Account takeover fraud is ramping up to an “industrial scale,” according to one analyst who says many financial institutions are not prepared to defend against “Fraud, Incorporated.”
Trace Fooshee, senior analyst at Aite Group, told CUToday.info financial institutions are now getting caught off guard as crooks rapidly increase the size and scale of account takeover crime.
“It is not that they are caught unaware that these attacks are happening, they are caught off guard by the sheer number of them,” said Fooshee.
Account takeover fraud is a form of identity theft where a third party gains access to unique details of a trusted user’s online accounts. By posing as the real customer or member, fraudsters can change account details, make purchases, withdraw funds, and even leverage the stolen information to access other accounts.
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