A Smarter Way to Combat Duplicate Account Fraud: Velocity Rules

In today's digital landscape, businesses are increasingly vulnerable to fraud and abuse tactics, with duplicate account fraud emerging as a persistent challenge across various industries. From online gaming platforms and financial institutions to telcos and retailers, the challenge of managing multiple accounts opened by the same individual is becoming more complex as fraudsters exploit loopholes in order to manipulate offers, promotions and rewards programs.

According to Riskified, 90% of online merchants say policy abuse - such as creating multiple accounts to redeem discounts or loyalty rewards - is significantly impacting their profitability. This widespread issue forces businesses to strike a delicate balance between offering competitive promotional deals and protecting their bottom line.

The gaming sector is particularly vulnerable to various forms of fraud, including multi-accounting and bonus abuse, where fraudsters use fake or stolen credentials to create multiple accounts. This leads to exploitation of sign-up bonuses, allowing scammers to stack accounts with free credits and manipulate gameplay for guaranteed wins, a tactic known as match betting. Fraudsters may also engage in gnoming, where they control multiple accounts at the same table to ensure one wins, or chip dumping, where they intentionally lose to funnel winnings into a specific account. Beyond distorting fair play, these schemes severely impact the platform's financial performance and trust within the gaming community.

Additionally, gaming platforms face affiliate fraud, where deceptive tactics are used to exploit affiliate marketing programs for personal profit, and account takeovers, where fraudsters hijack player accounts to make unauthorized purchases. This not only compromises platform security but also erodes player trust. Payment fraud, including the use of stolen credit cards and abuse of mobile top-ups, further exacerbates the financial risks for gaming operators. To counter these threats, stricter forms of user authentication, such as biometric verification, are becoming increasingly essential in maintaining platform security and integrity.

These activities are not merely nuisances - they come with substantial costs. For businesses, they lead to lost revenue, higher operational expenses, and potential reputational damage. For customers, they undermine trust and degrade the overall user experience. As a result, it's crucial for organizations across all sectors to implement advanced solutions to detect and prevent duplicate account openings.

How to Fight Back

One of the most effective ways to combat duplicate account fraud is by setting up rules to monitor velocity. Velocity rules analyze the rate of certain behaviors or transactions, identifying patterns that suggest fraudulent activities. By applying these rules, businesses can detect and prevent attempts to open multiple accounts within a specified timeframe or under suspicious conditions.

For example, in gaming, velocity rules can be used to limit the number of accounts a single user can create from the same IP address or device within a short period. In the financial sector, such rules can help detect and block attempts to open multiple accounts under the same identity to take advantage of promotional offers.

Velocity rules offer flexibility and precision, allowing organizations to tailor their fraud prevention strategies to their unique needs and risk profiles. They can be configured to trigger alerts or take automated actions, such as blocking account creation or requesting additional verification when certain thresholds are met. This level of customization ensures that businesses maintain a balance between fraud prevention and a seamless user experience.

Monitoring Velocity is in Your Hands

At Jumio, we understand the importance of staying ahead of fraud trends. That's why we're excited to announce our latest release which allows customers to create rules based on velocity criteria within the Jumio Portal.

With the power of velocity rules, you can define custom parameters that align with your organization's risk tolerance and compliance requirements, giving you greater control over who accesses your platform and how often. Whether you are combating bonus abuse in gaming or promotional exploitation in banking, our solution offers a powerful tool to safeguard your operations.

Ready to Take the Next Step?

Protecting your business from fraud doesn't have to come at the expense of a seamless customer experience. Using velocity rules will help you prevent duplicate accounts effectively while building trust and maintaining transparency with your users. By leveraging our advanced fraud prevention tools, you can confidently protect your business, enhance your reputation, and deliver the exceptional experience your customers deserve. Reach out to us today to learn how Jumio can help you stay ahead of fraud and keep your business secure.

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