When a cybercriminal takes over a customer’s account, they can make unauthorized transactions that cause financial harm. For example, they can steal money from a bank account or transfer funds to another fraudulent entity. They can also buy goods and services with a compromised credit card, or use loyalty accounts to redeem rewards. They can even sell stolen personal information online to commit additional crime. This is why preventing and detecting account takeover fraud is a top priority for organizations.
Unfortunately, a successful attack can be very difficult to detect. How to detect and prevent Account Takeover (ATO) fraud?can hide behind a positive customer history and mimic normal login behaviors. However, a system that continuously monitors a customer’s behavior and identifies anomalies is key to detecting an account takeover attack.
Spotting the Signs: How to Detect Account Takeover Fraud Early
The first signs of an account takeover are often a sudden spike in chargebacks. This is because fraudsters are reversing transactions that were approved by the customer, including those made using their stolen card or email. This can lead to a loss of both revenue and customers.
Other indications of an attack include unrecognizable purchases or transfers from a bank account or credit card. Fraudsters will also change the email, phone number, or password associated with a customer’s account. These changes occur many times a day. A fraud detection system that evaluates each change holistically can identify the most risky ones, allowing legitimate customers to change their information with minimal hassle while stopping fraudsters in their tracks.