Account Takeover Fraud

Understanding the Threat and Protecting Your Business

We conduct most of our business through emails, and yet they remain one of the weakest links in cybercrimes as they contain a lot of sensitive data. This makes them vulnerable to fraudulent account takeovers, resulting in fraud and a loss of reputation.

What is Account Takeover Fraud?

Account Takeover Fraud is not just limited to emails but also social media accounts, e-commerce websites, bank or stock portals, deal rooms, or any other corporate intranets/extranets.

When cybercriminals gain unauthorized access, they can use the confidential data of individuals or businesses for illegal purposes like stealing money, take over or take down businesses, or destroying reputations. 

How Do Criminals Get Your Account Information?

Cybercriminals use several strategies to get into individuals’/corporates’ accounts and profiles to acquire confidential information. It’s critical to have a solid understanding of these strategies to shore up your defenses.

1. Phishing Attacks: Cybercriminals pose as trustworthy organizations in emails or messages to lure the targets to fake websites (looking very similar to the real ones) and enter their credentials to log in. Phishing also involves tricking the recipients into downloading malware; for instance, an email can contain a phrase that reads, "Click here to download your system update." When someone clicks that malicious link, it takes them to a fake website that steals their login credentials. 
2. Data Breaches: Essentially, a security incident in which unauthorized parties gain access to sensitive personal or financial information, such as social security numbers, bank account numbers or PHI. Data breaches prove deadly and can be caused by plain human error or can be the job of a malicious insider or external hacker.
3. Credential Stuffing: They use stolen usernames and password combinations from other data breaches. This information is then tested across multiple platforms. People who reuse credentials are at risk of being exploited.
4. Social Engineering: Through psychological manipulation and deceit, hackers trick people into revealing their sensitive data like passwords. These Social Engineering Attacks can occur over the phone, via email, or face-to-face. 

What Do Fraudsters Do With Stolen Accounts?

Cybercriminals can use sensitive information to commit financial frauds like transferring the money to their own accounts or make unauthorized purchases. 

They can also misuse private data to engage in identity theft, or use the data to conduct bigger scams like phishing or ransomware campaigns.

Cybercriminals engage in other nefarious activities. They may use stolen accounts to send spam emails or phishing messages to the victim's contacts. This can spread malware, gather additional account credentials, or perform man-in-the-middle attacks. Furthermore, they may sell these accounts to other fraudsters who can exploit them or use the data for other illegal activities.

Techniques for Fraudulent Account Takeovers 

1. Brute-Force Attacks: Advanced automated tools can guess user names and passwords automatically. This usually works on simple or weak passwords that can be easily guessed.
2. Credential Phishing: Fraudsters create convincing fake websites and emails. These fake websites and emails prompt users to enter their account credentials. Unknowingly, the users hand over their credentials to fraudsters.
3. SIM Swapping: A fraud scheme using social engineering tactics. Cybercriminals impersonate the victim after gathering intel on them via phishing or other tactics. They then contact the telecom carrier to activate the victim’s SIM card on another device, citing the excuse that the card has been damaged or stolen. Once the SIM is activated, cybercriminals use multi-factor authentication methods to take over the target’s accounts.
4. Keylogging: Spyware or malware that has been installed on a victim's device can track keystrokes, giving thieves access to private data, including account credentials. 

How to Detect Account Takeover Fraud?

Early detection of account takeover fraud is essential to reducing possible harm. Keep a close eye on your accounts to spot any strange transactions, modifications to your personal data, or efforts at unauthorized access. Keep an eye out for any questionable conduct and report it right away. 

1. Receiving password reset notifications for accounts you didn't request could mean someone is trying to access your account without permission. Be aware of this possibility.
2. Accounts may become inaccessible. This can be noticed when you are unable to log in, or when your login credentials no longer work. This could mean that your account has been compromised.

Additionally, check if your contacts receive spam emails or messages from your account. It's a strong indication of unauthorized access. Keep an eye on any modifications to your account settings, such as changes in contact information, security questions, or linked devices. These alterations could signal an account takeover.

The Warning Signs of Account Takeover Fraud

Sudden, unexplained transactions, withdrawals, or purchases on your accounts can indicate that fraudsters have gained control. Be aware of unfamiliar login locations, devices, IP addresses, or notifications about multiple failed login attempts or account lockouts. These may indicate a malicious takeover attempt.

One more essential thing to check for is whether important emails have disappeared from your account without your knowledge.

How Can You Protect Yourself From Account Takeover?

Here are some strategies you must adopt.

1. Robust & Distinct Passwords: Use strong passwords with capital and lowercase letters, numerals, and special characters. You should also avoid using similar passwords for every account. 
2. Two-Factor Authentication (2FA): Turn it on whenever you can to add an extra layer of security. You will receive a special code on your phone or email so you can authenticate the activity on your accounts and act immediately. 
3. Software patches: Update the software installed on your apps and devices with the latest security patches frequently to fix vulnerabilities. 
4. Avoid Falling for Phishing Attempts: When opening attachments or clicking links in emails, especially from senders you are not acquainted with, proceed with caution. Requests for account credentials or personal information should be avoided. 
5. Educate Both Yourself and Your Staff: Keep yourself updated with the most recent cybersecurity and phishing tactics. Educate yourself and your employees on how to identify and avoid potential threats.
6. Adopt Three Rs: By adopting response, readiness, and resilience, it is possible to handle cybercrimes like account takeover fraud. 

We anticipate AI to eliminate repetitive tasks in this age of technology and automation. You will be able to concentrate on becoming an authority in your field as a result. 

Installing reputable email security software is advised to identify and stop fraudsters from accessing your accounts. You must also keep up with the latest developments in cybersecurity tools. Choose one that provides protection, prevention, and pre-emption of potential threats. Tools with real-time alerts and high-end fraud detection are best suited for maintaining the e-security of your business.