The Growing Threat of Account Takeover Fraud: How Footprint Can Help

The Growing Threat of Account Takeover Fraud

Account takeover fraud is a type of cybercrime where a malicious third party gains access to an online account, typically by stealing or buying login credentials on the dark web. This can happen to anyone, from individuals to businesses and financial institutions.

Once the fraudster has access to the account, they can make unauthorized transactions, steal sensitive information, or even sell the account credentials to other cybercriminals.

Account takeover fraud is often difficult to detect because fraudsters can mimic normal login behavior and leverage the customer's positive history. However, there are some red flags that can indicate account takeover fraud, such as sudden password change requests, multiple login attempts, and changes to account information.

Footprint's User Behavior and Device Insights can help detect these anomalies, providing an additional layer of security against account takeover fraud. Learn more about account takeover fraud.

Preventing Account Takeover Fraud

To prevent account takeover fraud, businesses and individuals can take several steps:

1. Practice good password hygiene, such as changing passwords regularly and using a password manager encryption service. Footprint's Passkeys offer a more secure alternative to traditional passwords, using a cryptographic public key bound to the user's verified identity.


2. Alert customers if their username or password has been compromised in a data breach. Footprint's Duplicate & Synthetic Fraud detection can help identify and prevent the use of compromised credentials. Learn more about synthetic identity theft.


3. Offer customers the option to be contacted before their credit limit is increased. Footprint's Onboarding Controls enable businesses to require attestable user experiences, collect additional forms of identification, and perform enhanced device checks to ensure the human behind the computer is who they claim to be. This is an important part of the KYC onboarding process and Know Your Customer (KYC).


4. Require customers to request a credit limit increase in a branch or over the phone rather than online. Footprint's App Clips and Instant Apps provide a secure and user-friendly way to verify user identities and authorize transactions.


5. Recommend customers turn on multi-factor identification (MFA). Footprint's Triple Binding Identity approach verifies the person behind the screen, their device, and their phone number, providing a more robust and accurate identity verification process. This is a key component of effective identity verification software and can help prevent account takeover fraud.


6. Send an email and/or text when a change has been made to an account. Footprint's Vaulting and Onboarding enable seamless integration of onboarding with vaulting, ensuring secure storage of sensitive user data and enabling businesses to access it with a single identifier (fp_id).


7. Include fraud alerts at relevant points in the customer journey. Footprint's automated suspicious behavioral analysis detects anomalous behavior, such as typing hesitancy, copy-paste for sensitive fields, devices on bad reputation networks, and more.


8. Use methods, such as CAPTCHA, to spot and block bots. Footprint's Device Attestation utilizes Apple and Google's device attestation frameworks to detect and prevent fraud, raising the cost of fraud for adversaries.


9. Use fraud detection tools to look for patterns and identify risks in real-time. Footprint's platform offers a comprehensive suite of tools and innovative approaches to detect and prevent account takeover fraud.


10. Utilize artificial intelligence to compare a customer's typical behavior with current behavior to identify and block suspicious activity. Footprint's technical innovations and unique approaches provide a more accurate and effective way to detect and prevent account takeover fraud.

Additional Measures to Prevent Account Takeover Fraud

In addition to these steps, businesses can also use biometrics, such as facial recognition and fingerprint scanning, to provide an additional layer of security and prevent account takeover fraud. Footprint's platform offers a more comprehensive and secure solution to prevent account takeover fraud, with its robust suite of tools and innovative approaches.

The Scope of the Problem

Account takeover fraud is a significant threat that requires proactive measures to prevent and detect. Some key statistics related to account takeover fraud include:

• Estimated losses related to account takeover fraud in the US alone amount to $11 billion, representing a 90 percent increase from previous estimates.


• 39 percent of respondents in a global compliance survey said the type of fraud they were most concerned about was credit/debit card fraud, closely followed by identity theft (36 percent). Learn more about the difference between account takeover and identity theft.


• 64 percent of US consumers who experienced identity theft also experienced account takeover fraud.


• 22 percent of people in the US have been victims of account takeover fraud, with phishing and social engineering among the most common methods.

By understanding the risks and taking steps to protect themselves, businesses and individuals can reduce the likelihood of falling victim to this type of cybercrime. With Footprint, businesses can stay ahead of the threats and protect their customers and reputation.

Frequently Asked Questions

What is account takeover fraud?

Account takeover fraud is a type of cybercrime where a malicious third party gains access to an online account, typically by stealing or buying login credentials on the dark web. Learn more about account takeover fraud and how to prevent it.

How does account takeover fraud happen?

Account takeover fraud can happen to anyone, from individuals to businesses and financial institutions. It often occurs when a malicious third party steals or buys login credentials on the dark web, then uses those credentials to gain access to an online account. This can also occur through social engineering attacks or by exploiting weak access controls.

What are some red flags that can indicate account takeover fraud?

Some red flags that can indicate account takeover fraud include sudden password change requests, multiple login attempts, and changes to account information. Additionally, fraudsters may mimic normal login behavior and leverage the customer's positive history to avoid detection. In such cases, knowledge-based authentication (KBA) or multi-factor identification (MFA) can help prevent unauthorized access.

How can businesses and individuals prevent account takeover fraud?

To prevent account takeover fraud, businesses and individuals can take several steps, including practicing good password hygiene, alerting customers if their username or password has been compromised in a data breach, offering customers the option to be contacted before their credit limit is increased, requiring customers to request a credit limit increase in a branch or over the phone, recommending customers turn on multi-factor identification (MFA), sending an email and/or text when a change has been made to an account, and using methods such as CAPTCHA to spot and block bots. Implementing data encryption can also help protect sensitive information.

What additional measures can businesses take to prevent account takeover fraud?

In addition to the steps mentioned above, businesses can also use biometrics, such as facial recognition and fingerprint scanning, to provide an additional layer of security and prevent account takeover fraud. Businesses can also use fraud detection tools to look for patterns and identify risks in real-time, and utilize artificial intelligence to compare a customer's typical behavior with current behavior to identify and block suspicious activity. Geolocation and liveness detection can also be used to verify the authenticity of transactions.

What is the scope of the account takeover fraud problem?

Account takeover fraud is a significant threat that requires proactive measures to prevent and detect. Estimated losses related to account takeover fraud in the US alone amount to $11 billion, representing a 90 percent increase from previous estimates. Additionally, 39 percent of respondents in a global compliance survey said the type of fraud they were most concerned about was credit/debit card fraud, closely followed by identity theft (36 percent).

How can businesses stay ahead of account takeover fraud threats?

With the right tools and strategies, businesses can stay ahead of account takeover fraud threats and protect their customers and reputation. This includes using a comprehensive suite of tools and innovative approaches to detect and prevent account takeover fraud, such as those offered by Footprint. Implementing sanction screening and watchlist screening can also help identify potential risks.