When a hacker obtains control of a valid account, it’s known as account takeover fraud or account compromise. Unauthorized users gaining control of another person’s online account without consent, such as a bank account, email account, or social media profile, is known as account takeover fraud (ATO). This article entails everything you need to know about account takeover protection. I also added some tips on how to prevent account takeover. Let’s dive in now!
What Is Account Takeover?
With the help of compromised login credentials, fraudsters can take control of user accounts in an assault known as Account Takeover (ATO). Many cybercriminals obtain a database of user credentials through social engineering, data breaches, or phishing attempts, and then sell those credentials on the dark web. They put these credentials to use by deploying bots to test passwords and usernames on a variety of different travel, retail, financial, e-commerce, and social media sites.
When an attacker eventually compiles a list of validated credentials, they can benefit from selling or misusing the account. Identity theft is one of the consequences of account takeover attacks. Users often don’t rotate their passwords and frequently use the same combination of characters across many services. Account takeover by automated password guessing (also known as “credential stuffing”) or “brute force” attacks is facilitated by bots. Mobile sites, websites, and native mobile application APIs all have verification login pages that can be breached by cybercriminals. Once they have access, fraudsters can commit fraud and account takeover, such as by exploiting the user’s loyalty points.
Account Takeover Attacks: How Do They Operate?
Although the fundamentals of an ATO attack are not particularly complicated, spotting one can be challenging. Let’s examine the fundamental procedures for gaining access to an unwary user’s internet account:
- Obtaining a trove of user credentials is the starting point of any ATO attack. Phishing campaigns and network hacking are common entry points for attackers seeking user credentials. On the dark web, other attackers merely purchase a list of credentials.
- An attacker tests a list of login credentials against websites that they have access to. The typical attack strategy involves a large number of automated bots trying out a number of different forms of validation. Using automated bots to quickly go through a huge number of possible username and password pairs is a simple way for attackers to do brute force and credential stuffing attacks. An automated attack like this has an 8 percent chance of successfully breaking into the accounts it targets.
- By doing bad things with the validated credentials, like taking out money, starting credit lines, buying things, or selling them to other people to use, the attacker can make money once they have a list of them.
- Most users share their login credentials with multiple websites. An attacker who has found a working login and password is likely to try that same combination on other widely used retail, travel, social media, banking, and e-commerce sites in an effort to multiply their gains. This makes each verified credential more profitable for a cybercriminal.
How Account Takeover Fraud Happens
Obtaining a user’s login information is the first step toward successfully hijacking their account. Here is how account takeover fraud happens:
#1. Brute-force attacks
Typically, an automated script is used by the attacker to try various combinations of usernames and passwords across multiple accounts. Attackers have been known to resort to “dictionary attacks,” in which they try to guess passwords by looking up words in a dictionary.
#2. Breach replay attack
It’s not a good idea to reuse passwords across several accounts, yet lots of people do it nonetheless. Every account that has the same username (often an email address) and password is vulnerable to the same data breach that exposed the compromised password.
#3. Man-in-the-middle (MitM) attacks
Attackers can obtain sensitive data, including login passwords, by listening in on user-website communications. This information gives them the ability to take control of their accounts.
#4. Phishing
It is still possible to get someone’s password through old-fashioned credential hacking. Account compromise can occur if adequate safeguards are not in place, such as multifactor authentication (MFA).
#5. Malware attacks
Malware such as keyloggers, stealers, and others can reveal user credentials, allowing attackers to take over victims’ accounts.
#6. Data exfiltration
An attacker can acquire access to a user’s account by stealing their login information (such as their username and password) by unlawful data retrieval, transfer, or copying from a device or server.
#7. Credential stuffing
To acquire unauthorized access, cybercriminals utilize automated systems to sift through data breaches on other websites in search of usernames and passwords.
Factors Increasing the Frequency of Account Takeover Fraud
By allowing them to avoid direct user theft, darknet markets make account takeover fraud a much more tempting target for attackers. Rather than going through the laborious process of breaking passwords, attackers who wish to take direct advantage of their targets can just buy legitimate accounts on darknet markets.
