THE THREAT OF FAKE USERS

Follow the Fraud

Data from "The Fraud Report: How Fake Users Are Impacting Business,”
conducted by Ponemon Institute and sponsored by TeleSign.

FAKE USERS

Online and mobile app-based account fraud is an epidemic that is impacting companies and their users on a global scale. In many cases, the trouble begins when “bad actors” are able to register for accounts. With user bases considered a critical asset with an average value of $117 million, companies need to prevent these users from entering their ecosystem.

82%

of companies surveyed confirm fake users are a problem; 44% report them as a significant problem.

WHEN A NEW USER IS NOT VERIFIED AT ACCOUNT REGISTRATION…

COMPANIES RISK ALLOWING
BAD ACTORS INTO THEIR
USER BASE

THE MAJORITY OF BUSINESSES ADMIT THEY ARE NOT VIGILANT ABOUT VERIFYING NEW USERS…

64%

of survey respondents say their organization will choose smooth and easy registrations over security.

58% DO NOT HAVE A FORMAL PROCESS FOR DETERMINING THE LEGITIMACY OF A USER AT REGISTRATION.

ONCE FAKE USERS ARE REGISTERED, THEY CAN EASILY CREATE MORE ACCOUNTS AND WREAK HAVOC.

MALICIOUS ACTS FROM FAKE USERS INCLUDE SPAMMING, THEFT OF CONFIDENTIAL INFORMATION, CREDIT CARD FRAUD AND MORE.

53% PERCENT OF COMPANIES SAY THEY EXPERIENCE AN AVERAGE OF 50 SUCH ATTACKS AGAINST BONA FIDE USERS EACH MONTH AND IN THE PAST 12 MONTHS, FAKE USERS VICTIMIZED 21 PERCENT OF LEGITIMATE USERS.

THESE ATTACKS CAUSE ORGANIZATIONS TO LOSE AN AVERAGE OF 9% OF THEIR LEGITIMATE USER BASE.

A VAST MAJORITY OF THOSE COSTS (60%) ARE USED TO REPAIR BRAND REPUTATION.

On average, companies surveyed reported a user base of 19 million registered users. They also estimated 10% of those users are fake.

Large organizations spend as much as $14M to respond to malicious acts from bad actors.

$14M

IF A COMPANY DOES NOT STOP THE GROWTH OF FAKE USERS, THE VALUE OF THE USER BASE COULD DECLINE BY AN AVERAGE OF 47%. WITH THE AVERAGE VALUE AT $117 MILLION, THE DECLINE WOULD BE ABOUT $55 MILLION.

However, investments in creating a secure ecosystem can increase the value of your user base and protect your users from fraud.

KEEP FAKE USERS OUT FROM THE START

Businesses can securely verify end-users during the account registration process through fraud risk scoring and phone verification to help ensure each account is attached to a legitimate user.

AT ONLINE OR MOBILE APP ACCOUNT REGISTRATION, THE END-USER IS ASKED TO PROVIDE A VALID PHONE NUMBER.

TELESIGN’S SCORE API THEN EVALUATES THE NUMBER AND DELIVERS REPUTATION SCORING BASED ON PHONE NUMBER INTELLIGENCE, TRAFFIC PATTERNS, MACHINE LEARNING AND A GLOBAL FRAUD DATA CONSORTIUM.

IF THE RESULTING SCORE IS HIGH, IT IS LIKELY THAT THE END-USER POSES A FRAUD RISK AND SHOULD THEREFORE BE PREVENTED FROM CONTINUING ACCOUNT REGISTRATION WITHOUT FURTHER VERIFICATION.

The majority agree a phone number is enough to stop fraudulent registrations and protect account access.

TELESIGN CAN DELIVER PHONE VERIFICATION THROUGH A ONE-TIME CODE SENT TO THE END-USER'S PHONE NUMBER. THOSE UNABLE TO SUCCESSFULLY COMPLETE THE VERIFICATION PROCESS SHOULD BE CONSIDERED POTENTIALLY FAKE AND ANY FURTHER ACCESS SHOULD BE BLOCKED.

WHEN ORGANIZATIONS ARE ABLE TO ELIMINATE ALMOST ALL FAKE REGISTRATIONS AND BAD ACTORS, THE VALUE OF THE USER BASE COULD INCREASE BY AN AVERAGE OF 44 PERCENT.

Get the TeleSign Fraud Report

Download

Learn more about TeleSign Score

Learn More

Get Started With TeleSign

Sign Up Now
75%

agree the effective use of users' mobile identities to ensure a verified user is essential to their organization's competitive positioning.

82% of companies surveyed confirm fake users are a problem

Get the TeleSign Fraud Report

This interactive site is best viewed on laptop or desktop.