Account Takeover (ATO) Attacks is one of the biggest problems in cybercrime today and is becoming more and more frequent. Scammers carry out these attacks to withdraw funds directly from accounts or use compromised accounts as a starting point for various crimes such as money laundering, phishing, and money transfers. spamBusinesses, on the other hand, spend time, effort, money and reputation trying to clean up the mess.
However, by implementing a robust authentication solution like Arkose Labs, businesses can not only mitigate the risk of account takeover, but also save valuable resources and time. This will also lead to higher ROI and lower costs. This is because businesses do not have to rely on manual processes to handle fraud cases. Additionally, authentication solutions can be used to reduce false positives and increase the efficiency of anti-fraud operations.
What is the true cost of ATO for your business?
The True Cost of ATO – Is Your Account Secure?
lack of visibility
The inability to visualize the extent of damage caused by ATO makes detection of ATO difficult. This lack of visibility is clearly highlighted in recent findings. Arkose Labs survey of 100 IT professionals across industriesNearly 30% of the companies surveyed reported no increase in ATO attacks in 2020, while half reported only a modest increase.
This statistic is in stark contrast to the volume of ATO attacks recorded in the United States. Arkose Labs network— 50% surge and 90% increase in the second half of 2020 Q4This highlights the lack of visibility into the volume of ATO attacks facing businesses.
Businesses face financial and reputational losses
Often, the effects of account takeover attacks are discovered after downstream exploitation and financial loss. In addition to losing millions of dollars each year, the ATO has negative effects. Great user experience (90% of businesses agree) Causes brand erosion and customer churn. These are pretty long term damages as it takes years of effort to build a brand and get customers.
Arkose Labs Research We found that 5% of large companies (10,000 or more employees) reported annual costs in excess of $1 million, and 10% reported losses of $500,000 to $1 million. However, it is important to note that these losses do not include cleanup costs, application downtime, operational costs, or refunds to customers for lost funds. This means that the actual loss is much higher.
Another major concern concerns regulatory compliance. When a bad actor succeeds in expanding his ATO attack, affected companies are brought to the attention of regulators, facing hefty penalties and uncomfortable questions about the lack of adequate security on their platforms. is sent.
Fortunately, with the right security measures in place, businesses can protect themselves from automated attacks and stay compliant with the latest regulations. You can improve your ROI by ensuring your customers are protected from malicious threats. Additionally, businesses can use this opportunity to outperform the competition by demonstrating their commitment to security and compliance, helping to build trust in the marketplace.
Account takeover attacks are spreading across the industry
All industries will bear the brunt of the ATO, but the worst hit will be professional services, healthcare, financial institutionand e-commerce Ecommerce companies have a duty to keep user accounts secure. This is because fraudulent transactions, payment fraud, and negative brand reputation can harm user accounts, which in turn can impact revenue.
Financial institutions that own the most valuable customer data main target of attacker. The ATO is also the most regulated industry. This means that a successful ATO could result in hefty fines, greater regulatory action, and legal and compliance costs leading to financial losses. A whopping 94% of the financial institutions surveyed. Arkose Labs research Agree with degradation of ATO attack User experience for their customers.
Who monitors ATO?
There is no clear consensus on who is responsible for combating fraud within an organization. Each division sees it as the other division’s role. For example, the majority of respondents in our survey Information security Some say ATO prevention is the responsibility of fraud, engineering, or product teams. Verdicts were also split by company size, with 55% of the larger companies saying they need to handle information security and he needs to handle ATO, followed by 29% for fraud and 14% for engineering.
However, fighting ATO attempts is the prerogative of every organization, regardless of its size, and requires a dedicated team to handle them centrally. That said, fraud prevention investment is very low, with the majority reporting fraud spending between 1% and 5% of their technology budget, and 3% reporting having no dedicated budget at all. This is a time when the volume of account takeover attacks is increasing, and the estimated cost of handling them can be up to 8% of a digital business’ annual revenue.
By investing in fraud prevention, businesses can not only reduce the cost of ATO trials, but also save costs in other areas such as customer service and chargebacks. With better security, a company can also improve his ROI in the long run, resulting in better customer retention and a better customer experience.
Be proactive and adopt a zero-tolerance approach to fraud
Companies often take reactive actions to stop ATOs, such as implementing stricter controls, banning accounts, and classifying a higher percentage of traffic as suspicious.However, these measures disrupt the digital experience of genuine users and often lead to false positives. viable approach To combat ATO attacks, you must stop attackers at the entrance.
Arkose Labs takes a zero-tolerance approach to fraud that uses friction smartly to ensure that true users continue to enjoy a seamless user experience.of each user risk assessment, Enforcement challenges Presented. These challenges are becoming increasingly complex, exhausting malicious users and undermining cyberattacks.
For more insight into the landscape of account takeover attacks in your industry, Investigative report now.
*** This is an Arkose Labs Security Bloggers Network syndicated blog created by Arkose Labs. Read the original post: https://www.arkoselabs.com/blog/ato-attacks-severely-harm-user-experience-and-brand-reputation/