Cybercrimes are so severe and dangerous that the Federal Bureau of Investigation (FBI) is paying more attention to them. This stance isn’t surprising as not only can they lead to identity thefts, they could also topple governments.
Such a crime comes in different forms, and one of them is account takeover. As a business, learning more about them will help you appreciate the importance of having an account takeover detection plan in your IT security program.
What is Account Takeover?
Also known as ATO or account takeover fraud, it’s a kind of identity theft. The criminal assumes the identification of another by taking hold of their private account and personal information. These may range from credit card details to bank accounts, e-mails, and names.
To take over, the criminals use various malicious tactics. These include phishing or using brute force to crack passwords. The attacks can also be an inside job. A classic example is when a disgruntled employee who has access to sensitive passwords uses them to obtain financial data.
What is the Cost of an ATO?
It’s hard to quantify the economic consequences of ATOs to business since identity theft is so challenging and complex. The estimates, however, put it at around $16 billion. Enterprises can lose more as any security fraud could damage reputation. It gets worse when the companies don’t realize the attack as soon as possible.
What Makes Businesses a Good Target?
Many of these types of crimes occur among small businesses. They make ripe targets since they often do not invest in sound security technologies and fraud detection tools. But it’s also possible the numbers are high since most companies are considered small. In reality, criminals will always go for the one that’s easy to penetrate.
Although there are already laws and penalties for cybercrimes, the trend points toward upward. The best thing that companies can do is to protect themselves. The cleanup and the subsequent damage are a lot harder to repair.