Account takeover prevention is key to protecting customer accounts against hijacking, which is one of the fastest growing and most damaging forms of fraud. It costs more than $16 billion a year across all industries and is fueled by bots.
It’s a costly attack that can cause a lot of harm to businesses and consumers alike, affecting everything from bank accounts to credit cards. It’s a risk that’s not going away anytime soon, either.
There are several factors that contribute to account takeover attacks. For starters, passwords are often weak or repeated, making them easy to crack.
In addition, many hackers use automated, phishing-based methods to break into accounts. They can send fake phishing messages to customers, asking them to change their login information or provide other sensitive details.
Proactive Steps for Preventing Account Takeovers: Best Practices for Businesses and Consumers
The result is a significant increase in the number of compromised accounts.
Those affected by an account takeover can find their accounts hacked, their loyalty perks and rewards slashed, and their personal data compromised. This can result in loss of business, reputation damage, and even chargebacks and transaction disputes.
Fraud marketplaces are also fueling account takeover fraud, with bad actors aggregating accounts from multiple websites and reselling them on the dark web. This makes it easier for attackers to target their targets and resell their stolen credentials.
Thankfully, there are several solutions that can help prevent these attacks. These include limiting logins, device tracking and IP blocking. Using them in combination can greatly reduce the chances of an account takeover.