Opening a bank account online has never been easier. For customers, it often takes less than a minute. For fraudsters, however, the same digital onboarding processes have become attractive targets.

«Criminals no longer attack one account at a time. They use bots to probe digital onboarding systems at scale, looking for weaknesses they can exploit automatically», Chris van Straeten told finews.

Artificial intelligence is accelerating that trend.

Deepfakes Are Raising the Stakes

AI-generated identity documents, manipulated selfies and synthetic videos are becoming increasingly difficult to detect.

«AI makes financial crime easier—but it also gives us better tools to stop it.»

According to van Straeten, sophisticated fraud attempts can now fool even experienced human reviewers.

«AI makes financial crime easier—but it also gives us better tools to stop it.»

The result is an escalating technology race between fraudsters and financial institutions.

The First Minute Matters Most

For Fourthline, the most important moment in the customer journey is the initial onboarding process.

If a fraudulent customer successfully opens an account, banks are largely left with damage control rather than prevention.

To reduce that risk, Fourthline combines more than 200 automated checks during the onboarding process.

Beyond verifying identity documents, the platform analyzes device characteristics, language settings, geolocation, VPN usage and biometric information to build a comprehensive risk profile before an account is approved.

KYC Should Never Be a One-Time Exercise

Van Straeten argues that many financial institutions still treat Know Your Customer (KYC) as a one-off compliance requirement.

Instead, he believes customer verification should continue throughout the entire relationship.

Fourthline refers to this approach as «Lifecycle KYC».

Sanctions screening, politically exposed person (PEP) monitoring, adverse media checks and behavioral changes should all trigger ongoing reviews rather than waiting for periodic compliance cycles.

Equally important, he says, is linking customer onboarding with transaction monitoring.

«Onboarding and transaction monitoring are two sides of the same coin.»

Digital Banks Are Maturing

Speed has long been one of the biggest competitive advantages of digital banks.

But as fintechs grow, regulators increasingly expect them to meet the same compliance standards as traditional institutions.

«As digital banks mature, they inevitably move closer to the control frameworks of traditional banks.»

While incumbent banks often struggle with legacy technology, digital-native banks benefit from modern infrastructure that allows them to deploy new compliance tools much more quickly.

«As digital banks mature, they inevitably move closer to the control frameworks of traditional banks.»

Europe Is Moving Toward a Common AML Rulebook

The regulatory landscape is also changing.

Beginning in 2027, the European Union’s new Anti-Money Laundering Regulation (AMLR) will introduce a more harmonized framework for customer identification across member states.

National differences in onboarding requirements will gradually disappear, supported by electronic identity solutions and the future European Digital Identity Wallet.

While harmonization should simplify cross-border banking, van Straeten notes that standardized processes could also create new opportunities for organized fraud if institutions fail to keep pace technologically.

An Arms Race That Will Continue

Van Straeten does not expect AI-driven fraud to slow down.

If anything, criminal techniques will continue to evolve.

The encouraging news, he says, is that the same technology is strengthening banks’ defenses.

«Both sides now have access to AI. The difference will come down to who innovates faster.»

Fourthline works with law enforcement agencies, including Europol, to identify emerging fraud patterns and adapt detection models as criminal methods evolve.

«Both sides now have access to AI. The difference will come down to who innovates faster.»