Despite the existence of high-security standards for all major payment gateways, hackers and fraudsters are still successful in getting their hands-on user credentials and financial information. In addition, financial institutions are struggling to identify hacking attempts at an early stage, so, in many cases, they do not realize an account takeover is taking place.
Account takeover attacks may take place in many ways. Usually, fraudsters steal account credentials by either infecting a computer with malware or using 'social engineering,' i.e., obtaining confidential information through fraudulent means. Hackers can then use this information to take over existing accounts or set up new ones on behalf of victims and make fraudulent transactions.
A sure indicator of an account takeover situation occurs when you get more frequent chargebacks than usual, or one or multiple fraudulent transactions charges that were not authorized. You are a sure bet to be an account takeover fraud victim if you see a high number of failed logins on your account or a very unusual amount of usage on your credit or debit card.
Your bank or financial institution may send you an email or call you to inform you of the unauthorized transactions and/or change of bank account details. If you receive an email or phone call from your bank informing you that your account has been accessed by an unauthorized party, this is a strong indication of potential account takeover fraud.
Being pro-active in account takeover (ATO) detection can save you, your company from significant revenue loss, brand reputation loss, and damage to key business relationships. Utilize the signs of a possible ATO to proactively avoid them. It is crucial to start planning and implementing your ATO detection strategy now before it is too late.
Businesses and financial firms to protect themselves and their customers from fraud often employ complex security mechanisms to make account takeover attempts harder, if not impossible. The requirements for an attempt to be successful include a quick sequence of events, unknown factors, and a combination of steps, among other methods. There are multiple methods, including limiting login attempts, a comprehensive authentication system, IP blacklisting, configuration of a web application firewall, and implementing CAPTCHAs.
There are also many crucial steps that consumers can take to avoid having their accounts taken over by hackers and fraudsters. For instance, it is extremely important that users take security measures, such as using complex and unique passwords and changing them frequently.
One very effective way to prevent account takeover attacks is to activate multi-factor authentication on online accounts. In addition, users should enable the bank to send them notifications every time they try to access their accounts from a new device, such as a smartphone, tablet, or computer. Another key precautionary measure is to install security software on all devices and update them regularly.
At this point, it is crucial to highlight the importance of exercising common sense and being vigilant when online.
At ATOPrevention, we empower companies and financial firms to protect themselves and their customers from account takeover by protecting against hackers and fraudsters and help them leverage the sophisticated capabilities of today’s anti-ATO systems.