What is Account Takeover?
Account takeover is a type of fraud where a criminal gains unauthorized access to a victim’s account, such as a bank account, email account, or social media account, and uses it for fraudulent activities.
How Account Takeover Occurs?
- Phishing Attacks
- Credential Theft: Fraudsters trick individuals into providing login credentials through deceptive emails or messages.
- Data Breaches
- Compromised Data: Stolen login information from data breaches is used to access accounts.
- Malware
- Keylogging and Spyware: Malware installed on a victim’s device captures login credentials.
- Social Engineering
- Manipulative Tactics: Fraudsters use manipulation techniques to convince victims to divulge account information.
- Password Reuse
- Credential Stuffing: Using stolen credentials from one breach to access accounts where the same passwords are used.
What are the Impacts of Account Takeover on Businesses?
- Financial losses
- Unauthorized Transactions: Direct financial losses from fraudulent transactions made using compromised accounts.
- Customer Trust
- Erosion of Trust: Loss of customer trust due to perceived inadequate security measures.
- Operational disruption
- Increased Support Costs: Higher costs for customer support to resolve compromised accounts and mitigate damages.
- Legal and Regulatory Consequences
- Compliance Issues: Potential fines and legal repercussions for failing to protect customer accounts adequately.
- Brand Reputation
- Negative Publicity: Damage to the company’s brand image due to high-profile account takeover incidents.
