With COVID-19 and remote work driving more consumers online, many companies now find themselves struggling with a rise in digital onboarding. The mass adoption of online services and apps allows more people to use services that they might otherwise not have had access to without in-person engagement. However, this creates new opportunities for identity fraud, and banking and financial institutions have been hit particularly hard by fraudsters.
To fight back, financial institutions must enact stronger fraud detection and prevention measures capable of mitigating these heightened risks without creating too much friction for honest transactions. Below are some of the latest methods fraudsters are using to exploit digital onboarding and some key steps financial institutions can take to protect themselves and their customers.