Account Takeover (ATO) Fraud Statistics and Scams
The FBI Internet Crime Complaint Center has received over 5,000 consumer complaints regarding ATO fraud as of this year, amounting to more than $250 million. This information was part of an FBI warning about new ATO scams that consumers should be wary of.
In cases of ATO fraud, criminals typically gain unauthorized access to targeted online financial institutions. Although many associate ATO with bank accounts, any type of account is potentially at risk. For instance, a fraudulent takeover of an email or social media account can also pose significant dangers.
Hacking into Multiple Accounts
The criminal objective extends beyond just monetary theft; they aim to exploit additional details to cause further harm.
“If I only have your username and password, when I log in to your financial account, maybe now I can see your email address and phone number,” explained Jennifer Pitt, a Senior Analyst in Fraud Management at Javelin Strategy & Research. “Financial institutions must recognize that not just bank accounts but multiple accounts are being targeted, and they need to act swiftly.”
The FBI warning advised avoiding ATO through social media by refraining from sharing personal details like pet names, birth dates, or information about family members, as these can aid fraudsters in guessing passwords or security answers.
New Trends in Scams
Scammers have become increasingly sophisticated. Even seemingly legitimate calls from banks are no longer safe; the FBI suggests being cautious of unsolicited phone calls from unknown “banking” employees and verifying numbers by calling back directly.
The FBI also highlighted a recent tactic known as search engine optimization (SEO) poisoning, where cybercriminals purchase online ads to make them appear legitimate. Clicking on these fraudulent ads can lead users to phishing sites that mimic genuine websites, tricking individuals into entering their login information.
To prevent this, the FBI recommends using bookmarks or browser favorites for website navigation and carefully checking email addresses or URLs in unsolicited emails or texts before clicking them.