Method and system for identifying fraudulent account activity

A method of assessing and managing risk associated with a transactional banking account, comprising:

• collecting information and an initial deposit from a customer;
• applying an algorithm to analyze the information and initial deposit to assign a risk level to the customer based on the nature of the information and the initial deposit;
• establishing a new monitored transactional bank account for customers having higher risk levels;
• and
• monitoring the monitored transactional account for a period of time after the account is established, wherein the monitoring is terminated at the end of the time period if no further risk factors appear within the account, wherein the account is flagged for closure if further risk factors appear within the account.

A system of assessing and managing risk associated with a transactional banking account, comprising:

• a computer system at a bank service provider having a processor and a data storage means;
• a user interface in electronic communication with said computer system for inputting information and an initial deposit collected a customer for the establishment of an account record;
• and
• an algorithm that operates on said processor that analyzes the information and initial deposit to assign a risk level to the customer based on the nature of the information and the initial deposit;
• wherein said bank service provider establishes a new monitored transactional bank account for customers having higher risk levels, wherein the account record is monitored for a period of time after the account is established, wherein the monitoring is terminated at the end of the time period if no further risk factors appear within the account, wherein the account is flagged for closure if further risk factors appear within the account.