Running an ecommerce business without a hitch is not a child’s play. You have to be on alert mode 24*7 for any suspicious activity that may occur on your website. In a rare case, if you miss the red flags, the chances are high that the security of your website and customers might get compromised. And that’s where the ecommerce fraud emerges. It can be of various types, such as card testing fraud, friendly fraud, refund fraud, and account takeover fraud. Out of all the specified scams, account takeover fraud is the most common one. So, if you want to minimize your financial loss as soon as possible, you must implement account takeover fraud prevention measures now.
Now before you ask, let us explain what account takeover fraud is and how it takes place:
- 1 What is Account Takeover Fraud or ATO?
- 2 How to detect account takeover attacks?
- 3 How to prevent account takeover frauds?
What is Account Takeover Fraud or ATO?
The Account Takeover Fraud occurs when malicious actors pose as genuine customers, gain control of their ecommerce account, and then make unauthorized online payments to buy some products or services. Since most consumers save their card or bank details on shopping sites when placing a particular order, it becomes easy for fraudsters to access that when they peep into their ecommerce accounts.
Thus, when they have sufficient information to make digital payments, they buy the desired products or services and make the most of stolen opportunities. But, if you want to avoid such frauds on your shopping site, all you need to do is confer with a trusted account takeover fraud prevention company right away. Coming to the next topic –
How to detect account takeover attacks?
To detect account takeover attempts on your ecommerce site, all you have to do is check for the below signs:
1. Different country IP addresses
Suppose you notice that suddenly myriads of IP addresses are getting registered from one or more unusual countries. In that case, the chances are high that account takeover scams are taking place on your website. Since the fraudsters might not know the original location of the account owner, they can’t use the correct IP address whenever they place an order on your shopping site.
2. Unknown device models
Do you know that expert perpetrators often try to hide whatever device they use? The reason? They want to make sure that the ecommerce site administrator can’t detect their device anyway so they can keep striving to access several accounts. So, if your system detects scores of devices as “unknown,” it’s a good indicator of incoming account takeover attacks. However, you can prevent this by contacting an excellent account takeover fraud prevention firm in the town.
3. Multiple accounts changing to have the exact details
Another way bad actors can execute ATO scams is by changing the details like email addresses or passwords after gaining control over a particular account. Doing this will prevent the original account owners from accessing their accounts. So, the technique to identify this kind of fraud is to check if you have many accounts with the exact details like email addresses or something else. Once you find that, you can rest assured that someone could be planning to perform a harmful ATO attack on your site.
With that over, it’s time to see –
How to prevent account takeover frauds?
1. Check for compromised credentials
The first thing you can do for account takeover prevention is to compare new user credentials with the changed details in your database. Doing this will let you know when a user has signed in with changed details or whether your existing user’s information got compromised. Once you find any discrepancy in the details on your screen, you can notify your customers immediately about it.
2. Notify users about account changes
The second approach you can follow for ATO prevention is to always send users notifications about any changes made to their accounts. It will allow them to take the necessary steps to protect their banking information if they know that another person has accessed their account. This way, they can minimize or even reverse the damage by taking strict actions instantly.
3. Set limits on login attempts
The third technique you can implement to keep ATO attacks at bay is to set limits on login attempts based on username, passwords, device, and IP address. By limiting the login attempts based on the usual behaviour of your customers, you can keep the fraudsters away from accessing your user’s ecommerce accounts.
We hope you learned several things in this write-up, such as the definition of account takeover fraud, some signs to detect it, and some measures to prevent it. So, suppose you are highly concerned about the safety of your customers and your site. In that case, you must opt for ATO prevention solutions by talking to a prominent account takeover fraud prevention firm now.