Account takeover fraud is an alarmingly common type of online crime, which can “affect businesses and individuals alike,” according to an update from SEON.
This form of attack tends “to occur when a fraudster poses as an established, genuine client of a business, or as an employee, and gains control of an account under a false pretense.”
Once this has occurred, the fraudster is often able “to leverage this access to carry out unauthorized transactions, or to steal sensitive information.” In the US alone, “around 24 million households have fallen victim to this form of fraud.”
There are a myriad of reasons why account takeover fraud is so “prevalent right now.”
As SEON’s report finds, social media is “one of the driving forces behind the issue. Currently, more than half of all account takeovers relate to a social media account.” Sadly, once a fraudster has “gained access to an account like this, they can often use the access to further exploit other accounts.” To this end, a study has “found that 60% of account takeover victims use the same password for multiple online accounts. ”
In publishing its report, SEON wants “to bring attention to this crucial issue, which may currently be being overlooked by businesses and individuals.”
That’s why the company has “included several important steps that both businesses, and everyday internet users, can take to mitigate the risks of the issue.” Alongside encouraging complex, unique, and varied passwords across online accounts, the report “explains the importance of things like multi-factor authentication systems in stopping the problem.”
PJ Rohall, Head of Fraud Strategy & Education at SEON commented:
“Whether you’re a business, or a consumer, the risks of falling victim to an account takeover attack has never been higher. It’s now incredibly easy for fraudsters to get their hands on sensitive information, which can either be personally harvested, or purchased on the dark web following a data leak. Sadly, this is often all fraudsters need to launch account takeover attacks on businesses, or individuals.”
PJ Rohall added:
“When a customer experiences account takeover fraud, they often blame the merchant for the breach, even if it was the customer who unknowingly let the fraudster in. This impacts consumer trust and brand image – and can wreak havoc on customer loyalty. At SEON, we want to raise further awareness around this important issue, and will continue to educate audiences about the risks through our educational guides. In doing so, we hope to give businesses and customers more confidence against account takeover attacks.”
To read SEON’s new report, check here.