How To Prevent Account Takeover?

Account takeover (ATO) fraud is a growing and serious threat across personal, corporate, and institutional environments. Beyond the staggering financial losses—reaching $13 billion in 2023 alone—ATO also damages organizational reputations and disrupts operations, emphasizing the need for account takeover protection. With a sharp 354% increase in reported cases, it’s evident that strong protective measures are crucial.

This article explores what account takeovers are, how they occur, which groups are most at risk, and how to effectively prevent them.

What is Account Takeover?

Account takeover (ATO) occurs when a cybercriminal gains unauthorized access to a legitimate user’s account. Unlike brute-force attacks, ATO relies on deception and stolen credentials to bypass security defenses. Attackers often use data breaches, phishing, and other methods to infiltrate accounts, with their activities often going unnoticed until significant damage has been done.

How Does Account Takeover Happen?

Account takeover typically unfolds in two phases: information gathering and exploitation of access.

Information Gathering

Attackers acquire sensitive data using several tactics:

Data Breaches: Hackers buy or exploit leaked usernames, passwords, and personal information from breaches to compromise accounts, often by cross-referencing multiple breaches to create comprehensive user profiles.
Social Engineering: Phishing, vishing (voice phishing), and SMiShing (SMS phishing) are used to trick individuals into disclosing their sensitive data.
Data Scraping: Attackers gather information from publicly available sources, such as social media or other open platforms, to build detailed profiles.
Malware: Keyloggers and spyware stealthily capture login credentials and other private data.

Access Exploitation

Once the attackers have enough information, they proceed to exploit it to gain access:

Credential Stuffing: Automated tools are used to try combinations of stolen usernames and passwords to gain access.
Password Spraying: A common password is used across multiple accounts to test for vulnerabilities.
Session Hijacking: Attackers steal session tokens to impersonate legitimate users and bypass security measures.
SIM Swapping: By transferring a victim's mobile number to their own SIM card, attackers can bypass SMS-based two-factor authentication.

Who Is Most Vulnerable to Account Takeovers?

Certain industries and types of accounts are more susceptible due to their value or lax security practices:

Financial Institutions: Financial accounts, especially in areas like cryptocurrency exchanges or "buy now, pay later" services, are prime targets due to their direct link to monetary theft.
Retail and E-commerce: Hackers exploit stored payment details for fraudulent purchases or to steal loyalty rewards. High-traffic seasons and interconnected systems increase vulnerability.
Healthcare Institutions: Medical records, which contain valuable personal and financial data, are often targeted. Patient portals and ransomware attacks are common risks.
Technology and SaaS Providers: Weak API security and high-value administrator accounts make tech firms particularly attractive targets.
Educational Institutions: Often overlooked, universities and schools hold sensitive data related to research, finance, and personal details, making them ripe for exploitation.