Account Takeover

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?

1. Phishing Attacks
   • Credential Theft: Fraudsters trick individuals into providing login credentials through deceptive emails or messages.
2. Data Breaches
   • Compromised Data: Stolen login information from data breaches is used to access accounts.
3. Malware
   • Keylogging and Spyware: Malware installed on a victim’s device captures login credentials.
4. Social Engineering
   • Manipulative Tactics: Fraudsters use manipulation techniques to convince victims to divulge account information.
5. 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?

1. Financial losses
   • Unauthorized Transactions: Direct financial losses from fraudulent transactions made using compromised accounts.
2. Customer Trust
   • Erosion of Trust: Loss of customer trust due to perceived inadequate security measures.
3. Operational disruption
   • Increased Support Costs: Higher costs for customer support to resolve compromised accounts and mitigate damages.
4. Legal and Regulatory Consequences
   • Compliance Issues: Potential fines and legal repercussions for failing to protect customer accounts adequately.
5. Brand Reputation
   • Negative Publicity: Damage to the company’s brand image due to high-profile account takeover incidents.