Account takeovers (ATOs) are on the rise, fueled by the widespread use of automated bots. According to a recent report by LexisNexis Risk Solutions.
Fraudsters often test stolen identity data through the media. The media industry has seen significant growth in the number of bots performing payment transactions year over year. This likely stems from fraudsters testing stolen credit card data before using validated cards in a more lucrative attack elsewhere, such as in e-commerce or with financial services. However, attack rates on media payments were lower than in other industries, likely because they offer fewer cash-out opportunities.
The pernicious and pervasive impact of high-volume automated bot traffic plays a major role in fraud and costs the industry billions each year. The footprint of automated robots is global and vast.
Yet companies can deliver a great customer experience while strengthening their ATO prevention. It’s certainly a balancing act for the media industry, but it’s doable.
The Rise of Online Gambling and Gambling Simplifies ATOs
A recent surge in online gambling and gambling is attracting fraudsters to the industry. New player bonuses lead to an influx of new account creations, creating an environment for more ATOs.
Fraudsters often exploit large-scale free game opportunities to increase their chances of winning a jackpot. The high volume of account takeover attempts represents the risk posed to the industry by fraudsters looking to access good user account balances or simply launder the proceeds of crime across different industries and geographies.
The telecommunications industry is ripe for ATOs
Telecommunications offer fraudsters the opportunity to launder high-value material, as well as register prepaid and postpaid mobile phone contracts to commit other frauds. With the COVID-19[female[feminineDue to the shift from physical stores to digital transactions, telcos have had to prioritize their digital transformation, moving away from the in-person selling and identity verification checks they typically perform in-store. .
Monetary exposure due to account takeover is extremely high, although overall attack rates have remained low. This is largely due to the high value of cell phones and the ability to rack up large account charges quickly, especially on content downloads and media streaming.
But what can we do? How can companies reverse ATO price without seeing customers heading for the exits? Here are three key recommendations.
1. Adopt modern authentication based on digital identity
Today, the savviest enterprises are moving from an overreliance on login credentials to digital identity-based user verification solutions that combine identity and threat intelligence with advanced behavioral analytics. These solutions allow businesses to instantly recognize legitimate customers so they can automatically detect and block fraudsters and bots.
Organizations will be able to better align the right authentication method with the specific transaction risk to deliver the best customer experience. Among other things, it can help reduce unnecessary interactions that frustrate loyal customers and deliver the fast, convenient experience that customers have come to expect.
2. Leverage global, shared identity intelligence
Several organizations are turning to industry-specific consortia to access shared, global, anonymized identity intelligence to dramatically scale their datasets with high-quality data sources. This allows merchants to identify legitimate customers while preventing cybercriminals (and the billions of automated bots they launch each year) from logging into a customer account, even if it’s the first time. they access the company’s site or application.
3. Confirm orders, comfort customers
A risk-based, multi-layered solution approach is most effective in combating fraud across different channels and transaction types. Assess transactions before they are finalized and uncover account takeover attempts by confirming account changes via email, SMS, and other forms of multi-factor authentication. Customers also have the added assurance that they are protected, without causing additional friction.
Less risk, more reward
The impact of these steps can be profound. Cybercriminals are less able to seize customer accounts and make illegal purchases, reducing chargebacks, false declines, and fraud losses. Customer satisfaction and loyalty increase. It’s the embodiment of the speed, security, convenience and consistency that today’s digital users demand. In the fight against fraud, this should incentivize merchants to turn the tide on their own terms.
