Unauthorized Account Seizure: Guidelines for Defense and Safeguard

Unauthorized Account Seizure: Guidelines for Defense and Safeguard

In the digital age, account takeover (ATO) incidents have become a significant concern for businesses worldwide. ATO refers to a type of identity fraud where fraudsters gain unauthorized access to someone's online account by stealing their personal information [1].

According to Sumsub's internal statistics, global account takeover incidents increased by 155% in 2023 [2]. This underscores the importance of understanding the methods used by fraudsters and implementing robust countermeasures to prevent such attacks.

Fraudsters employ various tactics to execute ATO attacks. These include credential stuffing, where automated bots test stolen username-password pairs across multiple sites, exploiting reused credentials by users [1]; phishing, where fraudsters send deceptive emails, SMS, or social media messages to trick users into revealing login credentials [1][2]; brute force attacks, systematic attempts to guess passwords using automated tools [1][3]; and MFA bypass techniques, such as SIM swapping and social engineering of helpdesk staff [3][5].

Other tactics include Man-in-the-Middle (MitM) and Adversary-in-the-Middle (AiTM) Attacks, which intercept or manipulate communications to capture unencrypted credentials [1][3]; social engineering, where fraudsters impersonate employees or help desk personnel to manipulate victims or internal staff into revealing access or resetting credentials [2][5]; and malware, using malicious software to infiltrate devices and capture credentials or session tokens [4][3].

These methods often combine technical exploits with sophisticated human-led tradecraft, such as gathering personal data from social networks to create convincing impersonations and bypass security controls like MFA [5]. Fraudsters increasingly target privileged accounts as they provide broader access [5].

Businesses in sectors such as financial services, iGaming, virtual asset service providers (VASPs), trading, marketplaces, and carsharing companies are more at-risk of account takeover attacks [6]. If account takeovers occur on their platform, companies risk running into financial and reputational losses, including data theft, money laundering, and fraud committed with the use of the stolen accounts [7].

To combat account takeovers, companies should monitor user behavior for unusual or suspicious patterns, such as sudden change of geolocation, changes in personal information, login attempts from unrecognized devices, and abnormal transactions [8]. They should also implement more robust countermeasures, including strong passwords, robust MFA mechanisms, and user education [1][3][5].

Advanced anti-fraud systems should encompass strong authentication, fraud detection, security education, continuous account monitoring, risk-based authentication, and account recovery and remediation processes [9]. Companies can also leverage AI-driven solutions like Sumsub's, which uses AI-driven algorithms to analyze anomalies and keep track of important information [6].

Sumsub has prepared a guide explaining what account takeover is, how it affects businesses, and what companies can do to prevent it. This guide is a valuable resource for businesses looking to protect their digital assets and maintain the trust of their customers.

References: [1] https://www.sumsub.com/blog/account-takeover-prevention-methods/ [2] https://www.sumsub.com/blog/account-takeover-statistics-2023/ [3] https://www.sumsub.com/blog/account-takeover-attacks-methods/ [4] https://www.sumsub.com/blog/malware-attacks-on-accounts/ [5] https://www.sumsub.com/blog/social-engineering-in-account-takeover-attacks/ [6] https://www.sumsub.com/blog/how-to-prevent-account-takeover-with-sumsub/ [7] https://www.sumsub.com/blog/account-takeover-risks-for-businesses/ [8] https://www.sumsub.com/blog/account-takeover-prevention-tips/ [9] https://www.sumsub.com/blog/advanced-anti-fraud-systems-for-businesses/

1. Businesses in sectors like finance, iGaming, VASPs, trading, marketplaces, and carsharing companies, which are more susceptible to account takeover attacks, can suffer financial and reputational losses due to data theft, money laundering, and fraud when such incidents occur on their platforms.
2. To safeguard their digital assets and uphold customer trust, businesses should embrace advanced anti-fraud systems that include strong authentication, fraud detection, security education, continuous account monitoring, risk-based authentication, and account recovery and remediation processes, as well as AI-driven solutions like Sumsub's.

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