Digital banks have disrupted the financial sector by riding the wave of technology. They are capturing traditional banks’ customer base with new and unique banking services thatreinvent the customer experience. To be competitive, digital banks must prioritize transforming the customer experience while also establishing trust, a quality traditional banks have built over centuries. However, they face the dual challenge of preventing fraud and ensuring compliance. The key question is: How can digital banks safeguard their exceptional customer experience from the detrimental effects of fraud? This dilemma often forces them to choose between increasing customer friction through false declines or compromising customer trust due to fraud incidents like data breaches and account takeover. In addition, digital banks face a significant challenge in ensuring both secure and frictionless onboarding processes. Many digital banks rely heavily on technology-driven procedures, minimizing direct human involvement. As a result, digital banks can inadvertently onboard fraudsters without notice. Once approved, a fraudster effectively becomes a legitimate customer due to the one-off process.