Identifying and Eliminating Multiple Account Management: The Role of Sumsub in Impacted Sectors
In the digital age, multi-accounting has become a growing concern for businesses across various sectors. This practice, where an individual creates multiple accounts for exploitative purposes, can lead to a host of issues, including money laundering, regulatory fines, reputational damage, and more.
Companies should be vigilant and prompt in identifying the signs of multi-accounting. Red flags include multiple accounts created from the same device or IP address, rapid creation of numerous accounts within a short time frame, similar or identical account information, unusual patterns of account activity, abnormal purchasing behavior, attempted misuse of promotional offers, inconsistent or suspicious user behavior, anomalies in transaction patterns, and attempts to evade security measures.
Fortunately, there are solutions available to help businesses avoid monetary losses due to multi-accounting. Sumsub, for instance, offers an AI-driven solution that detects 95% of multiple accounts early. This solution can be customized for various industries and businesses, providing a tailored approach to fraud detection.
For a comprehensive approach, companies can adopt a combination of advanced technical solutions and strong operational controls focused on fraud detection and identity verification.
Utilizing device intelligence and behavioral analytics is a key strategy. Platforms can detect patterns indicating multi-accounting, such as multiple accounts accessed from the same device or network, unusual behaviors, and the use of emulators or VPNs to mask identity. Solutions like JuicyScore analyze over 65,000 data points including device signals, user behavior, and connection data to identify linked accounts and abnormal patterns in real time.
Implementing identity and entity monitoring is another essential strategy. This involves verifying customers via multiple factors including device fingerprinting, IP address tracking, and behavioral biometrics (patterns of clicking, typing, or other user interactions). By focusing on entities (devices, IPs) and identities, companies can flag synthetic identities or suspicious account creation activity.
Adopting robust fraud control processes and controls is also crucial. Segregation of duties, limits on account actions, thorough transaction confirmations, and maintaining audit trails help detect irregularities early. Regular monitoring and review of accounts with suspicious activities minimizes risks of undetected multi-accounting or laundering schemes.
Collaborating with financial institutions and advisors can also be beneficial. Banks and fraud risk experts contribute expertise and increasingly offer fraud detection technologies as part of their service. Partnerships with such entities enable better information sharing and risk mitigation tailored to the specific industry.
Educating employees and customers is another vital aspect. Training employees to recognize fraud patterns and educating customers on security best practices (e.g., using strong, unique passwords, updating contact info, enabling transaction alerts) reduces vulnerability to fraud and enables quicker response to suspicious activities.
By integrating these approaches—advanced technological detection, strong operational controls, and stakeholder education—companies can effectively prevent and detect multi-accounting. This reduces exposure to money laundering risks, regulatory fines, and reputational harm across various sectors where digital identity fraud is prevalent.
However, implementation details vary by industry and platform complexity, and continuous updating of fraud models is crucial since fraudsters evolve tactics frequently.
Last year, social media was the industry most susceptible to fraud, with users creating multiple accounts to inflate follower counts, amplify influence, or evade bans. On various online subscription services, individuals may exploit free trial periods, access region-restricted content, or share accounts without authorization. In iGaming, bonus abuse is the most widespread form of multi-accounting, accounting for 69.9% of total fraud. In fintech, individuals often use multiple accounts for sign-up bonuses, promotional offer exploitation, and money laundering, with neobanks being particularly targeted by money mule scams. In crypto, multiple accounts can be used for money laundering, phishing attacks, and "pump and dump" scams.
In conclusion, businesses must remain vigilant against multi-accounting and adopt a multi-faceted approach to fraud detection and prevention. By doing so, they can protect themselves from the financial, regulatory, and reputational risks associated with this practice.
- To combat the issue of multi-accounting in the digital age, businesses should explore AI-driven solutions like Sumsub for early detection, which has proven effective with a 95% success rate.
- In the fintech industry, businesses should be wary of individuals using multiple accounts for sign-up bonuses, exploitation of promotional offers, and money laundering, particularly neobanks which are common targets of money mule scams.
