and FIs. Automated ID document verification and facial comparison enable a customer’s identity to be validated in real-time, whether the transaction takes place online or via mobile.

OneSpan Agreement Automation automates new digital customer onboarding and reduces fraudulent enrolments by positively identifying qualified customers during the application process.

Ensure the Authentic Applicant is Present

Leverage biometric authentication to verify identities across your digital channels

During the digital account opening process, financial institutions must determine whether the remote applicant is who they claim to be. Best practice is to leverage facial comparison capabilities to extract biometric indicators from a selfie and compare that against the image in an authenticated ID document.

After the applicant has been onboarded, biometric authentication methods can be used to verify known customers using facial recognition and fingerprint scans.

Application Fraud Explosion: Do You Know Your Customers?

Financial institutions are taking important steps to detect application fraud in order to avoid increasing losses. In this webinar, Aite Group Sr. Analyst Shirley Inscoe discusses the latest fraud detection techniques and best practices for lowering application fraud.

Capture Consent Electronically

Automate your signing workflows with e-signatures

Secure your digital account opening processes by integrating electronic signatures.

OneSpan Sign balances ease of use with the highest levels of security and compliance to deliver a risk-free e-signature solution for all your business needs.

Protect against Mobile Fraud

Mitigate fraud with mobile security capabilities

Data breaches, malware, and phishing attacks are fueling the rise in identity theft and third-party application fraud. OneSpan offers comprehensive security capabilities to protect mobile users and applications, including:

  • Persistent device identification to bind user accounts to trusted devices and thwart unauthorized attempts to apply for new credit products
  • Mobile app shielding and behavioral biometrics to identify and stop automated malware or bot activity
Leverage Digital Audit Trails

Protect your organization with comprehensive audit trails

To prove that a compliant account opening process was followed, financial institutions can capture a full audit trail of exactly what the applicant saw and did during an account opening process – including the identity verification and signing steps.

Digital audit trails prove that the FI carried out all necessary KYC checks and that the applicant intented to be bound by the terms of the agreement. Audit trails provide a complete record of the account opening process and can protect financial service providers against legal or compliance disputes.

More than half of the world’s top 100 global banks use OneSpan’s digital identity & anti-fraud solutions

Why OneSpan

Domain Expertise

Financial institutions around the world choose OneSpan for our proven fraud prevention technologies and extensive expertise in financial digital channels. We understand the complexity of account takeover fraud – and provide the risk-based intelligent analytics to fight it. 

 

Secure Digital Customer Journeys

We bring together best-in-class security solutions that work together to secure the digital customer journey and mitigate fraud. By establishing trust in digital identities, devices, and transactions, we help you reduce fraud, increase top-line growth, and strengthen compliance as you modernize the customer experience.

Customer Commitment and Support

We’re known for taking a hands-on approach. Customers appreciate our industry leading post-launch support, where we provide ongoing help to fine-tune fraud prevention, increase efficiency, and improve adoption rates.

 

Flexible Solutions and Cloud-based Platform

Our solutions are designed to integrate seamlessly with third-party and in-house systems, so you can continue to leverage your existing technology investments while advancing your digital transformation with next generation technologies.

In addition, our SaaS solutions are delivered on a platform that makes it easy to integrate new and existing tools and technologies, to better detect fraud and improve the user experience. 

Questions? We are ready with answers

OneSpan can help you prevent application fraud and enable digital channel growth