Account Takeover Fraud Jumped 31 Percent in One Year

By:
Chris Gaetano
Published Date:
May 12, 2017
Phone Fraud

Account takeover fraud, where scammers use stolen information to pose as the account holder and immediately drain their money, has been on the rise lately, with incidents of such schemes rising 31 percent between 2015 and 2016, according to CNBC. This type of crime is trending because of increasing security in other areas, like how credit and debit cards now use chip and pin technology. Banks and brokerage firms, however, have far more points of weakness: you, your bank, or the bank's system can all be targeted through methods like malware, social engineering, phishing schemes, or email compromise, in order to initiate wire transfers from anywhere from the bank branch to email to the online system to a call center or even a fax. This means that not only is this method growing in popularity, but the amount lost is also increasing: roughly $2.3 billion were lost between 2015 and 2016 through such schemes, representing a 61 percent increase in the same time period. 

Security experts recommend you protect personal data, safeguard account details, set strong passwords, opt in for extra protection like two-factor authentication, set up alerts from your bank, and monitor your accounts regularly. 

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