The 3 Top-of-Funnel Fraud Capture Pain Points that Kill Onboarding—And How to Solve Them

The 3 Top-of-Funnel Fraud Capture Pain Points that Kill Onboarding—And How to Solve Them

Less than half of fraud prevention decision-makers believe that their solutions are effective at account opening. While the consequences of fraudsters completing applications are severe, the impacts are felt well before they successfully infiltrate. High-volume fraud attacks can overwhelm application flows, incur significant losses due to unnecessary data calls, significantly damage team morale, and more. 

Stopping fraud as early as possible is key to preventing losses. But with customers seeking streamlined onboarding processes—74% will switch to a different solution if a business’s onboarding process is too complicated—fraud professionals are caught in a top-of-funnel tug-of-war between efficiency and effectiveness. 

Looking to stop fraud faster, Addi and Aspiration, two innovative financial services companies, implemented behavioral analytics to solve their top-of-funnel fraud problems. Here are the issues Addi and Aspiration faced—and how behavioral analytics solved them.

Pain Point #1: Tedious, Frustrating Onboarding Processes

Addi struggled to balance fraud prevention and customer experience; they sent every applicant through the same rigid, demanding onboarding process. The process took nearly 7 minutes to complete and required aspiring customers to submit documents, verify their identity with a selfie, or even call Addi’s customer service team. This strenuous process drove good customers away and still allowed sophisticated fraudsters to sneak through.

Solution: Addi implemented NeuroID at the top of its onboarding funnel. By decisioning off NeuroID’s signals early, Addi could reject applicants who displayed risky behavior and fast-track those who didn’t.

Result: Addi can now apply friction only to customers who truly prompt it. Their improved top-of-funnel decisioning cut verification time in half for 60% of their customers, providing good customers with a better experience while effectively eliminating third-party fraud.

By allowing us to gather this information from fraud, you allow us to expand our risk appetite or to increase our funnel conversion. That’s how NeuroID has helped us to expand. So whenever you apply to Addi, sometimes we have enough information and we have enough not red flags to to just say ‘go ahead and get your loan. I don’t need anything from you. Here’s your loan, get on your merry way,” and customers really love that.

-Mauro Jacome, Head of Data Science, Addi

Pain Point #2: Unseen Fraud

Traditional fraud prevention methods are widely embraced, but 25% of businesses lost over $1 million to fraud in 2023—these solutions are still missing part of the fraud prevention picture, and businesses who rely on them are feeling the repercussions. In Aspiration’s case, fraudsters were slipping by their defenses and hurting their customer service and internal overhead. Their fraud team was behind the 8-ball, reacting to attacks after they had occurred and giving fast-evolving fraudsters a leg up. 

Solution: NeuroID added new, unique signals to Aspiration’s fraud stack. Behavioral analytics filled the gaps left by traditional fraud solutions to stop modern fraud tactics, including genAI-powered fraud and next-generation bot attacks.

Result: NeuroID gives Aspiration a new layer of visibility into fraudsters: Aspiration now catches 4x more fraud with 97% accuracy. More importantly, NeuroID shields Aspiration against evolving fraud attacks, proactively protecting them against fraudsters’ next new trick.

If your controls are not catching everything, what’s your behavioral solution? Do you have one? Because for us, that has been one of the major contributors to us capturing our quote-unquote “unknown” fraud population. That’s where I particularly find NeuroID to be a benefit.

-Josh Eurom, Manager of Fraud Strategy, Aspiration

Pain Point #3: Operational Inefficiencies

Relying on outdated fraud prevention tools, Addi and Aspiration allowed fraudsters to work their way downstream, triggering expensive, unnecessary checks that impacted their businesses’ bottom lines. And they weren’t alone: 75% of digital businesses said their manual review costs increased in 2022. Because their current solutions couldn’t be trusted to stop fraud without extensive manual reviews, Addi and Aspiration avoided potentially lucrative growth opportunities due to the risk associated with them.

Solution: By detecting risky behavior, NeuroID accurately spotted fraud earlier, forcing fraudsters out before they triggered expensive checks or landed on a manual reviewer’s desk. 

Result: NeuroID gives Addi and Aspiration higher confidence in their fraud stacks. With reduced operational costs and fewer manual reviews, they’re able to pursue new customers and opportunities that may have been deemed too risky in the past. For Aspiration, that lightens work on their team and allows them to focus their time elsewhere. In Addi’s case, that meant meeting their 20% YoY growth goal.

It really is a very unique position for a fraud team to be like, ‘Bring it,’ you know, ‘Bring on more risks!’ But, we are in that place. That’s the benefit, is that our fraud appetite has increased where we can say, ‘let’s look at how we can maybe take some risks with good customers that before we were a little bit more hesitant to take on just from a potential loss scenario. So let’s expand our horizons because we’ve kind of solved for fraud capture.’

-Josh Eurom, Manager of Fraud Strategy, Aspiration

How Can NeuroID Behavioral Analytics Optimize Your Fraud Stack?

Behavior has supercharged growth for Addi, Aspiration, and other businesses looking to optimize their fraud stacks and protect against modern fraud threats. With younger consumers flocking to faster, seamless digital experiences, the need to improve upon friction-filled, outdated fraud stacks will only become more urgent.

Learn more about Addi and Aspiration’s stories, or chat with our experts about how behavioral analytics can solve your top-of-funnel fraud challenges.

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