Solving the Fraud Problem: What is Account Takeover Fraud?

by Chris Ryan 3 min read February 11, 2021

Over the last several weeks, I’ve shared articles about the problems surrounding third-party, first-party and synthetic identity fraud. To wrap up this series, I’d like to talk about account takeover fraud and how digital transformation has impacted it over the last year.

What is account takeover fraud?

Account takeover fraud is a form of identity theft that involves unauthorized access to a user’s online accounts to enable financial crimes. Criminals can obtain information in a number of ways, including the dark web, spyware and malware, and phishing to allow them to make unauthorized transactions with the user’s account.

Fraudsters have made efforts to also gain control of mobile or email accounts so they can intercept one-time passwords or password change instructions to retain control of the account. Once fraudsters have control of one account, they can use it to access other personal information to breach additional accounts and graduate to full-scale identity theft.

How does account takeover fraud impact me?

Account takeover fraud is damaging to businesses and consumers. It leads to losses and well as resources invested to confirm fraud.

The potential losses from account takeover fraud have spiked over the last year, in large part due to the opportunities created by the rapid increase of digital interactions and the influx of users interacting with merchants and financial institutions online for the first time.

Aite research shows that 64% of financial institutions are seeing higher rates of ATO fraud attacks now than prior to the pandemic. – Trace Fooshee, Senior Analyst, Aite Group1

Account takeover can also be difficult to detect. Unlike credit card fraud where the true owner might quickly notice suspicious charges, an account takeover attack can go undetected for long periods of time. That’s because the criminal can change login and contact information, ensuring that the real accountholder doesn’t realize they’ve been compromised immediately.

Solving the account takeover fraud problem

A good account takeover fraud prevention strategy requires two things: frictionless customer experience and robust risk management.

It’s clear that customers expect seamless interactions with merchants and lenders. At the same time, businesses need to be able to spot risky or suspicious behavior before a bad transaction occurs. That’s where a layered fraud management solution comes into play. With the right tools—including risk-based identity and device authentication and targeted step-up authentication—businesses can provide a good customer experience and only pull in staff for deeper investigations where necessary. With this strategy in place, businesses can easily recognize good customers and provide a more personalized experience, while at the same time combatting fraud – boosting growth and minimizing losses in the long run.

I hope this series has helped provide insights into the different types of fraud and why each of them requires different treatment. To learn more about the risks of account takeover and how a layered fraud management solution can help protect your business and your customers, feel free to contact us.

1Key Trends Driving Fraud Transformation in 2021 and Beyond, Aite Group, December 2020

Related Posts

How Union Credit Expands Access to Credit Unions with Experian

Discover how Union Credit and Experian help credit unions reach younger consumers through personalized digital lending experiences.

Published: July 1, 2026 by Scarlet.Nickel@experian.com
Faster Decisions, Better Outcomes: Experian Verify™ Now Available Through Centro, Mezzo’s Orchestration Engine 

Explore how Experian Verify™ and Mezzo’s Centro orchestration engine are helping mortgage lenders modernize income and employment verification, reduce workflow complexity, and make faster, more confident lending decisions at scale.

Published: July 1, 2026 by Lizel Ferrer
Used EV Growth Signals a New Phase of Consumer Purchasing Behavior

The electric vehicle (EV) revolution isn’t slowing down, it’s changing lanes. While recent conversations have seemingly focused on softening demand for new EVs, the used segment has been gaining momentum. According to Experian Automotive’s 2025 EV Year in Review Report, new retail individual EV registrations fell 35.9% year-over-year. Meanwhile, the used retail individual EV registrations grew 25.4% from a year ago. As affordability and growing model availability reshapes consumer behavior, buyers are increasingly turning to pre-owned EVs, which has shown an interesting market divergence that is redefining how consumers are adopting this segment and what it can mean for automakers, dealers, and the overall industry. Key players behind rising used EV demand Notably, Tesla accounted for over half (60.5%) of used retail individual EV registrations in 2025, followed by Chevrolet at 6.4% and Nissan (5.5%). Diving a bit deeper, Tesla made up the top three models of the used individual registrations last year, with the Model 3 coming in at 27.2%, Model Y at 21.7%, and Model S (6.6%). The Chevrolet Bolt EV followed at 4.8% and the Nissan Leaf was at 4%. Tesla’s position as the leading make in the used EV market is a natural extension of its long-standing dominance in new EV sales. The brand’s leadership over the years created a large fleet of vehicles that are now entering the pre-owned market. What the used EV boom means for automotive professionals The growing demand for used EVs can present more opportunities for automotive professionals. Dealers that provide a healthy supply of pre-owned EVs can increase accessibility and play a role in adoption for consumers who are actively looking to purchase, while marketers can emphasize value and ownership benefits. As the market continues to evolve, automotive professionals who understand and respond to these changing dynamics will be best positioned to capitalize on the expanding pool of used EV shoppers. To learn more about EV insights, visit Experian Automotive’s EV Resource Center.

Published: June 30, 2026 by Kirsten Von Busch

Subscribe to our thought leadership

Enter your name and email for the latest updates.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Subscribe to our thought leadership

Don't miss out on the latest industry trends and insights!
Subscribe