diff --git a/app/forms/gpo_verify_form.rb b/app/forms/gpo_verify_form.rb
index a9998f72c8d..891ee80c756 100644
--- a/app/forms/gpo_verify_form.rb
+++ b/app/forms/gpo_verify_form.rb
@@ -25,11 +25,9 @@ def submit
         pending_profile&.deactivate(:in_person_verification_pending)
       elsif fraud_review_checker.fraud_check_failed? && threatmetrix_enabled?
         bump_fraud_review_pending_timestamps
+      elsif fraud_review_checker.fraud_check_failed?
+        pending_profile&.activate_after_fraud_review_unnecessary
       else
-        pending_profile&.update!(
-          fraud_review_pending_at: nil,
-          fraud_rejection_at: nil,
-        )
         activate_profile
       end
     else
diff --git a/app/models/profile.rb b/app/models/profile.rb
index 0598fdbf489..0dfb29e91fb 100644
--- a/app/models/profile.rb
+++ b/app/models/profile.rb
@@ -98,6 +98,17 @@ def activate_after_passing_review
     track_fraud_review_adjudication(decision: 'pass') if active?
   end
 
+  def activate_after_fraud_review_unnecessary
+    transaction do
+      update!(
+        fraud_review_pending_at: nil,
+        fraud_rejection_at: nil,
+        fraud_pending_reason: nil,
+      )
+      activate
+    end
+  end
+
   def activate_after_passing_in_person
     transaction do
       update!(
diff --git a/spec/forms/gpo_verify_form_spec.rb b/spec/forms/gpo_verify_form_spec.rb
index ae8618710f1..4e9b69843e7 100644
--- a/spec/forms/gpo_verify_form_spec.rb
+++ b/spec/forms/gpo_verify_form_spec.rb
@@ -13,8 +13,8 @@
   let(:pending_profile) do
     create(
       :profile,
+      :verify_by_mail_pending,
       user: user,
-      gpo_verification_pending_at: 1.day.ago,
       proofing_components: proofing_components,
     )
   end
@@ -151,12 +151,7 @@
 
       context 'ThreatMetrix rejection' do
         let(:pending_profile) do
-          create(
-            :profile,
-            user: user,
-            gpo_verification_pending_at: 1.day.ago,
-            fraud_review_pending_at: 1.day.ago,
-          )
+          create(:profile, :verify_by_mail_pending, :fraud_review_pending, user: user)
         end
 
         let(:threatmetrix_review_status) { 'reject' }
diff --git a/spec/models/profile_spec.rb b/spec/models/profile_spec.rb
index 3450ccedcb7..cd023aefc8d 100644
--- a/spec/models/profile_spec.rb
+++ b/spec/models/profile_spec.rb
@@ -891,6 +891,51 @@
     end
   end
 
+  describe '#activate_after_fraud_review_unnecessary' do
+    it 'activates a profile if fraud review is unnecessary' do
+      profile = create(:profile, :fraud_review_pending, user: user)
+
+      expect(profile.activated_at).to be_nil # to change
+      expect(profile.active).to eq(false) # to change
+      expect(profile.deactivation_reason).to be_nil
+      expect(profile.fraud_review_pending?).to eq(true) # to change
+      expect(profile.gpo_verification_pending_at).to be_nil
+      expect(profile.initiating_service_provider).to be_nil
+      expect(profile.verified_at).to be_nil # to change
+
+      expect(profile).to_not be_active
+      expect(profile.fraud_review_pending_at).to_not be_nil
+      expect(profile.fraud_pending_reason).to_not be_nil
+
+      profile.activate_after_fraud_review_unnecessary
+
+      expect(profile.activated_at).to be_present # changed
+      expect(profile.active).to eq(true) # changed
+      expect(profile.deactivation_reason).to be_nil
+      expect(profile.fraud_review_pending?).to eq(false) # changed
+      expect(profile.gpo_verification_pending_at).to be_nil
+      expect(profile.initiating_service_provider).to be_nil
+      expect(profile.verified_at).to be_present # changed
+
+      expect(profile).to be_active
+      expect(profile.fraud_review_pending_at).to be_nil
+      expect(profile.fraud_pending_reason).to be_nil
+    end
+
+    it 'does not activate a profile if transaction raises an error' do
+      profile = create(:profile, :fraud_review_pending, user: user)
+
+      allow(profile).to receive(:update!).and_raise(RuntimeError)
+
+      suppress(RuntimeError) do
+        profile.activate_after_fraud_review_unnecessary
+      end
+
+      expect(profile.fraud_review_pending_at).to_not eq nil
+      expect(profile).to_not be_active
+    end
+  end
+
   # TODO: does deactivating make sense for a non-active profile? Should we prevent it?
   # TODO: related: should we test against an active profile here?
   describe '#deactivate_for_gpo_verification' do
@@ -993,7 +1038,7 @@
 
     context 'it notifies the user' do
       let(:profile) do
-        profile = user.profiles.create(fraud_review_pending_at: 1.day.ago)
+        profile = create(:profile, :fraud_review_pending, user: user)
         profile.reject_for_fraud(notify_user: true)
         profile
       end
@@ -1013,7 +1058,7 @@
 
     context 'it does not notify the user' do
       let(:profile) do
-        profile = user.profiles.create(fraud_review_pending_at: 1.day.ago)
+        profile = create(:profile, :fraud_review_pending, user: user)
         profile.reject_for_fraud(notify_user: false)
         profile
       end
@@ -1028,11 +1073,7 @@
     context 'when the SP is the IRS' do
       let(:sp) { create(:service_provider, :irs) }
       let(:profile) do
-        user.profiles.create(
-          active: false,
-          fraud_review_pending_at: 1.day.ago,
-          initiating_service_provider: sp,
-        )
+        create(:profile, :fraud_review_pending, active: false, initiating_service_provider: sp)
       end
 
       context 'and notify_user is true' do