What is account takeover fraud (ATO)?
Account takeover fraud is when a fraudster gains access to an account that does not belong to them, changes information such as log in credentials or personal information, and then makes unauthorized transactions in that account. This has gone a step further in recent years, where the fraudster also gains control of separate accounts, such as mobile or email accounts, where one-time passwords or password change instructions can be sent. According to Javelin research, there was a 72% increase in year-over-year ATO fraud in 2019.*
In the future, we predict that hackers will increasingly turn to automated methods, including script creation and credential stuffing to make cyberattacks and account takeovers easier and more scalable than ever before.
*Source: 2020 Identity Fraud Study: Genesis of the Identity Fraud Crisis, Javelin Research, April 2020