The Scale of the Problem Multi-account fraud is rampant, with fraudsters creating numerous accounts to exploit promotions, commit financial crimes, and manipulate platform ecosystems, leading to significant financial losses for businesses.

The Challenges of Detection Traditional methods like IP address tracking and email verification are easily circumvented by sophisticated fraudsters using VPNs, disposable email addresses, and other techniques, making detection increasingly difficult.

Proactive Prevention is Key Implementing robust identity verification measures, behavioral analysis, and device fingerprinting can effectively deter and detect multi-account fraud before significant damage occurs.

Didit's Solution Didit's AI-native identity platform offers a comprehensive suite of verification tools, including liveness detection and face search, to identify and prevent multi-account fraud with a free tier to get started.

Understanding Multi-Account Fraud

Multi-account fraud, also known as duplicate account fraud or sockpuppetry, involves a single individual or group creating and managing multiple accounts on a single platform. The motivations behind this type of fraud vary, but often include exploiting promotional offers, manipulating reviews or ratings, conducting financial fraud, or evading restrictions imposed on a single account. This fraudulent activity can severely damage a company's revenue, reputation, and user trust.

For example, a user might create multiple accounts on an e-commerce platform to repeatedly use a new customer discount. In the gaming industry, multiple accounts can be used to gain an unfair advantage or to farm in-game currency. Social media platforms are often targeted for spreading misinformation or artificially inflating engagement metrics. The consequences range from financial losses to erosion of platform integrity.

Common Tactics Used by Fraudsters

Fraudsters employ a variety of techniques to create and manage multiple accounts while evading detection. Some common tactics include:

• Using VPNs and Proxies: Masking their original IP address to appear as if they are accessing the platform from different locations.
• Employing Disposable Email Addresses: Utilizing temporary or fake email addresses to create numerous accounts without being tied to a single, verifiable identity.
• SIM Farming: Acquiring multiple SIM cards to bypass phone number verification requirements.
• Device Spoofing: Altering device identifiers to make each account appear to originate from a unique device.
• Using Bots and Automation: Employing automated scripts to create and manage accounts at scale, making it difficult to distinguish them from legitimate users.

Challenges in Detecting Multi-Account Fraud

Detecting multi-account fraud is challenging because fraudsters are constantly evolving their techniques to circumvent security measures. Traditional methods like IP address tracking and email verification are no longer sufficient. For example, a fraudster using a VPN can easily bypass IP-based restrictions, and disposable email addresses are readily available. Behavioral analysis can be effective, but requires sophisticated algorithms to identify subtle patterns indicative of fraudulent activity. Furthermore, privacy regulations can limit the amount of data that can be collected and analyzed, making detection even more difficult.

One of the most effective methods to combat multi-account fraud is through robust identity verification processes. By requiring users to verify their identities with government-issued IDs and biometric data, platforms can significantly reduce the number of fraudulent accounts created. However, this approach must be balanced with user experience to avoid deterring legitimate users.

Strategies to Prevent Multi-Account Fraud

To effectively combat multi-account fraud, businesses need to implement a multi-layered approach that combines various detection and prevention techniques:

• Implement Robust Identity Verification: Use ID Verification (OCR, MRZ, barcodes) to confirm user identities. Didit's ID Verification can automatically decline submissions where the document is expired or doesn't meet minimum age requirements. Leverage NFC Verification for ePassports/eIDs for high-security environments.
• Employ Behavioral Analysis: Monitor user behavior for suspicious patterns, such as rapid account creation, unusual transaction activity, or inconsistent usage patterns.
• Utilize Device Fingerprinting: Collect and analyze device identifiers to identify accounts originating from the same device, even if the user is using a VPN or proxy.
• Implement Liveness Detection: Use Passive & Active Liveness checks to ensure that the user is a real person and not a bot or a deepfake. Didit's Face Search technology can automatically detect duplicate users during liveness checks by comparing facial biometrics against previously verified users.
• Integrate with Blocklists: Maintain a blocklist of known fraudulent users and devices to prevent them from creating new accounts. Didit's Face Search seamlessly integrates with blocklist features.
• Monitor User Activity: Continuously monitor user activity for suspicious behavior and investigate any anomalies promptly.

How Didit Helps

Didit offers a comprehensive suite of identity verification and fraud prevention tools designed to help businesses combat multi-account fraud effectively. Our AI-native platform provides a modular architecture, allowing you to customize your verification workflows to meet your specific needs.

Key Didit products for preventing multi-account fraud include:

• ID Verification: Verify user identities with government-issued IDs using OCR, MRZ, and barcode scanning. Configurable verification settings allow you to decline, review, or approve based on risks like duplicated users or data inconsistencies.
• Passive & Active Liveness: Ensure that users are real people with advanced liveness detection technology.
• 1:1 Face Match & Face Search: Detect duplicate accounts by comparing facial biometrics against previously verified users. Didit's Face Search technology automatically performs duplicate detection during liveness checks.
• Phone & Email Verification: Validate user contact information to prevent the use of disposable email addresses and fake phone numbers.

Didit's Face Search (1:N) technology allows you to search for a specific face across all your approved identity verification sessions. This helps identify duplicate accounts and prevent fraud. The system automatically compares facial biometrics against all previously verified users, flagging potential duplicate accounts based on configurable similarity thresholds. High accuracy is achieved through advanced biometric algorithms, and searches are processed rapidly even with large user databases. The similarity percentage indicates the likelihood of a match, with high percentages (90%+) indicating a strong likelihood that the faces belong to the same person.

With Didit, you can automate your KYC processes and reduce the risk of multi-account fraud. Plus, Didit offers Free Core KYC with pay-per-successful check pricing and no setup fees, making it an accessible solution for businesses of all sizes.

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