Account Takeover Fraud

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A couple of weeks ago I posted about a leaky water heater. That was an unexpected way to ruin my weekend, but this post is about something that can destroy a whole lot more. Account takeover fraud is on the rise, and it’s a huge risk to your finances. So, what is account takeover fraud, and how do you prevent it?

Account Takeover Fraud is when a fraudster performs data mining and phishing to gain access to login credentials. From there, they change passwords, login IDs, security questions, contact information, and more – which means they now have TOTAL control over your account. Imagine if this takeover was for something tied to your bank – PayPal, Venmo, or other apps or sites that store your banking information. 

Prevention

• Pay special attention to emails. If you receive an email from someone you do not know, be very cautious about opening the message. Hackers hide malware in:

1. Links

2. Downloads

3. Plug-ins.

If installed, a keylogger can record your login credentials. If your online or mobile banking has been compromised, your info is out there, and fraudsters are free to intercept and redirect transfers.

• Spam and robocalls are a daily occurrence for many of us. Never answer a call from a suspicious phone number. A good practice is to let any unrecognized number go to voicemail. If the call is legit, they will leave a message.

• Fraudsters also use SMS or text messages to scam you. Unless you recognize the person who sent you the message, never click on a link in a text message.

• Use caution when you create passwords. Avoid using the same password across sites and apps. Thieves on the dark web use bots to auto log in to sites and services with stolen credentials. If you are using the same password across the Internet, you are risking ALL of your information. Create complex passwords and change them often.

• Avoid using shared WiFi when possible. If you are out in the public, there is a good shot that a scammer is monitoring web traffic looking for vulnerabilities. Don’t make their job any easier!

• Sometimes, no matter what you do, you may be part of a data breach. In those cases, fraudsters can use your information to impersonate you. Use caution with the information that you provide online and on social media. If you receive notice of a data breach, follow the recommended guidance in the communication that you receive, including changing your password. You may also want to monitor your credit report for signs of unauthorized accounts or fraud.

Do you have anything to add about protecting yourself from account takeover fraud? I want to hear from you. Leave a comment below or email me.

Krista Kyte is a personal finance blogger and personal banker with over 18 years of experience in the financial industry. Krista is passionate about helping our members understand their financial situations. She writes tips that will help consumers reach and maintain financial security, and start living the life they’ve always wanted.