Company
Date Published
Author
Dan McNulty
Word count
2702
Language
English
Hacker News points
None

Summary

New account fraud, also known as signup fraud, involves the creation of fake or duplicate accounts by fraudsters using synthetic data and automated scripts, often on a large scale, to exploit promotions, evade bans, or manipulate systems. This type of fraud can significantly impact businesses by draining resources, skewing metrics, and eroding trust, as fake accounts are used for activities such as incentive abuse, ban evasion, spam, and manipulation. Detecting and preventing such fraud is challenging because fraudsters can easily reset or spoof IP addresses, user agents, and cookies, often mimicking legitimate user behavior to avoid detection. To combat new account fraud, businesses are advised to implement multi-layered security measures, including device and browser fingerprinting, email or phone verification, and monitoring for high-risk signals, while balancing these strategies with maintaining a positive user experience. The Fingerprint platform offers a robust solution by providing accurate device identification and smart signals to detect suspicious activities, allowing businesses to effectively manage fraud prevention and maintain the integrity of their platforms.