What is Account Takeover (ATO) Fraud: How to Protect Yourself

How Does Account Takeover Fraud Take Place

Here are some of the common techniques cybercriminals use in account takeovers:

• Stealing Login Credentials Through Data Breach

Cybercriminals infiltrate the databases of companies to get access to massive amounts of confidential information, including usernames, passwords, email IDs, and other sensitive data. This information is often sold on the dark web at a high price.

These leaked credentials are then used by hackers to access multiple online accounts, as many users tend to reuse the same passwords across various websites.

• Man in the Middle (MitM) Attacks

There are multiple servers present between the user and the website, which acts as an intermediary by connecting the two.

Hackers and cybercriminals try to intercept your traffic while it is on its route to the server and access your credentials, especially if it is not encrypted.

• Malware Attacks

Cybercriminals typically make use of stealers, keyloggers, and other types of malware. This type of spyware infects the user's computer and captures everything the user types, takes screenshots, and more.

• Credential Cracking

It is a trial-and-error approach in which hackers take over online accounts by trying various types of passwords to determine which is correct.

The hacker typically uses an automated script to try a credential across multiple accounts until one works. Moreover, the attacker tries dictionary terms and common passwords to guess the correct one.

• Phishing

It is one of the traditional ways of taking over accounts. In this, the cybercriminal tricks the user into providing confidential information via. phone calls, chats, emails, SMS, malicious mobile apps, and more.

How Can You Protect Yourself from an Account Takeover Fraud

There are several ways in which you can protect yourself from such costly account takeover frauds. Some of these are as follows:

• Enable Multi-Factor Authentication 

Enabling multi-factor authentication provides an additional layer of security by requiring something more than just a password. It can be an OTP sent to your registered mobile number, fingerprint, etc.

• AI Detection

It is another brilliant way of detecting sophisticated ATO attempts and bot attacks. By integrating AI-based ATO protection software, you can easily identify and prevent such attempts while monitoring a site for suspicious activities.

• Set Limits on Login Attempts

There are some organisations that allow users to set limits on login attempts based on their IP address, username, and device. It can help prevent account takeover fraud by freezing the login access to an account for a specific timeframe.

• Monitor Accounts for Suspicious Activity 

You must regularly monitor the confidential online accounts for any suspicious behaviour, such as changes in account information, failed login attempts, or any unusual transactions.

• Enabling the Web Application Firewall

Another effective way to protect yourself from account takeover fraud is by enabling the web application firewall (WAF). The WAF is capable of detecting and blocking malicious traffic. It typically safeguards web applications by filtering and monitoring the HTTP traffic.

The Bottomline 

To conclude, account takeover fraud refers to the taking over of ownership access to someone else’s online account without their permission. These are carried out by hackers and cybercriminals in various ways, such as phishing, malware attacks, data breaches, etc. 

However, there are several ways in which you can protect yourself from such account takeover frauds. It includes enabling multi-factor authentication, setting limits on login attempts, regular monitoring, integrating AI-based ATO detection software, and more.