Account takeover fraud: What it is and how to protect yourself

From paying bills to paying for groceries — even banking online — many of our daily activities now happen through digital accounts. Unfortunately, cybercriminals know that too, and they're constantly looking for ways to gain access.

Across the country, a growing threat is account takeover fraud, where criminals gain access to one of your online accounts. Once inside, they can lock you out, steal your money and use the account to target other accounts you own.

The good news? Understanding how account takeover fraud works can help you prevent it.

How does an account takeover work?

It starts when a fraudster obtains your login credentials and uses them to access an existing account without your permission. There are several ways they can get this information, including:

• Phishing emails and text messages designed to trick you into sharing login details
• Passwords exposed in data breaches
• Malware or spyware that captures personal information
• Credential stuffing attacks that use stolen passwords across multiple websites
• Social engineering scams that manipulate people into revealing sensitive information

Once in, they may change your password, update account settings, make purchases, transfer money or use the account to commit additional fraud.

Why account takeovers are on the rise

The average person manages dozens of online accounts. When the same password is reused across multiple sites, a single data breach can create opportunities for fraudsters.

For example, if a password is exposed through one retailer or service provider, criminals may try that same username and password combination on banking, shopping, email and social media accounts. Automated tools make this process fast and easy, which is why password reuse remains one of the biggest security risks for consumers.

How to reduce your risk

While no security measure is foolproof, a few simple habits can make it much harder for criminals to take over your accounts.

Use strong, unique passwords. Every account should have its own password. If one password is compromised, unique passwords help prevent fraudsters from gaining access to your other accounts.

A password manager can help you create and securely store strong passwords without having to remember them all.

Turn on multi-factor authentication. MFA adds an extra layer of protection by requiring a second form of verification in addition to your password, such as a code sent to your phone or email.

Even if a fraudster obtains your password, MFA can help stop them from accessing your account.

Pause before clicking links. Phishing emails and text messages often create a sense of urgency to pressure people into acting quickly.

Before clicking a link or opening an attachment, take a moment to verify that the message is legitimate. When in doubt, contact the company directly.

Be careful with personal information. Fraudsters often piece together information from social media profiles, public records and other online sources. Limiting the amount of personal information you share publicly can make it harder for criminals to impersonate you.

Keep devices and apps updated. Software updates often include important security fixes. Regularly updating your devices, browsers and apps helps protect against known vulnerabilities.

Check your accounts regularly. Reviewing account activity can help you catch suspicious behavior early, before a small issue becomes a much larger problem.

Signs your account may have been compromised

Account takeover fraud often comes with warning signs. The sooner you spot them, the faster you can take action to protect your money. Signs may include:

• Unexpected login alerts: Notifications about logins from unfamiliar devices, locations or browsers could indicate that someone else has accessed your account.
• Password reset requests you didn't make: If you receive a password reset email or text that you didn't request, someone may be attempting to gain access to your account.
• Changes to account information: Keep an eye out for changes to your email address, phone number, mailing address or other settings that you didn't authorize.
• Transactions you don't recognize: Review account activity regularly. Unfamiliar purchases, transfers or account actions should be investigated immediately.
• Being locked out of your account: If your password suddenly stops working and you know you entered it correctly, there's a chance someone has changed your login credentials.

What to do if you suspect an account takeover

If you think someone has gained access to one of your accounts, act quickly.

• Change your password immediately.
• Turn on multi-factor authentication if it isn't already enabled.
• Review recent account activity for unauthorized changes or transactions.
• Update security questions and account recovery information.
• Contact the company's customer support or fraud team.
• Check your other accounts, especially if you reused the same password elsewhere.

The faster you respond, the better your chances of limiting potential damage.

If you think you’ve been a victim of fraud, contact us immediately at 866-486-7782. We’ll help protect your accounts and provide important next steps.