Account fraud has been a persistent issue for as long as digital transactions and online accounts have existed. In recent years, however, the threat landscape surrounding account fraud has evolved significantly. SC Media’s Bradley Barth sat down with Mark Batchelor, Verosint’s CTO and co-founder, to discuss the current trends and challenges associated with this growing problem.
Traditionally, when people thought of fraud, their minds gravitated towards merchant fraud, such as credit card scams or financial fraud. While those types of fraud still occur, there has been a notable shift in focus towards account fraud. Mark highlighted the need to pay attention to fraudulent activities occurring at the account level, going beyond the simple act of unauthorized access to an account.
Account Takeover Fraud: A Growing Concern
One particular form of account fraud that has gained prominence in recent years is account takeover fraud. In these cases, malicious actors gain unauthorized access to user accounts and exploit them for their own gain. Mark explained that a common initial step for account takeover fraudsters is changing the email address associated with the targeted account to receive recovery codes or prevent the legitimate owner from reclaiming the account. Recognizing this change in email address can be crucial in detecting and preventing account fraud.
Evolution of Fraud Tactics
The interview shed light on the fact that fraudsters are becoming more sophisticated in their tactics. They have become adept at understanding the risk thresholds set by fraud detection platforms and adapting their actions accordingly. For example, some criminals engage in a technique known as "slow rolling," where they compromise an account and wait for an extended period before taking further action, reducing the likelihood of triggering fraud detection systems.
Alternatively, they may strategically stay just below the threshold to avoid detection while preparing for their next move. These evolving strategies make it challenging for traditional security measures to keep pace with the ever-changing fraud landscape.
The Role of Anti-Account Fraud Solutions
As fraudsters continue to refine their methods, organizations must employ robust anti-account fraud solutions to safeguard their customers and their business. Mark emphasized the importance of leveraging technologies and tools specifically designed to detect and prevent account fraud. Solutions that employ advanced analytics, machine learning algorithms, and behavior-based anomaly detection can help organizations stay one step ahead of fraudsters.
A New Type of Fraud Requires a New Type of Solution
Account fraud is no longer confined to the realm of credit card scams and financial fraud. It has evolved into a complex landscape where malicious actors actively target and exploit user accounts for their own gain.
To combat this growing threat, organizations must prioritize the implementation of anti-account fraud solutions that are capable of identifying and mitigating fraudulent activities at the account level.
By staying vigilant and leveraging advanced technologies, businesses can protect their customers, preserve trust, and maintain a secure digital environment in the face of this evolving threat landscape. Watch the entire interview to learn more.