How to Perform Frictionless Fraud Prevention at Onboarding

October 7, 2022

During our first session of Fraud Office Hours, an attendee asked, "What’s an effective way to layer in frictionless fraud prevention at onboarding?" Watch this video clip and read below to see how Unit21's Head of Fraud Risk, Alex Faivusovich, responded.

Layering in Frictionless Fraud Prevention at Onboarding

"When it comes to onboarding, (and I think this refers to Fintech companies and crypto companies who, two years ago, were doing this), there was a mindset of doing 'onboarding at all costs. Let's bring volume.'

Like, 'let's bring as many people in as we can. Let's make huge campaigns in social media and try to open the top of the funnel as much as we can.' But I think now, especially with the stressful economic climate that we are entering, we're seeing a much more balanced approach when it comes to onboarding.

So frictionless onboarding can be achieved if you take all the signals that you get from the applicant during his onboarding journey. You look at them separately, so you understand all the different elements of the PII. You understand what risk is associated with their email, what risk is associated with their phone number, and what risk is associated with their address. How the correlation is working between the actual entity and the email, phone, and address.

What is the risk associated with the device? Can we learn something about the device? Do we think this device is a legit device? So maybe somebody is using some type of emulator. So if you can take all those elements apart, (and this is also a good way to look for an identity verification vendor), try to find a vendor who gives you all those different elements and give you insights on all those different elements.

Then, you can pretty much start layering your risk strategy around those different PIIs and say, 'Okay, if the PIIs look good, let's see how the email looks. Let's see how the form looks. Let's see what we know about the address.' And put different thresholds and different signals in place to ensure you're actually catching the bad guys."

Looking for more insights? Check out our first session of Fraud Office Hours on-demand for a deeper dive into current fraud trends and which preventative measures to consider.

New call-to-action

Getting started is easy

See first-hand how Unit21
can help bolster your risk & compliance operations