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What is Enrollment Fraud? How to Protect your Bank’s Security

Written by admin. Posted in Bank account verification software, Enrollment fraud solutions, Fraud prevention

Enrollment fraud is rapidly becoming the new face of identity fraud in financial institutions across the US. Estimates show that enrollment fraud could result in eight billion dollars in lost revenue by the end of 2018, and further jeopardizes the safety of other customers. But what is enrollment fraud, and how can you spot it? Here’s a basic overview of what this type of fraud looks like, and what you can do to prevent it.

What is enrollment fraud?

Also known as New Account Fraud (NAF), enrollment fraud is another form of financial identity fraud. The cybercriminal typically uses another person’s information (typically a social security number) to open an online bank, loan, or credit account. A savvy cybercriminal will use a different address so that their victim never sees any mail from the fraudulent account. Typically, the fraudster will start by making small deposits and withdrawals from the fraudulent account in the first 30 days, often at the end of the week or be