Today, business starts and grown digital. The pandemic has accelerated this process, pushing online services to evolve to digital onboarding procedures instead of traditional, face-to-face ones. As always happens, fraudsters are moving in the same direction, resulting in a significant increase in Application Fraud. The security issues related to the onboarding process transversely concern and Financial Services, e-commerce, and PA. Therefore, it is necessary to allow digitized access to the service while recognizing fake or defrauding users in this context.


Application Fraud is a form of identity fraud that involves a fraudster applying for a new account in an online service using stolen or synthetic identities. Application fraud is usually the consequence of previously accomplished data breaches that provide the fraudster with massive personal information data sets. These are used to forge synthetic identities or to impersonate somebody else.
The targets are often bank accounts, credit or debit cards, public administration, e-commerce, and loans, to name a few. For example, the onboarding procedure for Challengers Banks is app-based. There is no direct contact, just the device camera for taking photos of the documents and a self-compiled form. This makes things easier for the customer while creating a problem in dealing with identity validation. Verify the customer’s identity becomes an urgent need for banks.


Application Fraud imposes new challenges and requires new approaches in detection and protection. The financial institutions should let convergence traditional fraud monitoring with Anti Money Laundering instruments. Preventing Application Fraud requires a holistic approach that takes into consideration several factors:

  • user information collected while onboarding;
  • user’s biometric behavior evaluation;
  • device fingerprints reputation;
  • real-time analysis of account behavior considering incoming and outgoing payments.

Combining all this information makes fraud detection highly effective.


At XTN, we strongly believe in supporting Digital Services and their evolution needs through our consolidated Fraud Protection tools. XTN Cognitive Security Platform® offers dedicated modules capable of detecting Application Fraud. XTN’s unique holistic approach corroborates the endpoint identity, the behavioral and transactional analysis. Cognitive Security Platform® effectively spots fraudulent attempts, such as:

  • new account registration based on a stolen or synthetic account;
  • incoming fraudulent funds to mule accounts;
  • cash-out transactions originating from a mule account.