How to identify and prevent account takeover fraud

Imagine waking up in the morning and checking your bank account balance, only to discover that some of your hard-earned money is missing. Or worse — trying to log in to your account and finding you’ve been locked out and have no access to your funds.

How will you pay your bills, get gas or grab dinner for your kids? Unfortunately, that’s a problem millions of American face every single year, typically because of account takeover fraud.

Also, as methods continue to evolve in an increasingly digital world, it becomes easier to fall for account takeover fraud. But as you might expect, the best way to protect yourself is to arm yourself with knowledge. Let’s talk about account takeover, as well as a few ways you can identify it and protect against it.

What is an account takeover?

An account takeover is a form of fraud and happens when someone gains unauthorized access to your account. Usually, they steal your login credentials or find personal information to make it look like they’re actually you. Once they take over, their unfiltered access lets them wreak havoc in:

• Bank accounts: Fraudsters can withdraw or transfer your money to themselves.
• Credit cards: They can make unauthorized purchases and open new accounts or lines of credit.
• Online accounts: They may go beyond finances and hijack emails, social media profiles or e-commerce accounts, all while acting as you.
• Utility and service accounts: They can open accounts, including phone lines, in your name.

Tip: The impact of account takeover fraud can go beyond finances and even damage credit. Fraudsters can force you to spend excessive amounts of time to recover your information or violate your privacy and cause emotional distress.

How do account takeovers happen?

Fraudsters usually obtain your information by using your kindness and trust against you. Some of their tactics include:

• Phishing emails and texts: Fraudsters are getting craftier every day, writing increasingly convincing messages that mimic trusted brands or even someone you know. They often urge you to click nefarious links or enter sensitive information.
• Data breaches: As data becomes more valuable and public, large-scale hacks and leaks expose usernames, passwords and personal details from compromised organizations.
• Weak passwords: Simple, reused or predictable passwords make it easy for cybercriminals to gain access to your accounts.
• Public Wi-Fi: Hackers exploit unsecured Wi-Fi networks to intercept login credentials and other sensitive data.
• Malware: Clicking on harmful links or downloading infected files can give hackers access to your devices and information.

Tip: Even seemingly minor actions, like leaving sensitive documents in the trash, can provide criminals with the information they need to strike

How to spot account takeover early

In the fight against fraudsters, the best weapon is knowledge. That’s why it’s important to know how to identify account takeover fraud attempts and shut them down. Look out for things like:

• Unauthorized charges, transactions or transfers in your bank account
• Email or text alerts for logins on devices or at locations you don’t recognize
• Account lockouts, especially if you didn’t ask to reset your password
• Notifications saying your account or settings have been changed
• Missing bills, suspicious emails or alerts about data breaches

Tip: If you see any of these red flags, take immediate action and let us know. The best way to prevent fraud is always to be one step ahead, and as your financial institution, we can help you secure your account. Call a member of our team at (602) 433-7000.

How to protect your accounts and information

On top of recognizing scam attempts, you can take steps to make your information more difficult for scammers to get their hands on. Here are some of the best ways to protect yourself:

• Use strong passwords: Make your password complex by using a mix of letters, numbers and special characters. Also, length is important. Remember, the longer your password, the more possibilities a scammer would have to guess. It’s also important to avoid reusing passwords, especially if they’ve appeared in a data breach. Having identical login credentials can give scammers access to multiple important accounts.
• Enable two-factor authentication (2FA): 2FA is an extra step that requires you to verify your identity through your phone or email. That often makes it more difficult for fraudsters who don’t have your physical devices.
• Look out for phishing attempts: Always be skeptical of emails, especially if you aren’t expecting them. Messages asking for your information or telling you your data has been compromised may be phishing attempts, especially if they ask you to take immediate action or sign in to an account. Remember to trust your gut. If it looks and smells fishy, it might just be phish-y.
• Monitor your accounts regularly: Frequently look through your bank statements, credit and debit card transactions and online accounts for any signs of tampering. If you don’t recognize a charge or a change, someone may have access to your account.
• Update software: Scammers can exploit software that is no longer maintained or doesn’t continue to patch holes to protect your information. The best way to combat that is by keeping your apps, operating systems and antivirus software up to date with the latest protections.

Tip: Proactivity is important. It’s much easier to keep scammers out than it is to remove them from your accounts. If you see suspicious activity or receive unusual messages, do not respond to them. Instead, report them immediately.

Account takeover protection

These days, it’s more likely to be when, not if, you’ll see a scam attempt. But it’s important to stay calm and composed. You’re ready for this! Keep a close eye on all your accounts, report any suspicious activity and develop strong security habits to protect your identity and information.

Also, remember fraud can happen to anyone, no matter your age or level of tech savvy. There’s no reason to feel shame, and when you bank with us, you have a partner who cares just as much about your safety as you do. If you need help securing your finances, don’t hesitate to reach out to our fraud department by calling (602) 433-7000.