Account Takeover (ATO) Fraud Prevention

As online transactions between businesses and consumers grow, account takeover (ATO) fraud is a rising concern in the cybersecurity landscape. ATO attacks increased 354% year-over-year in 2023. Cybercriminals can exploit multiple vulnerabilities to gain unauthorized access to accounts. Organizations need effective strategies to prevent ATO fraud.

Understanding Account Takeover Fraud (ATO) 

How does an account takeover happen?

The FBI’s Internet Crime Report 2023 shows that phishing schemes were the most frequently reported cybercrime. There are multiple ways to conduct a phishing attack, but they all involve social engineering – a manipulative tactic that convinces people they are talking to someone they trust.

Cybercriminals often use tactics like data breaches, cookie hijacking, brute force, and malware to take over an account. Lately, however, they are evolving into using AI-assisted cyberattacks. Research by Microsoft and OpenAI reveals that threat actors are using large language models (LLMs) and AI to enhance their cyberattacks. 

Some examples include:

• Using deepfake photos, videos, and audio to impersonate real people
• Creating phishing emails that mimic human communication styles
• Developing code to evade detection

Threat actors are constantly working on improving their methods to bypass security measures. Organizations must remain vigilant in keeping up with their advancements. Otherwise, organizations will face financial losses, operational disruptions, and reputational damage.

Account Takeover Detection Strategies

Many methods employed in account takeover fraud rely on phishing and social engineering tactics. Cybercriminals often exploit the tendency for people to reuse passwords on multiple accounts, use weak passwords, or overlook the signs of a fake website or imposter. The tactics prey on human weakness. 

Organizations should implement employee training and password management practices to mitigate the risk of human error. These strategies provide valuable tools for employees to protect themselves.

Organizations should also consider implementing behavioral analytics to monitor for signs of account takeover attempts. Advanced software solutions can notice anomalous changes in user behavior that may indicate a potential breach. 

Let’s take a deeper look at the effective strategies organizations can adopt to prevent account takeover fraud.

Password management

Complex passwords are the foundation of preventing account takeover fraud. Companies should establish password policies to ensure accounts are secure. While this will vary for every organization, some policies to consider include:

• Minimum password length of 12 characters
• Use of uppercase letters, lowercase letters, numbers, and special characters
• Mandatory password changes on a regular basis like every 3 months
• Can’t reuse old passwords when changing password
• Set limits on login attempts before implementing a temporary block

Companies may benefit from investing in password managers, so employees can securely store passwords for multiple accounts. Password managers can also create complex passwords which makes it easier for the employee to use strong login credentials.

Organizations should enable multi-factor authentication (MFA). It provides an additional layer of security by requiring two forms of authentication. Usually, it’s a combination of a password and a unique code sent to a phone number or email address.

Employee training and awareness

Human error is often seen as the weakest link in an organization’s cybersecurity plan. Regular training can equip employees with tools and knowledge to combat account takeover attempts. 

For example, you can teach them to notice the signs of hacking attempts such as unexpected password reset requests or MFA codes. Displaying real-world examples can empower employees to recognize and report suspicious behavior.

Employee training should also include guidance on the appropriate actions to take if an employee suspects a potential breach or hacking attempt. Encouraging proactive security measures can transform employees into the first line of defense against cyberattacks.

Early detection and monitoring

Organizations should take a proactive approach to preventing account takeover fraud. One effective strategy is credential monitoring. Various databases and the dark web are continuously checked for leaked usernames and passwords.  It can help organizations realize they are exposed and start remediation. 

Another essential aspect of early detection is behavioral analysis and anomaly detection. Machine learning solutions can monitor account behavior to determine normal actions. For example, usual login times and device usage. If an unusual action occurs, it could be an indicator of a compromised account. 

Real-time activity monitoring also plays a crucial role in detecting suspicious activity as they occur. Organizations can receive immediate alerts for anomalies and unusual behavior. The real-time approach facilitates prompt responses and can help mitigate the risk of account takeover fraud. 

Use Flare for Advanced ATO Prevention 

What does Flare account takeover protection do?

Flare combines multiple strategies to create a comprehensive solution to prevent account takeovers. Let’s take a look at how Flare can help some common ATO scenarios:

• Stop cybercriminals from making fraudulent purchases, misusing loyalty points, or executing return scams
• Track the active black market for stolen accounts
• Identify social media channels at risk for account takeover
• Account for stealer log data 

Flare can do this by addressing technical and procedural aspects for robust account security. Some strategies include:

• Session cookie protection: Cybercriminals use session cookies to bypass MFA and other account controls. Through API access, Flare puts a stop to this theft by maintaining a database of leaked credentials and active session cookies.
• Proactive monitoring: Flare provides 24/7 coverage and continuously checks the clear and dark web for leaked data and assets. Organizations will receive immediate notification of any suspicious activities.
• AI-powered dark web analysis: Flare monitors thousands of cybercrime communities and provides high-value intelligence for organizations on their risks.
• Data transparency: All threat intelligence is listed with a source. Flare ensures you can always access primary sources of intelligence.

Is Flare account takeover protection worth it?

In 2023, account takeover fraud resulted in over $13 billion in losses. As cybercriminals make increasingly more sophisticated efforts to take over accounts and breach data, organizations need to rise to the challenge. 

Investing in account takeover protection is part of a multi-layered cybersecurity strategy to keep your accounts and systems secure. Combined with other effective strategies like strong password policies and real-time monitoring, organizations can mitigate the risks of ATO attempts.

Account Takeover Fraud Prevention and Flare

The Flare Account Takeover Prevention solution empowers organizations to proactively detect, prioritize, and mitigate cookie hijacking. Our platform automatically scans the clear & dark web and prominent threat actor communities 24/7. By identifying accounts at risk of being compromised, Flare enables organizations to take preventive measures against account misuse. 

Flare integrates into your security program in 30 minutes and often replaces several SaaS and open source tools. Learn more by booking a demo.