Account takeover fraud: What is it and how to reduce your exposure.

Account takeover (ATO) attacks are a growing threat to businesses, fueled by increasingly sophisticated tools and tactics. These attacks happen when fraudsters gain access to sensitive account information, such as login credentials, and use it to impersonate legitimate customers or employees. Often, attackers begin with phishing emails or texts designed to trick users into clicking a malicious link. Once they gain access, they change the items such as the password, contact email and phone number associated with the account to lock out the rightful owner and eliminate warning signals. From there, they can make fraudulent purchases using stored payment methods, redeem loyalty rewards, buy gift cards or use personal information to compromise additional accounts. Because the activity appears to come from a trusted source, banks or card issuers may not detect the fraud right away, increasing the financial impact and the risk of long-term damage to customer relationships.

What’s fueling the rise in ATO fraud?

• Credential reuse: Many users still reuse passwords across platforms. If one account is breached, others can quickly follow.
• Phishing and social engineering: Email, text and voice phishing tactics remain highly effective, especially when attackers impersonate vendors or executives.
• Multi-factor authentication (MFA) fatigue: Attackers are now exploiting MFA by flooding users with access prompts until they approve one by mistake.
• AI-driven scams: Fraudsters are using generative AI tools to craft more convincing emails and spoof familiar voices to trick users.
• Credential stuffing attacks: Automated tools let bad actors test stolen credentials against hundreds of sites in minutes.
• Remote work vulnerabilities: Home networks, personal devices and shared access points can introduce gaps in protection if not managed carefully.

Practical ways to reduce your risk and help your team stay protected.

• Avoid using personal devices for work. Encourage employees to perform business tasks only on devices managed and secured by your IT department. Personal devices may not have the necessary protection and can be more susceptible to malware.
• Watch for phishing and business email compromise (BEC). Remind employees to be cautious with emails asking for sensitive information or urgent action. Fraudsters often pose as executives, vendors or even coworkers to trick recipients.
• Check before clicking. Always hover over a link to preview the URL before clicking. If the address looks suspicious, don’t proceed. Attackers often use lookalike domains that mimic real sites.
• Stay current on updates. Make sure all devices, especially those used off-site, are receiving automatic security and firmware updates. These updates help fix known vulnerabilities.
• Get IT approval before installing hardware. Even common accessories like keyboards or printers can be used to deliver malware. Purchase only from trusted sources and check with your IT department before connecting new equipment.
• Secure Wi-Fi networks. Home internet should be password-protected with encryption enabled. Encourage employees to talk with their internet provider about best practices for securing routers and modems.
• Use MFA wisely. Enabling MFA is critical, but so is educating employees about potential MFA fatigue attacks. If they receive unexpected login prompts, they should deny access and report the activity immediately.
• Regularly review account activity. Monitor for unusual transactions, login attempts from unfamiliar locations or sudden changes to account settings.
• Educate often and early. Make security awareness part of your culture. Host regular training sessions and share examples of common scams to help your team stay vigilant.

While no solution is foolproof, creating a culture of security within your organization is one of the most effective ways to stay ahead of fraud. Don’t wait until fraud occurs. Contact us to start building your defenses.