Account Takeover ProtectionWhat’s the Best Way to Counter Account Compromises?

10 Account Takeover Protection Best Practices for Business

Imagine this: you get a ping, and you check your phone to see you’ve got a notification from Amazon.

The notification says that the $1,500 gaming laptop you ordered has been delivered. Just one problem: you never ordered the laptop. So, you tap on the notification to see what’s going on, and are shocked to find that someone has gone on a big budget shopping spree using your Amazon account, totaling thousand of dollars.

The example I outlined above is a textbook case of account takeover fraud. This is where unauthorized individuals gain access to personal accounts. These attacks are also connected to identity theft, involving the fraudulent creation of new accounts under someone else's identity.

In 2022, the Federal Trade Commission (FTC) recorded a staggering 725,000 impostor scams like this. Combined, account takeover attacks represented 35.62% of the total 5.2 million fraud reports received by the FTC in 2022.

The data clearly indicates not only the prevalence of these scams, but also their escalating financial impact. It’s a big problem that demands a solution. But how exactly does this happen, and what does account takeover protection look like? Let’s find out.

How Does Account Takeover Happen?

Account takeover is a type of online identity theft. Attackers steal login details or personal information (like social security numbers, addresses, and bank details) and use them to carry out fraud.

ATO fraud happens when these fraudsters gain control of your online accounts. They pretend to be you, change your account info, spend your money, or use your details to get into your other accounts. Once they have your info, they can scam other people, ruin your reputation, and even sell your personal details to other bad actors.

Usual targets for ATO attacks include:

• Social Media Accounts: They use these to trick friends or followers.
• Email Accounts: To dig up more personal info or reset passwords on other accounts.
• Bank Accounts: To swipe cash, mess with financial services, or take out loans in someone’s name.
• Shopping Accounts (like Amazon): To go on a shopping spree with stolen money or grab associated card details.

These attacks are a nightmare for online businesses and their customers. The damage can hit hard and fast. It can last a while, too, especially if it takes time for you or the business to catch on.

We’ve already covered this topic pretty extensively on our blog. So, if you’re looking for a more in-depth explanation of ATO threats and red flags, check out our main article on the topic:

Learn more about account takeover

Why is Account Takeover Protection Necessary?

Account takeover protection is about defending online accounts from unauthorized access or misuse. It's a crucial part of digital security that focuses on preventing hackers or cybercriminals from gaining control of your accounts. This has an impact on:

A huge portion of our lives happen online. That’s why account takeover protection is more than just a technical necessity. It's a critical aspect of maintaining our digital well-being and our online presence.

What Does Account Takeover Protection Entail?

Account takeover protection essentially refers to any set of security measures or strategies aimed at preventing unauthorized access to your accounts. This can cover crucial practices that are important for both consumers and merchants. 

Examples of account takeover protection practices could include:

• Personal identity protection software like LifeLock or McAfee
• Professional identity theft prevention services like Aura or Identity Force
• Password management services like 1Password 
• Security training for businesses, a la Knowbe4

Software and third-party security services are not the only solutions here. As a matter of fact, account takeover protection really starts at the individual level. 

For users, it’s about being careful and proactive with your account security. For businesses, it’s about using technology and policies to safeguard your customers’ accounts. When both sides work together, it becomes much harder for the bad guys to get in.

Which Tactics Does Account Takeover Protection Prevent?

So, what specific tools and practices will help here? Below, I’ve outlined a few of the most common ways in which scammers get access to victims’ accounts, and what can be done to stop them:

Account takeover protection is a multifaceted endeavor. You have to combine technology solutions, user education, and best practices in cybersecurity to defeat ATO. Ultimately, it's about creating several layers of defense to make it harder for attackers to succeed in their attempts.

10 Account Takeover Protection Best Practices

Naturally, you want to know what else you can do to keep this from happening in the first place. Well, as hinted at above, there really isn’t a “one-size-fits-all” solution. But, in the fight against account takeover, adopting a series of best practices will help bolster your defenses. 

Here are ten key strategies to consider:

#1 |  Implement Two-Factor Authentication

This adds an extra layer of security beyond just the password. Even if a password is compromised, 2FA can prevent unauthorized access.

#2 |  Limit Login Attempts

Implementing a limit on the number of failed login attempts can thwart brute-force attacks. After a set number of incorrect tries, the account should be temporarily locked.

#3 |  Notifications for Account Changes

Send real-time alerts to users for any changes made to their account settings, including password changes, new logins, or changes in contact information.

#4 |  Track & Block Suspicious Accounts

Monitor account activities and flag any unusual behavior, like logins from new locations or devices. Suspicious accounts should be temporarily blocked or subjected to additional verification.

#5 |  Use Advanced Password Policies

Enforce strong password requirements, such as a minimum length, the inclusion of special characters, and regular password updates.

#6 |  Regular Security Audits

Conduct periodic reviews of your security infrastructure to identify and address potential vulnerabilities.

#7 |  Educate Users About Security Risks

Regularly inform your users about the importance of security. Provide information about how to recognize phishing attempts or other security threats.

#8 |  Encryption of Sensitive Data

Encrypt user data both in transit and at rest. This ensures that even if data is intercepted, it remains unreadable without the proper decryption key.

#9 |  Account Recovery Processes

Establish secure and user-friendly account recovery processes. This might include identity verification steps that don't rely solely on easily obtainable personal information.

#10 |  Leverage Machine Learning

Use machine learning algorithms to detect abnormal patterns of behavior that might indicate an ATO attempt. This can include analyzing login times, locations, and device usage patterns.

Account Takeover Protection Can’t Stop Every Attack

The best practices I outlined above are a forward-facing approach to account takeover protection. While no system is entirely foolproof, layering these strategies can create a strong barrier against unauthorized account access, ensuring both user trust and the integrity of the system.

But, even the most comprehensive account takeover protection isn’t infallible. Cybersecurity is a constantly evolving field. Attackers continually develop new methods, and there's always a gap between the emergence of a new threat and the development of good countermeasures.

For instance, let’s say someone inside an organization, like an employee with legitimate access, decides to misuse their access rights. It can be challenging to detect and prevent this kind of activity. This is because their activities might not trigger the usual security alarms. 

This is why it’s so important for merchants to deploy a multi-tiered fraud prevention strategy that monitors fraud before and after each transaction.