As customers move from traditional banks and financial services firms to online-only options, the digital transformation is causing challenges for some firms. According to research by Security.org, one third of login attempts for financial services and financial technology companies were suspected account takeover attempts. The average value of financial losses from account takeovers of financial accounts was around $12,000.
Account takeover fraud often begins with compromised credentials that have been stolen, found on the dark web, or obtained through phishing attacks that trick users into giving their login information to fraudsters. Because customers reuse and share their passwords, the risk of account takeover fraud grows exponentially.