Account Takeover Fraud (ATO)
is happening when a fraudster uses somebody else's credentials in order to gain unauthorized access to an account and uses it to their own advantage. The fraudster monetizes the account by either transferring funds, making unauthorized purchases, or selling the account data elsewhere. The main problem of this particular type of fraud
is that the credentials used for taking over one account are usually used to access multiple other accounts and cause that much more damage. This makes it distinct from card-not-present fraud, where only one relationship is endangered.
With Account takeover fraud, timing is crucial. It is extremely important to stop the attack in the earliest stage of the fraud lifecycle. By continuous monitoring of account history and customer behavior, it is possible to detect anomalies and extract activities that do not match previous patterns. Mentioned best practices, accompanied by Strong Customer Authentication (SCA) and 3D Secure technology, promise the highest level of security.