Most people assume that using a simple password such as 12345678 or password is enough to protect their accounts from being taken over by unauthorized criminals wanting to steal data. But the recent alarming rise of account takeover cases shows otherwise. Criminals are finding new ways to breach accounts in a short amount of time. Even your throwaway accounts on social media may contain information that can be fatal when breached and misused. Read this article to find out how account takeover frauds work and what you can do to protect your data.
A Brief Introduction to Account Takeover Fraud
Account takeover fraud (ATO) is a type of cybercrime that occurs when criminals gain access to their victim’s online account. They then use the information they have gathered, such as personal information and funds, to make fraudulent transactions or even commit identity theft. Various accounts such as social media, e-commerce, online banking, email, and even gaming accounts, are vulnerable to account takeovers.
There are many tactics that cybercriminals can use to take over accounts. According to anti-chargeback firm Chargebacks911, these can include but are not limited to:
- Brute force attacks, where attackers use automated scripts to guess password combinations until the account can be logged in.
- Phishing is where attackers send emails or text messages that appear to be from a legitimate source, such as a bank or credit card company. The emails or text messages often contain a link that, when clicked, will take the victim to a fake website that looks like the company’s genuine website. Once the victim enters their personal information on the fake website, the criminals can steal it.
- Malware is where attackers use software that can be installed on a victim’s computer without their knowledge. Once the malware is installed, it can give the criminals access to the victim’s computer and online accounts.
- Scams, where attackers pose as tech support or other customer service personnel to convince victims to share their account credentials.
- Man-in-the-middle attacks. This is where attackers intercept a communication between two parties and relay it to the other party, while also being able to read and modify the communication.
There are also many ways you can identify if your account was a target of an ATO attack. Some examples are always being aware of suspicious activities in your account, such as multiple failed login attempts, changes in account details, and changes in login behavior. If you suspect that your account might be breached, you should immediately change your password and contact authorities/customer service.
According to Kaspersky, account takeover fraud accounted for 54% of fraud-related events in 2020, a number that is far larger than the other types of fraud, such as money laundering or new account fraud. Additionally, Sift reports that cases of ATO fraud increased by 307% from 2019 to 2021. That data means that ATO is a common type of fraud. People need to be aware of this fraud and the tactics used to carry it out.
How Can We Prevent ATOs?
Account takeover fraud (ATO) can be prevented by using the appropriate tools and tactics. Aside from being aware of the latest fraud trends, businesses can take the first approach to secure customer data by:
- Requiring customers to enable two-factor authentication: Two-factor authentication (2FA) is a security process in which users must verify their identity in two different ways, typically by entering a password and then providing a code sent to their mobile phone. This helps to ensure that only authorized users can access accounts, even if their passwords are compromised.
- Educating customers about ATO risks: Businesses should educate their customers about the disadvantages of ATO fraud and how they can protect themselves. This includes providing information about how to create strong passwords, how to be careful about clicking on links in emails, and how to keep their software up to date.
- Investing in fraud detection and prevention tools: Businesses can invest in fraud detection and prevention tools to help identify and prevent ATO attacks. These tools can use a variety of methods to detect suspicious activity, such as monitoring for unusual login attempts or tracking changes in account behavior.
As a customer, it is crucial to protect your data from ATO fraud. You can do this by:
- Using a strong password: Your password should be at least 12 characters long and include a mix of upper and lowercase letters, numbers, and symbols.
- Enabling two-factor authentication: If it’s available, enable two-factor authentication for your online accounts. Two-factor authentication will add an extra layer of security by requiring you to enter a code from your phone in addition to your password when you log in.
- Be careful about clicking on links that seem suspicious: Do not click on links in emails or text messages that you are not expecting. If you are not sure if a link is legitimate, hover over it to see the full URL. If the URL looks suspicious, do not click on it.
- Keeping software up to date: Software updates often include security patches that can help to protect your computer from malware. Make sure to install software updates as soon as they are available.
- Be more careful of the information you share online: Do not share your personal information, such as your Social Security number or bank account number, with anyone you do not know and trust.
- Being aware of the latest fraud trends: Keep up-to-date on the latest fraud trends so that you can be more aware of the risks and how to protect yourself.
A report from the 2019 Global E-commerce Fraud Management in Southeast Asia states that Indonesia has the highest number of e-commerce fraud rates compared to other Southeast Asian countries, followed by Thailand and Vietnam. According to the same source, these frauds commonly stemmed from phishing and account takeovers. This highlights the importance of taking steps to make sure that your account is secure.
Awareness is the Key to Security
ATO fraud attempts are predicted to grow over the next few years. This is why being aware of data protection is crucial. ASLI RI provides you with the necessary tools to protect your business from fraud. We provide a wide range of systems that can be catered according to your business security needs.
ASLI RI’s Authentication Solution is the right choice to protect your business from ever-increasing account takeover attempts. Our solution accurately and seamlessly filters out instances of identity manipulation, providing you with peace of mind knowing that your data is secure. Our Authentication Solution offers advanced face recognition and fingerprint verification that can be customized based on your specific needs. This means that you can tailor our solution to your specific security requirements, giving you the highest level of protection possible. Visit www.asliri.id to learn more about our products.
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Last modified: October 9, 2023
