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10/24/2024
The Financial Institution’s Role in Fighting Account Takeovers
Payments Journal
Despite years of investment in anti-fraud measures, account takeover (ATO) issues continue to plague financial institutions and consumers. Traditional authentication methods have left too many gaps for cybercriminals to exploit, often through easily compromised or acquired credentials.
Fighting this type of fraud has become a major concern for many financial institutions, often with diminishing returns. A report from Javelin Strategy & Research, ATO Fraud: Why It Remains FIs’ Greatest Fraud Risk, explores why a short-term focus on identity verification and authentication is adversely affecting FIs’ ability to dramatically reduce ATO.
A Resurgence of ATO Fraud
When COVID-19 forced more business to be conducted online, new account fraud became the scam of choice for cybercriminals. But as businesses returned to more face-to-face interactions, there has been a resurgence in ATO fraud. In 2023, consumer losses from ATO fraud increased by 15% from the previous year, totaling $13 billion.
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