How Prop Firms Detect Multi-Accounting and Identity Fraud
Prop firms don’t just trust screenshots and a name on a form. They use layered checks to catch multi-accounting and identity fraud before they send out payouts. If you think you can slip through with a VPN and a fake name, you’re playing against systems designed to flag you.
Why Prop Firms Care About Multi-Accounting
Multi-accounting destroys the risk model. One trader running a swarm of accounts can hammer size, abuse resets, and farm payouts in ways the rules were never built for. That’s why firms treat it as a direct attack on their business, not a minor rule break.
- It breaks their statistics on pass rates and risk.
- It lets one trader bypass loss limits using multiple accounts.
- It creates chargeback and fraud risk with processors.
If you want to see how firms already defend themselves in other areas, read how they design hidden prop firm rules and traps to plug leaks.
KYC: The First Identity Filter
Most serious prop firms use KYC (Know Your Customer) checks once you hit a payout stage or sometimes even at signup. This is where your government ID, address, and sometimes proof of residence get matched against databases.
| KYC Check | What They Look For |
|---|---|
| ID verification | Real document, not edited or AI generated |
| Address verification | Matches billing, country, and IP region |
| Name checks | Multiple accounts tied to same person |
If your “different” accounts funnel to the same person on paper, KYC connects the dots fast.
IP Tracking and Geo Patterns
IP monitoring is basic but still effective. Firms log the IPs that access accounts, including location and provider. When the same IP keeps hitting multiple accounts that supposedly belong to different people, the system lights up.
- Same IP, multiple names = red flag.
- One account logging in from multiple distant regions in a short time = suspicious.
- IPs known from past banned accounts get watched harder.
VPNs and VPSs don’t magically erase this. Using the exact same VPS provider and IP range across “separate” accounts still creates a pattern.
Device Fingerprinting and Browser Data
Beyond IP, firms use device fingerprinting. This combines browser version, OS, screen size, time zone, and other technical data into a rough device identity. Two “different” traders on two “different” accounts with the same weird fingerprint are not hard to link.
This is often automated and tied into their risk systems, the same way they automate trade copier rule enforcement.
Payment and Billing Trail
Payment processors give firms another data stream. Multiple accounts paid with the same card, same PayPal, same bank, or the same billing address are easy to connect. Even if the email changes, the money trail doesn’t lie.
- Same card → multiple evaluation accounts.
- Refund patterns tied to specific buyers.
- Chargeback history linked to identities.
Trading Behavior and Order Flow Patterns
Trading patterns are another fingerprint. If three accounts keep entering the same markets, same direction, same size, within seconds of each other over and over, that looks less like coincidence and more like one brain or one copier.
- Highly correlated trade timing across accounts.
- Identical scaling behavior and exits.
- Same instruments, same hours, same style.
Firms don’t need to know your strategy in detail. They only need enough overlap to justify digging deeper.
Flagging, Manual Review, and Bans
All this data feeds into internal risk tools. Once an account crosses a risk threshold, it gets flagged. After that, a human can review the case: IDs, trades, IP logs, payments, and past history with the firm.
Outcomes are usually blunt:
- Accounts closed.
- Payouts cancelled.
- Trader banned from the platform.
What Legit Traders Should Take From This
If you’re trading straight, this should not scare you. It should explain why firms ask for documents, why they reject some IDs, and why they sometimes delay payouts. They’re not just being paranoid; they’re defending the business that funds you.
The bottom line: if you try to game the system with fake identities and a web of accounts, you’re up against KYC, logs, and pattern detection built exactly to burn you. Trade clean, understand the rules, and focus your energy on not ending up in the common evaluation mistakes pile instead.