Sift uncovers and blocks fraud ring Account Takeover Campaign

Friday 1 October 2021 14:29 CET | News

Sift, a US-based fraud prevention company, has released its Q3 2021 Digital Trust & Safety Index, which details the methods fraudsters use to launch account takeover (ATO) attacks.

Sift’s Q3 2021 Digital Trust & Safety Index also revealed a staggering 307% increase in ATO attacks between April 2019, shortly after many COVID-19 stay-at-home orders were enacted, and June 2021. This attack method made up 39% of all fraud blocked on Sift’s network in Q2 2021 alone. 

Sift’s network data uncovered significant ATO risk for the fintech and financial services sector and its users. ATO attacks against the fintech sector soared 850% between Q2 2020 and Q2 2021, mainly driven by a concentration on crypto exchanges and digital wallets, where fraudsters would likely try to liquidate accounts or make illicit purchases. 

A more detailed picture reveals the following findings:

  • Almost half (48%) of ATO victims have had their accounts compromised between two and five times. 

  • 74% of consumers surveyed say they would stop engaging with a site or app and select another provider if their account was hacked on that site or app.

  • 45% of those who experienced ATO had money stolen from them directly, while 42% had a stored credit card or other payment type used to make unauthorized purchases, and more than one in four (26%) lost loyalty credits and rewards points to fraudsters. Perhaps most worrisome is nearly one in five (19%) of victims are unsure of the consequences of their accounts being compromised. 

  • One in five (20%) consumers surveyed feel less safe shopping online today than they did a year ago.

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Keywords: Sift, digital identity, fraud prevention, account takeover, fintech, research
Categories: Fraud & Financial Crime
Countries: United States
This article is part of category

Fraud & Financial Crime