In 2023, identity theft and fraud reached significant levels, with various reports highlighting the extensive impact on consumers and businesses. The Federal Trade Commission (FTC) reported that consumers lost more than $10 billion to fraud, marking a 14% increase from the previous year. Identity theft remained a pervasive issue, with nearly 560,000 cases reported in the first half of 2023 alone.

Increasing your online customer base might seem beneficial, but is it always advantageous for your business? Our guide aims to help you identify and understand customers who might pose long-term challenges, commonly referred to as high-risk customers. Financial institutions, such as banks, must adhere to regulations that require thorough customer screening to prevent fraud and money laundering.