Learn About Account Takeover Fraud Detection
Learn about account takeover fraud detection
Learn about account takeover fraud detection account takeover fraud occurs when criminals gain access to a victim’s login credentials to steal personal information and money. This information can be used to scam contacts, drain bank accounts, or commit credit card fraud and unauthorized shopping from compromised ecommerce accounts.
Criminals can use stolen information to take control of a user’s account via phishing, malware, or brute force attacks. Whether the attack originates from one of many data breaches or by using software that harvests usernames, passwords, email addresses, and credit card numbers, the result is the same – financial losses for both the business and its customers.
Beyond the Scams: Navigating the Top Fraud Detection Companies for Business Protection
These digital fraud losses can cause significant damage to a business. Not only does the data breach hurt a brand’s reputation with clients, but chargeback and inventory costs can also eat into profits. These costs, combined with the public disclosure of a data breach, can lead to long-term damage and loss of customer loyalty.
The best approach to combat account takeover fraud is continuous monitoring. This allows a business to identify patterns and clues of suspicious activity. For example, when a large number of login attempts are made from an unfamiliar location or there is an unusual spike in login traffic during off-peak times, this may indicate a possible ATO attack. A fraud detection solution that continuously evaluates risky user behavior can quickly detect this type of activity and trigger additional security measures or alerts.