According to research by the Aite Group, financial institutions are facing a 64% uptick in account takeover attacks than before the pandemic. This number is expected to rise further as the digital ecosystem expands, enlarging the surface area culpable to attack.
Account takeover fraud is one of the most common fraud types, and institutions must be vigilant against it. This article will discuss account takeover fraud, its types, and five ways to protect your business.
Let’s dive in.
What is Account Takeover Fraud?
Account takeover fraud is an attack where hackers compromise a victim’s account using stolen credentials. In this attack, fraudsters can use a variety of tactics to gain illegitimate access to user credentials.
From simpler credential stuffing and phishing scams to much more nuanced spear phishing and Man-in-the-middle attacks, fraudsters have become coordinated, sophisticated, and modern in their approach.
The banking industry is the most commonly attacked industry under the onslaught, followed by other financial institutions. Some hackers also use account takeover to hack into Spotify, Google, Netflix, and other accounts that potentially contain banking information.
What are the Methods Commonly Used in Account Takeover Fraud?
Phishing
According to the Verizon 2021 Data Breach Report, over 85% of data breaches involved the weakest link of the cybersecurity chain, humans.
Simple social engineering and spoofing can compel unsuspecting users to cough up their credentials. 52% of the organizations affected by p ..
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