Account Takeover Fraud
Account Takeover (ATO) fraud is rising. With increased sophistication of social engineering & scams, ATO grew >90% in 2022/23, and is now $13 Billion in the US a year.
ATO
What is ATO?
Account takeover fraud occurs when a fraudster gains unauthorized access to a victim's account, such as a bank account, credit card account, or online account, and takes control of it. The fraudster then uses the account for making unauthorized transactions, changing account settings, or accessing sensitive information.
Why ATO is growing?
Account takeover fraud is growing very fast, this can be contributed to:
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Rise in scams and social engineering sophistication
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Fraudsters use of AI and automation is creating fraud on scale
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Fishing, email hacking, malware, darknet have become an industry
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Lack of an orchestrated ATO prevention controls ecosystem
Prevent ATO
The steps
Account takeover fraud prevention steps should include:
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Device and connection monitoring controls
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Authentication orchestration
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Behavior and profile monitoring controls
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AI/ML based ATO detection models on transaction indicators
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Customer two say communication
What should you do?
To prevent account takeover fraud financial institutions must have the required processes and controls to support the steps above. You should:
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Have a risk assessment to update your controls and process
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Tune models regularly to optimize detection
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Use AI/ML to model user behavior
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Customer education on scams, social engineering and passwords
Going beyond
To be a head of the curve, you should go beyond standard ATO prevention:
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Improve device and identity controls
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Build a customer data driven detection framework
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Leverage AI modeling capabilities to the fraud organization
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Build a holistic unified ATO prevention environment
Want to discuss ATO and hear how we can help? Lets talk!