Incognia Study Finds 81% of Financial Institutions Report Rising Mule Account Fraud as Identity Attacks Shift Beyond Onboarding

Survey of 500+ fraud and AML professionals reveals detection gaps and growing investment in continuous identity verification

SAN JOSE, Calif., April 29, 2026 /PRNewswire/ -- Incognia, the leader in cross-device risk intelligence, today released its 2026 State of Mule Account Handover Report, finding that mule account fraud is increasing across financial institutions in the United States and Europe. The results point to a structural gap: accounts that pass initial verification can change hands without triggering any new compliance requirement.

In the survey of more than 500 fraud prevention, risk, and compliance professionals, 81% reported an increase in mule-related activity over the past year. Mule account fraud occurs when a legitimate account is used by unauthorized parties to move or conceal funds, often after it has already been verified.

More than eight in 10 respondents report that mule activity is detected reactively, rather than prevented before suspicious transactions occur. Over half say account handover fraud, where control of a verified account shifts to someone else without authorization, is more difficult to detect than other types of fraud.

"The accounts being used for mule fraud today are often ones that passed every check at opening. The threat has moved to what happens after, and most institutions aren't equipped to see it," said André Ferraz, CEO and Co-Founder of Incognia. "Verifying who opens an account is table stakes - what matters now is knowing who's operating it six months later. That's the gap Incognia is built to close."

The findings highlight a structural challenge for financial institutions - accounts that pass initial verification can later change hands without triggering new compliance requirements, creating opportunities for organized fraud networks. Companies must balance fraud prevention, regulatory expectations, and customer experience in an increasingly complex threat environment.

According to the study, 78% of institutions have made improving mule account detection a high or top priority over the next 12 months, with many increasing investment in artificial intelligence and advanced analytics.

"It's no longer enough to verify identity at a single point in time - institutions need continuous signals that confirm who is really behind an account as behavior changes, devices change, and risks evolve," added Ferraz.

Incognia continuously analyzes location behavior and device signals throughout an account's life, not just at opening. When a verified account starts behaving like it's being operated by a different person, Incognia flags it before fraudulent transactions occur, with minimal friction for legitimate users.

Incognia supports global companies across mobility, marketplaces, and financial services, helping prevent fraud while reducing friction for legitimate users. For more information and to download the full report, click here.

About the Study

The research surveyed more than 500 fraud prevention, risk management, and AML professionals across financial institutions in the United States and Europe, examining trends in mule account activity, detection strategies, regulatory exposure, and investment priorities.

About Incognia
Incognia provides cross-device risk intelligence for companies that rely on trusted digital interactions. Its technology blends location behavior, device integrity, and behavioral analysis to create a risk signal that cannot be faked at scale and shows whether a user is trusted or risky. With real-time assessments and actionable data, Incognia helps organizations stop repeat and large-scale fraud while reducing friction for legitimate users.

SOURCE Incognia