Increased online bank accounts and products not only contribute to the growth of darknet markets but also facilitate theft from their consumers. Targeted users frequently have numerous bank accounts dispersed over numerous websites. Since more and more people now have bank accounts and a digital footprint, the opportunity for ATO fraud has grown.
Detection of Account Takeover Fraud
While it may seem impossible to spot ATO fraud, it is often possible to do so by keeping an eye out for unusual patterns of behavior. Some of the best methods for spotting possible account takeover fraud are as follows:
#1. Keep an eye on emails and other correspondence
It’s imperative to put policies in place that efficiently keep an eye out for questionable activity, such as phishing attempts or requests for private information, in emails, texts, and other forms of communication.
#2. Identify shady IP addresses
Seek out anomalous activity with dubious IP addresses (such as those originating from nations beyond customary access points) and examine data transfers with timestamps. This makes it easier to spot dishonest people trying to hijack an account.
#3. Utilize models for machine learning
Account compromise due to malevolent takeover, phishing, or stolen credentials can be identified with the use of machine learning models, which can then be used to help identify fraudulent online activity.
#4. Make use of AI-based detecting tools
In order to evade isolation, ATO attacks frequently employ fourth-generation bots that imitate human behavior. AI-based detection tools have the potential to successfully recognize these ATO threats.
#5. Identify and block requests from known attackers
Identify and prevent requests from known attackers; detect malicious bots used in ATO attacks. Password stuffing can also be detected via login attempts and prevented.
#6. Identify unidentified devices
The identity of an attacker’s device can be hidden through the use of “device spoofing” techniques. An ATO threat is probably present if your system labels devices as “unknown,” particularly if the ratio is very high.
#7. One device accessing several accounts
An attacker’s activities will probably be associated with a single device if they manage to obtain access to multiple accounts through theft. This can indicate an ATO assault.
You may better identify and stop ATO fraud and safeguard your accounts from illegal access by putting these measures into practice.
How to Prevent Account Takeover Fraud
The necessity to take measures to prevent such expensive attacks has increased as ATO fraud has become an increasingly serious problem for both people and organizations. The following are ways you can prevent account takeover fraud:
#1. Limit the frequency of login attempts
Limits on the number of consecutive failed login attempts per user, device, and IP address should be implemented. The typical conduct of users can serve as a benchmark for determining these restrictions, which will help avoid account takeover. Restrictions on the usage of VPNs, proxies, and other tools are also options.
#2. Use password security guidelines
Make certain that workers create strong, one-of-a-kind passwords for all of their accounts. Use safe services like LastPass, 1Password, or Bitwarden to keep track of a bunch of passwords and make managing them easier.
#3. Early detection
Early detection can lead to the prevention of ATO. If you want to put a stop to ATO, you need to know how long an attack takes and how to deal with the various attack patterns that pop up in the first 18 to 24 months after a breach.
#4. Implement multifactor authentication
Multifactor authentication is an extra layer of account protection that necessitates more than just a password, such as a code texted to a mobile device.
#5. Put compromised accounts on hold
The first action to take in the event of an account compromise is to freeze it. Attackers are hindered in their attempts to get access and undertake operations such as changing passwords.
#6. Make use of CAPTCHA
Fraud detection systems have the option to show a CAPTCHA in place of shutting down an IP after a predetermined number of unsuccessful authentication attempts. After receiving too many requests for authentication from the same IP address, the CAPTCHA may be necessary for a predetermined amount of time.
#7. Keep an eye on accounts for any unusual behavior
It’s critical to keep an eye out for any strange activity on accounts, including erratic transactions, altered account information, and unsuccessful login attempts.
Impact of Account Takeover Attacks
The effects of an ATO on people and businesses can be devastating if the attack is successful. The following are some consequences of account takeover fraud at both levels:
#1. Identity theft
Identity theft occurs when criminals obtain sensitive information such as a victim’s social security number, credit card number, or login credentials. Lower credit scores and significant financial losses may be the result.
#2. Monetary losses
ATO scammers can access other accounts connected to the victim’s account, make unlawful transactions, or transfer money using stolen login credentials. Both people and companies may suffer large financial losses as a result of this.
