How to Prevent Account TakeoverOur Top Tips for Cardholders & Merchants
In a Nutshell
Spotting an account takeover attempt doesn’t matter if you can’t stop it from happening. In this piece, we’ll talk about how cardholders and merchants can prevent account takeovers from disrupting your business and life, and leave you with actionable best practices you can use to keep your accounts locked down.
Detection is a Good Start, But Prevention is What Matters
Detecting imminent account takeover attacks is only half the battle. Preventing an attack from happening is what really matters, and even a single thwarted takeover attempt can save you thousands — or in the case of a business, millions — of dollars.
After all, consider the fact that every dollar lost to fraud ultimately cost US merchants $4.61 to resolve.
Fraud prevention practices and tools are an investment. And, the “fraud multiplier” effect I just mentioned suggests that the costs of preventing an account takeover fraud from happening in the first place are nothing compared to the fallout from a successful attack.
In other words: an ounce of prevention is worth a pound of cure.
All that being said, I wanted to take a look at some actionable ways for both merchants and cardholders to prevent falling victim to account takeover attacks.
Preventing Account Takeover: 5 Tips for Consumers
Cybercriminals are constantly seeking ways to gain unauthorized access to your online accounts. That’s why it's crucial to take preventive measures. To that end, we've compiled a list of five straightforward tips to help the average consumer protect their online presence and keep fraudsters at bay:
#1 | Password Perfection
The foundation of account security lies in creating strong, unique passwords. Forget the days of “password123;” you need to embrace the power of a complex passphrase. Use a combination of upper and lowercase letters, numbers, and special characters.
Consider using a trusted password manager like Lastpass to help generate and store your passwords securely.
Passwords
#2 | Two-Factor Authentication (2FA)
Adding an extra layer of security is always a good idea. Enable two-factor authentication (2FA) on your accounts whenever possible. This requires a secondary verification method, such as a one-time password (OTP) or biometric data, in addition to your primary password. This ensures that even if your password is compromised, attackers still can't access your account.
#3 | Monitor Account Activity
Regularly reviewing your account activity can help you spot any suspicious behavior before it escalates. Set up notifications for unusual transactions, login attempts, or changes to your account information. If you notice anything out of the ordinary, take immediate action by contacting your account provider or changing your password.
#4 | Beware of Phishing Attacks
Fraudsters often use phishing emails or messages to trick you into revealing sensitive information. Be vigilant about scrutinizing any email, text message, or social media communication that requests your login credentials or personal data. Remember: legitimate companies will never ask you for your password or sensitive information through these channels.
#5 | Keep Software Up-to-Date
Outdated software can be a goldmine for cybercriminals looking to exploit vulnerabilities. Regularly update the operating system, web browsers, and security software on all of your devices to stay protected against new threats.
Account takeover fraud can have serious consequences. But, by implementing these simple steps, you'll be well on your way to securing your online presence. Stay informed, stay vigilant, and stay one step ahead of fraudsters.
Preventing Account Takeover: 5 Best Practices for Merchants
No business is immune to fraud. However, the means to combat fraud are also diversifying. There are now plenty of tools and tactics you can deploy to protect your business and your customers against account takeover fraud.
With that in mind, here are five best practices to get you started:
#1 | Check Password Strength
Discourage customers and employees from ever using the same password twice, or sharing one password across multiple accounts. Remembering dozens of sets of login credentials is hard, but password management software like Single Sign-On (SSO) can alleviate password anxiety and keep accounts safe.
#2 | Layer Up
Another good idea to protect your data is to deploy a multilayer strategy. Adopt cybersecurity best practices, deploy secondary security processes like security questions, and offer two-step authentication. The more fraud detection mechanisms you have in place, the harder you make it for fraudsters to take advantage of you.
#3 | Go High-Tech
Using the biometric identification software enabled on most smartphones and tablets can provide a solid finishing touch to your security plan. Biometric information is much harder to crack than manually entered data. Many mobile payment apps like Apple Pay allow for biometric payment authentication.
#4 | Get Virtual
Individuals who work from home can better defend their data by implementing Virtual Private Networks (VPNs) across all web-based platforms. You should also ensure that you always operate according to PCI compliance standards to protect your customers’ data.
#5 | Hire a Pro
Fraud prevention services are in high demand. They are proven to drastically reduce breaches that lead to lost revenue. If you manage a multitude of accounts at risk for takeover fraud, third-party software or services might save you the most money in the long run.
