Use Cases

Micro-Deposit Fraud

Arkose Labs protects banks and fintechs from innovative fraud attacks.

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Micro-deposit fraud is an attack strategy that is increasingly affecting financial services and fintech companies. Fraudsters take advantage of micro-deposits issued by online banks, fintechs, and payment companies in the process of account verification. Attackers will create fake accounts at scale to steal the mini deposits (under $1 and as low as $0.02).

While each transfer only costs a few cents, micro-deposit fraud adds up over time causing a plethora of downstream problems such as operational costs dealing with these attacks, increased ACH fees and KYC costs, as well as potential reputational damage. If a customer is a victim of a micro-deposit scam, financial services companies may appear untrustworthy and risk damaging customer relationships.

Arkose Labs for Micro-Deposit Fraud

Arkose Labs is protecting banks and fintechs by eliminating the persistent fake accounts that fuel this fraud, by detecting and challenging activity coming from bots and organized human fraud operations. Its flexible solution can also add protections within the web or mobile application, for example at the “add an account” point, in order to stop malicious activity within these accounts.

New Account Registration

Arkose Labs is highly effective at preventing bad actors and bots from setting up fake new accounts at scale, which is the root of micro-deposit fraud.