#3. Behavioral harm
ATO fraud can harm a company’s reputation and cost them money in lost sales and consumer loyalty.
#4. Recharges
ATO attacks may result in chargebacks for fraudulent transactions, which could cost organizations money to dispute and process.
#5. Adverse effect on the user’s experience
ATO attacks have the potential to seriously harm a brand’s reputation as well as its user experience. eCommerce organizations, for example, have a duty to protect user accounts; otherwise, they risk fraudulent transactions, payment fraud, customer mistrust, and a bad reputation for their brand. According to Intellicheck.com, eCommerce accounts are the most frequently attacked, accounting for 61% of ATO attacks.
Recognizing and Stopping Financial Institution Account Takeover Fraud
Because it can immediately result in theft and account breaches, ATO is particularly serious in financial institutions. Organizations can identify early warning signs of fraudulent activity indicative of an account takeover by conducting ongoing monitoring.
Financial institutions will have full visibility into a user’s activities throughout the transaction process thanks to an effective fraud detection system. A system that monitors every bank account activity is the best line of defense because it forces cybercriminals to perform additional tasks, such as creating a payee, before they can steal money.
You can identify patterns of activity that indicate the possibility of account takeover fraud by keeping an eye on every action taken on an account. A fraud detection technique that continuously analyzes behavior can spot hints and trends to determine whether a consumer is under assault, as cybercriminals must accomplish a number of tasks before they can move money from an account. This kind of fraud detection procedure can also keep an eye on danger by using data, such as location.
Read Also: Top Most Common Cyber Security Threats to Take Note Of in 2024
Account Takeover Protection
Here is how account takeover protection works:
#1. Anti-Account takeover measures
As a fraud prevention strategy, account takeover protection intercepts attacks before they can do any damage. Newer methods of protecting against account takeover use machine learning to find and stop key signs of scams.
Key signs of account compromise are regularly studied by machine learning algorithms, which use the data to safeguard consumer accounts. If a user’s attempt at login is thought to be suspect, they are directed through a challenge flow that calls for more authentication.
You can change this extra step of identification, but it usually comes in the form of a one-time password sent by text message, email, or the authenticator app. After completing the task successfully, you can log in. Products like Spectrum aim to prevent account takeover without causing any problems for real users.
#2. Account tracking system
It’s imperative to have a procedure in place to thwart subsequent assaults on compromised accounts. You can examine every activity associated with an account that is thought to be suspect by sandboxing it. If necessary, you can then suspend the account.
#3. Web application firewalls
Although they aid in the security of web servers, web application firewalls (WAFs) are less successful at identifying ATO attacks or setting off alarms. Although the most recent, sophisticated bot attacks mostly avoid and disregard WAFs, their widespread use has given website owners a false sense of security. Modern ATO assaults generally go unnoticed because neither WAFs nor standard website logging are sensitive enough to recognize patterns in the traffic.
#4. Threat information and surveillance
These systems track and examine information from multiple sources, such as publicly available blacklists, security lapses, and questionable online activity, in order to identify possible dangers and compromised accounts. They can assist in stopping unauthorized access attempts and offer notifications in real time.
#4. Tracking account activity and creating user profiles
Solutions that keep an eye on user account activity, including transactions, login history, and account settings modifications, are able to spot odd or suspicious activity. Analyzing past data and user behavior to find trends and identify abnormalities in the process of user profiling.
#5. Training on security awareness and user education
Helping to prevent account takeover fraud is cybersecurity training that teaches users about phishing tactics, typical attack methods, and best security practices. This includes advising users to practice good password hygiene, warning them not to share private information, and explaining how to spot and report suspicious behavior.
#6. IP tracking and anomaly identification
With regard to login attempts, these tools examine the location and behavioral patterns. They are able to spot suspicious activity, such as attempts to log in from strange places or strange login patterns, and set off more security precautions or alarms.
#7. Fingerprinting of devices
With the use of this technology, each device can have its own unique identifier, or “fingerprint,” created by gathering and evaluating device-specific data such as IP address, operating system, browser type, and cookies. Fingerprinting identifies possible account takeover attempts and assists in detecting anomalies such as login attempts from unidentified devices.
