Introduction
Account takeover identity theft is a growing problem for customers and businesses alike. What once was limited to fraudulent purchases made on credit cards is now extending into more areas of the customer experience. This includes information breaches where sensitive data such as name, address, social security number and even passwords are stolen from companies’ own databases. This post will explore what account takeover identity theft looks like, how it happens and what you can do about it.
What are identity theft crimes?
While the term account takeover fraud may sound like something out of a movie, it’s actually a very real crime that can happen to anyone. It occurs when a criminal uses your identity to take over an existing online account (like email or social media) and commit crimes against you. He or she might use your email address to send viruses and malware; he or she might use your credit card number to buy things online; he or she might even steal money from your bank account. The result is the same: you’re left trying to clean up the mess after someone else has used your identity for their own purposes.
The good news is that there are some steps you can take to protect yourself from account takeover fraud. Whether you’re a business owner or just someone who uses the internet, here are five ways to help prevent your accounts from being hijacked.
How to commit account takeover fraud?
Account takeover fraud can be carried out in a variety of ways. One common method is to exploit weak passwords or security questions. A hacker might take advantage of a site’s security breach, stealing login credentials from that site and using them to access your account on another service. Another common method is phishing emails that trick users into giving up their login credentials by posing as a legitimate company (e.g., PayPal).
Though there are many ways you could fall victim to an account takeover attack, the most common means are through stolen login credentials or malware infection on computers or phones.
How to make sure that your customers are safe?
To make sure that your customers are safe, you need to use multi-factor authentication. Multi-factor authentication is a security system that requires more than one piece of information before granting access to an account. This makes it harder for someone who might be trying to steal someone else’s identity and impersonate them on your website or in other areas of business.
If you think about it, what are the ways people usually identify themselves? They might give their name and address or social security number—but those aren’t exactly hard to find out about someone online nowadays! Instead of relying on just one piece of information like this, try using something else that only belongs to the person (like their birthdate) as well as something they have on them right now (like their phone). That way even if someone could guess both pieces of information, they wouldn’t be able to get into anyone’s account without having possession of at least one item first!
To set up multi-factor authentication:
The best way to protect users is with multi-factor authentication.
The best way to protect users is with multi-factor authentication. This means that in addition to a password, the user must provide a unique piece of information that only he or she possesses, such as a code sent by text message or email. It’s more secure because an attacker who knows your password will still need this extra piece of info before they can access your account.
Multi-factor authentication can be used in many different ways:
- A login screen might ask for both a username and one-time code sent via text message
- You might enter your username, then receive a push notification asking for confirmation (similar to how you confirm purchases on iOS devices)
Takeover identity theft can be stopped by using some basic, but powerful techniques.
You can take the following steps to protect your customers and prevent account takeover identity theft:
- Use multi-factor authentication. This is a method of validating a person’s identity by requiring them to use two or more forms of identification, such as a password and an authentication code sent via text message. The second factor is sent only after the first has been verified. For example, if your business uses multi-factor authentication on its online banking platform, you might be asked for your username, password and then a six-digit code that gets sent to your phone via SMS text message.
- Use best practices for password management. Make sure employees create strong passwords that include both letters and numbers in combination with symbols (such as ! @ # $ % ^ &). Ideally these passwords should be at least 16 characters long but no longer than 64 characters in length—that’s about one word per character! Also make sure users don’t re-use passwords across multiple accounts or devices because this makes it easier for hackers to gain access if one of those accounts becomes compromised by either malware or phishing attacks.* Use email security features such as DMARC (Domain Message Authentication Reporting & Conformance) which helps detect email spoofing attacks so consumers know whether emails from financial institutions are legitimate.* Encrypt sensitive data stored on servers using AES 256 encryption algorithm which is used widely across many industries including healthcare supply chain management systems.* Backup all important files frequently – preferably daily – so they’re available should there ever be any sort of issue with the server hosting those files.* Store backup copies offsite so they’re protected against natural disasters like fires or floods that could destroy both physical locations housing equipment/servers plus data stored within them if not backed up regularly.”
- Side note: Check out Business verification services as well!
Conclusion
In summary, account takeover identity theft is a serious problem that can be stopped by using some basic, but powerful techniques. The best way to protect users is with multi-factor authentication.
Ingrid Maldine is a business writer, editor and management consultant with extensive experience writing and consulting for both start-ups and long established companies. She has ten years management and leadership experience gained at BSkyB in London and Viva Travel Guides in Quito, Ecuador, giving her a depth of insight into innovation in international business. With an MBA from the University of Hull and many years of experience running her own business consultancy, Ingrid’s background allows her to connect with a diverse range of clients, including cutting edge technology and web-based start-ups but also multinationals in need of assistance. Ingrid has played a defining role in shaping organizational strategy for a wide range of different organizations, including for-profit, NGOs and charities. Ingrid has also served on the Board of Directors for the South American Explorers Club in Quito, Ecuador.