#8. Biometrics based on behavior
To determine an individual’s usual behavior, behavioral biometrics solutions examine data such as keystrokes, mouse movements, typing speed, and navigation habits. Any departures from the norm may set off alarms and suggest potential fraud.
It is imperative to acknowledge that the aforementioned tools and solutions have to be employed in conjunction with a comprehensive cybersecurity and data protection strategy, customized to the particular requirements of the entity or individual, and updated on a regular basis to tackle new threats and vulnerabilities.
#9. Homegrown bot management
To stop bots, homegrown solutions like volumetric-based and geo-based identification use signature rules, and policies that have already been set up. However, over time, signature-based detection’s effectiveness has drastically decreased. Blocking traffic due to an unforeseen spike may result in blocking legitimate users as well. Hyper-distributed bot attacks are another challenging issue for signature-based systems to handle.
#10. AI-Powered detection
ATO prevention and detection systems that use AI are able to identify increasingly complex bot assaults and account takeover attempts. ATO efforts frequently employ fourth-generation bots, which are more difficult to detect since they may mimic human behavior. To successfully detect sophisticated ATO efforts and keep an eye out for suspicious activity at a site, advanced AI-based technology is required.
Which Methods Are Applied When Taking Over an Account?
Cybercriminals can utilize an array of strategies to obtain entry into an obliging user’s account. An attacker may use a technique known as password spraying, in which they try a popular default password, like “Password1,” against a large number of accounts if they have a list of usernames for a targeted site but not the passwords. The attacker methodically tries the assumed password against as many usernames as they can until they locate one that works by using the brute force of bot automation.
The attacker might attempt to expand the attack to gain control of the user’s accounts on more websites if they have a working login and password combination for the targeted site. We refer to this tactic as “credential stuffing.” Once more, the attacker will utilize automated brute force attacks to rapidly attempt login credentials on major websites such as e-commerce, banking, and travel, with the aim that some customers have saved their usernames and passwords for several accounts.
Account takeover is simple and highly profitable for fraudsters. Bots are always changing to avoid detection systems, which allows account takeover attacks to succeed and keeps website owners in the dark. By infecting real user devices with malware, bots can imitate human activity and remain hidden within a verified user session.
Who Does Account Takeover Attacks Aim to Target?
Financial services firms were the initial targets of ATO, as is often the case with cyberattacks, as hackers tried to gain access to the money in users’ accounts or establish credit lines in their names.
These days, any company that keeps track of user accounts that could be misused for financial gain is open to attack. This can involve gaining control of travel or e-commerce accounts in order to make unauthorized purchases or use loyalty points. Additionally, it may involve focusing on network logins or email accounts used by businesses in an effort to obtain access to more sensitive data or launch a ransomware attack.
What Is the Purpose of Account Takeover Protection?
Account Takeover Protection keeps an eye out for suspicious activity related to account access, purchases, and point redemptions, allowing you to safeguard your reward schemes and foster client loyalty.
What Does Facility Takeover Fraud Mean?
When a fraudster pretends to be a legitimate customer in order to acquire access to an account or facility, a takeover has occurred. Fraudsters might gain control of any account, including credit card, bank, email, and other service provider accounts.
What Safeguards Are There Against Account Takeover?
Using two-factor authentication is one method of preventing account takeover. The best accounts for this security procedure are those with a high number of unsuccessful login attempts.
How Does an Account Takeover Take Place?
An assault known as “Account Takeover” (ATO) occurs when hackers use usernames and passwords they have obtained to gain control of internet accounts. Usually obtained through social engineering, data breaches, and phishing attempts, cybercriminals buy lists of credentials on the dark web.
Final Thoughts
Account takeover defense is the most accurate way to thwart ATO attacks. The system safeguards digital companies and their users from this expanding danger by combining proactive, real-time, and reactive detection methods.
- PRIVILEGED ACCESS MANAGEMENT: Definition & Best Practices
- Smishing and Phishing: What Is The Difference?
- What to Do If Your Identity Is Stolen: Easy Recovery Guide
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